wsp africa regional thematic work on wss in prsps and sector finance in sub-saharan africa
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WSP Africa Regional Thematic Work on WSS in PRSPs and Sector Finance in sub-Saharan Africa . Meera Mehta Kampala, Uganda, February 2004. Water and Sanitation Program – Africa “ An international partnership for improving sector policies, practices and capacities to serve poor people”. - PowerPoint PPT PresentationTRANSCRIPT
WSP Africa WSP Africa Regional Thematic Work on Regional Thematic Work on
WSS in PRSPs and Sector WSS in PRSPs and Sector Finance in sub-Saharan Finance in sub-Saharan
Africa Africa Meera MehtaMeera MehtaKampala, Uganda, February 2004Kampala, Uganda, February 2004
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Water and Sanitation Program Water and Sanitation Program – Africa– Africa
““An international partnership for improving sector An international partnership for improving sector policies, practices and capacities to serve poor policies, practices and capacities to serve poor
people”people” Nine focus countries:
Ethiopia, Kenya, Mozambique and Uganda (East and Ethiopia, Kenya, Mozambique and Uganda (East and Southern Africa)Southern Africa)
Benin, Burkina Faso, Mauritania and Senegal (West Benin, Burkina Faso, Mauritania and Senegal (West Africa)Africa)
YemenYemen Five regional thematic support groups:
FINANCE and PRSPsFINANCE and PRSPs, Reform and communications, , Reform and communications, Rural, Sanitation and Urban poorRural, Sanitation and Urban poor
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Regional Theme – PRSP and Sector Regional Theme – PRSP and Sector FinanceFinance
Addressing the issues of WSS in poverty Addressing the issues of WSS in poverty reduction strategies and sector financing for reduction strategies and sector financing for improved water and sanitation servicesimproved water and sanitation services
Two main activities:Two main activities: Incorporating Water Supply and Incorporating Water Supply and
Sanitation into PRSPs in AfricaSanitation into PRSPs in Africa Assessing Sector Finance – Water Assessing Sector Finance – Water
Supply and Sanitation Resource Flows Supply and Sanitation Resource Flows
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Desk review of the emerging experience in 10
countries (Jan 2002) WSP-ODI-WaterAid learning partnership –
ongoing Stakeholder workshop, 100 participants (June
2002) Benchmarking review of 12 countries (Oct
2003 – presented today!) Benchmarking review with participatory
stakeholder engagement - planned
Steps in the Africa WSS/PRSP Analysis…
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Benchmarking Review Results in Benchmarking Review Results in
12 African countries12 African countriesCountries: Benin, Burkina, Ethiopia, Kenya, Malawi,
Mauritania, Mozambique, Rwanda, Senegal, Tanzania, Uganda, Zambia
Five Criteria for Incorporation of WSS into PRSPs:
Was WSS adequately considered in poverty diagnosis?
Are WSS sector reforms recognized in PRSP? Does PRSP take account of sector financing
strategies? Monitoring and evaluation process in place for
WSS? Consultation process undertaken (not included in study
because of lack of information in documentation)?
6
0
0.5
1
1.5
2
2.5
3
MalawiBen
in
Ethiop
ia
Mozambiq
ueKeny
a
Tanzan
iaZam
biaBur
kina
Rwand
aSen
egal
Mauritan
iaUgan
da
How well are Countries Incorporating WSS in their PRSPs?
In this first benchmarking review of WSS in PRSPs, Uganda and Mauritania show the best performance on WSS in poverty diagnostics, sector reform, monitoring and evaluation and sector financing.
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0 0.5 1 1.5 2 2.5 3
WSS in Poverty diagnosticsWSS Sector Reform
WSS Sector FinancingWSS Monitoring and Evaluation
WSS in PRSPs by Element - Average Score across SSA Countries
In this first benchmarking review of WSS in PRSPs, PRSPs show a slight better performance on WSS in poverty diagnostics and sector reform. Monitoring and evaluation and sector financing are relative weak.
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0
0.5
1
1.5
2
2.5
3
WSS Average Score ofInterim PRSPs
WSS Average Score ofFull PRSPs
Improvement from Interim PRSPs to Full PRSPs
For Uganda, Mauritania, Burkina Faso, and Malawi there were no interim PRSPs.
