African Partnerships Programme Support to the Katanga Province on post conflict reconstruction of the urban water sector - through the establishment of.

African Partnerships Programme

Support to the Katanga Province on post conflict reconstruction of the urban water

sector- through the establishment of a programme

management, project development and project implementation capability -

13 November 2008

Marlene vd Merwe-Bothafor

Department of Water Affairs & Forestry and Water Institute of Southern Africa

SWAP

Agreed process for

harmonizationof systems

Government-Led process of

DonorCoordination

SystematicMechanism forConsultation of

beneficiaries

Clear & agreedSector policyAnd strategy

CommonPerformanceMonitoring/reporting

Sector MTEF(all local and

ExternalResources)

SA experience

NationalNSDP

(Political, strategic, policy)

PROVINCESPGDS

(Programmatic)

LOCAL GOVERNMENT

IDP(integration &

implementation)

PROJECT

SW

AP

ClusterPDSU

(Political, strategic, policy)

COUNTRIES(Programmatic)

LOCAL GOVERNMENT

(integration & implementation)

PROJECT

SW

AP

AMCOW(Political, strategic,

policy)

CLUSTERsPDSUs

(Programmatic)

COUNTRIES(integration &

implementation)

PROJECT

SW

AP

• Learnt from the SA experience that you need:

Co-Ordination of funds

+ (Bankable) Projects that consider TECHNICAL, INSTITUTIONAL, FINANCIAL & ECONOMIC elements

across the sector

= Sustainable water services

• PDSUs, aligned with NEPAD development corridors, and applying SWAP

will support countries in developing such bankable projects that will allow the

flow of donor funds – and the gearing of these donor funds – to deliver

sustainable water services towards AND BEYOND the achievement of MDG

target 7c

SWAP

About DRC and Katanga:About DRC and Katanga:• DRC 57.5m people (2005), 68% rural dwellers, 8m in Katanga, 3% growth rate• Since 1990’s, socio-political crisis – massive plundering, deterioration of infrastructure, closure of

waterways eg Congo River, weak productive sectors, human, material and financial resources, high poverty (80% / population)

• Access to water 20%, electricity 1%, earth houses 64%, roads and trails 70% in deteriorated state• Although a water-rich province, state owned water supply corporation (REGIDESO) supplies >6 m3 /

capita / annum of the urban population• Limited water supply is polluted – waterborne ailments are prevalent (french drains and septic tanks)• Inability of agency responsible for treatment & distribution of water in urban areas:

– Increase level of coverage and access due to 16 year neglect– Accumulation of unpaid debt = 50% of billed invoices, mainly from government agencies– No maintenance to plant and equipment during years of conflict – pipe work is old and high leak

profile– Lack of energy

Donor Policy in the DRCSignificant international donor assistance in DRC – addresses a range of problems

facing the DRC – mostly humanitarian

International Financial Institutions:

•World Bank

•International Monetary Fund

•centre linked to housing and development initiatives.

Bilateral Aid:

•Belgium

•European Commission

•The United Kingdom

•The United States

•Canada

•France

The Katanga Water Supply Project - The Katanga Water Supply Project -

Business Plan Outline (October 2008)Business Plan Outline (October 2008)

•To provide the context of support to the recipient country (DRC) and the direct beneficiaries (Katanga Province, REGIDESO and Lubumbushi community)

•To facilitate partners and stakeholders with specific interests and common development goals to make use of this project as a vehicle to accelerate delivery in Katanga and build the