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Water and Sanitation in PRSPsWater and Sanitation in PRSPsKey FindingsKey Findings
What is the degree of WSS coverage in SSA? Low incorporation Low incorporation Considerable variationConsiderable variation Improvement from interim PRSP to full PRSPImprovement from interim PRSP to full PRSP Two countries – Uganda and Mauritania – are emerging Two countries – Uganda and Mauritania – are emerging
as leadersas leaders How can WSS coverage and incorporation
into PRSPs be improved? Improved information and M&E systemsImproved information and M&E systems Sector program and financing Sector program and financing Advocacy and incentiveAdvocacy and incentive
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Three critical areas for action to improve WSS/PRSP
incorporation
Poverty DiagnosticsPoverty Diagnostics
Sector Information M&E SystemsSector Information M&E Systems
Sector Program and Sector Program and FinancingFinancing
Advocacy and IncentivesAdvocacy and Incentives
Stage 1:Stage 1:
Initial WSS Initial WSS Incorporation Incorporation
in PRSPsin PRSPs
Stage 2:Stage 2:
Sustaining/ Sustaining/ Improving Improving
WSS in WSS in PRSPsPRSPs
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Water and Sanitation in PRSPs – Water and Sanitation in PRSPs – Further workFurther work
Advocacy plan – regional, countryAdvocacy plan – regional, country Making the case for Water and Sanitation in Making the case for Water and Sanitation in
poverty reduction strategiespoverty reduction strategies Next round of benchmarking of WSS in Next round of benchmarking of WSS in
PRSPs, through a more participatory PRSPs, through a more participatory approachapproach
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Water and Sanitation Sector Water and Sanitation Sector Finance Finance
Key ActivitiesKey Activities Developing a framework for assessing resource Developing a framework for assessing resource
flows in the WSS sector and applications in flows in the WSS sector and applications in countriescountries
Regional comparative analysis of sector financeRegional comparative analysis of sector finance Other regional studies: WSS in Social funds, Other regional studies: WSS in Social funds,
and WSS Small providers and Microfinanceand WSS Small providers and Microfinance
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Why Resource Flows Why Resource Flows Assessments?Assessments?
Inadequate understanding of WSS sector Inadequate understanding of WSS sector finance - one of the key reasons identified for finance - one of the key reasons identified for lack of WSS incorporation into PRSPs in SSAlack of WSS incorporation into PRSPs in SSA Diverse sources and channels with equal importance Diverse sources and channels with equal importance
of public and private/community resources, and by of public and private/community resources, and by national and local governmentsnational and local governments
Exploring the potential to use financing to provide Exploring the potential to use financing to provide incentives for reforms and improved performanceincentives for reforms and improved performance
Finance is perceived as a constraint– need to assess Finance is perceived as a constraint– need to assess ‘gaps’ and explore leveraging‘gaps’ and explore leveraging
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Resource Flows StudiesResource Flows Studies Phase 1: Phase 1:
Exploratory studies in Kenya, South Africa and EthiopiaExploratory studies in Kenya, South Africa and Ethiopia Countrywide assessments using Countrywide assessments using institutional and institutional and
financial mappingfinancial mapping Phase 2: Phase 2:
Country level…Country level… Further studies in Uganda, Zambia, YemenFurther studies in Uganda, Zambia, Yemen Uganda – application of approach to sanitation financingUganda – application of approach to sanitation financing Kenya – contribution of findings and approach to assist Kenya – contribution of findings and approach to assist
Government of Kenya for WSS sector financial and Government of Kenya for WSS sector financial and investment planninginvestment planning
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Approach- Financial Approach- Financial MappingMapping
User Charges
MWRMD Water Supply Department
NWCPC
Local Authorities
LA Water Departments
Local Utilities
Small Private Providers
Community Based Organizations
Settlement/ Community/ Village
Local Government
National
Government budgets Direct Generation by WSPs
1. GOK Budget
4. Internal Generation
3. Off-Budget Donors
5. Community Contributions
2. LA Budget
User Charges
EExxiissttiinngg FFiinnaanncciiaall AArrrraannggeemmeennttss
Weak or non-existent links of
budgets to outputs, targets
and performance
Large uncoordinated off budget resources
Operational surplus not
accumulated or capitalized
Internal generation not
used for development exp.
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SubCounties
SubDistricts
Comm-unitiesMoFPED
MoH
MoLG
55 Districts
DWD
MoES
MoWLE
MoGLSD
13 Munic.Councils
KCC
60 TownCouncils
NWSC
CommunityContributions
DevelopmentPartners
FinancialInstns.
PrivateSector
NGOs
MicroFinance
LC5
LC3LGDP
SFG
Program
me aid
PHCCG
Equalisation Grant
WSCG
On-budgetOff-budget
Indicative sources of funding for sanitation activitiesIndicative sources of funding for sanitation activitiesProject aid
Usercharge
s
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National Budget Framework for SanitationNational Budget Framework for SanitationSource of funding Planned outputs
Activities MoH DWD NWSC
MoES
MoG MoLG
NGOs
Donor
Priv. secto
r
Comm-
unity
Total Narrative No. Unit cost
Rural household sanitation
Construction of latrines
200 100 50 10 30 10 400 Households with latrines
4000 0.10
Hygiene promotion
600 400 200 200 100 1500
Households with good hygiene
150000
0.01
Urban household sanitation
New sewer connections
Sewer maintenance
Hygiene promotion
Schools sanitation
Construction of latrines - new schools
Construction of latrines - old schools
Hygiene promotion
Total budget
Note: This is for illustration purposes only – it is simplified and figures are fictitious
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Emerging DirectionsEmerging DirectionsUganda SanitationUganda Sanitation
• Development of an overall budget framework Development of an overall budget framework linked to sanitation objectives and targets – linked to sanitation objectives and targets – inquiries at national and district levelsinquiries at national and district levels
• Better management of budgets and resource use at local government levels
• Exploring innovative ways of increasing ‘off-Exploring innovative ways of increasing ‘off-budget’ finance (NGOs, households, budget’ finance (NGOs, households, community, small private, etc.)community, small private, etc.)
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Selected FindingsSelected Findings Sector GovernanceSector Governance
Governance issues critical, often necessitate sector institutional Governance issues critical, often necessitate sector institutional reforms – and influence financing opportunitiesreforms – and influence financing opportunities
All three countries have adopted reforms and are at varying All three countries have adopted reforms and are at varying stages of implementationstages of implementation
Design of ‘Transition Process’ is critical… and need to assess Design of ‘Transition Process’ is critical… and need to assess its financial implications in all the three countries…its financial implications in all the three countries… Transfer of existing public schemes after rehabilitationTransfer of existing public schemes after rehabilitation Transfer of staff, fiscal decentralization and local capacity Transfer of staff, fiscal decentralization and local capacity
buildingbuilding Setting up new institutions – governance structuresSetting up new institutions – governance structures Setting up new financing mechanisms – e.g. water services Setting up new financing mechanisms – e.g. water services
trust fund in Kenyatrust fund in Kenya
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Selected FindingsSelected Findings WSS FinanceWSS Finance
Inadequacy of funding – generally highlighted by Inadequacy of funding – generally highlighted by countriescountriesBased on studies…Based on studies…
Some comparisons possible of what is being spent…Some comparisons possible of what is being spent…But….But….
Little rigorous analysis of what is really required? Little rigorous analysis of what is really required? Need to develop tools for strategic financial and Need to develop tools for strategic financial and
investment planninginvestment planning In relation to - allocation across sub-sectors and cost In relation to - allocation across sub-sectors and cost
sharing rules, financing rules, technology choicessharing rules, financing rules, technology choices
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WSS expenditure as WSS expenditure as share of public expenditureshare of public expenditure
-1.02.03.04.05.06.07.08.0
Ethiopia(2000)
Kenya(2001)
South Africa(2003)
National andLocal Budgets
-
1.0
2.0
Ethiopia Kenya South Africa
PublicExpenditure
Total SectorExpenditure
WSS expenditure as share of GDPWSS expenditure as share of GDP
WSS public spending appears low… WSS public spending appears low…
But inadequate assessment of the ‘required level of spending’But inadequate assessment of the ‘required level of spending’
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Comparing expenditure as a % of GDP - health Comparing expenditure as a % of GDP - health versus WSSversus WSS
Are we crowding out non-public resources?Are we crowding out non-public resources?
Source: Sub-Saharan Africa: World Development Report, 2003. Other countries: WSP-AF ongoing studies.
0
3
6
9
Health
Public
Total
Sub Saharan Africa
0
3
6
9
WSS Health
Ethiopia
0
3
6
9
WSS Health
Kenya
0
3
6
9
WSS Health
South Africa
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Use of Non-public ResourcesUse of Non-public ResourcesKenya and Ethiopia…Kenya and Ethiopia…
Significant prevalence of non-budgetary and non-Significant prevalence of non-budgetary and non-public resourcespublic resources User charges (39%)User charges (39%) Donors through NGOs (20% ) Donors through NGOs (20% ) Need to explore NGO coordinationNeed to explore NGO coordination
Efficiency and effectiveness are difficult to Efficiency and effectiveness are difficult to measure at national level without special studies measure at national level without special studies as routine monitoring information is weak / non-as routine monitoring information is weak / non-existentexistent
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Why regional resource flows comparisons?
At country levelAt country level to enable comparison with other countries, and with to enable comparison with other countries, and with
regional benchmarks regional benchmarks Civil society advocates and parliamentarians to make Civil society advocates and parliamentarians to make
governments accountable for resource allocations and governments accountable for resource allocations and utilizationutilization
Donors to adjust their priorities and assistance Donors to adjust their priorities and assistance All stakeholders to gain access to good practices and All stakeholders to gain access to good practices and
innovative ideasinnovative ideas At regional level – At regional level – to exploreto explore
Feed into NEPAD and AMCOW processFeed into NEPAD and AMCOW process Regional donor groups, African Water FacilityRegional donor groups, African Water Facility DonorsDonors
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Sector Finance – Further WorkSector Finance – Further Work Expand the Expand the scope of benchmarkingscope of benchmarking
(PRSP) to incorporate country level WSS (PRSP) to incorporate country level WSS financial performancefinancial performance Develop indicators, benchmarks and Develop indicators, benchmarks and
performance assessment in a participatory performance assessment in a participatory manner with stakeholder engagementmanner with stakeholder engagement
Refine institutional and financial mapping Refine institutional and financial mapping to expand into strategic models for country to expand into strategic models for country level level financial and investment planningfinancial and investment planning (Kenya, Uganda – sanitation)(Kenya, Uganda – sanitation)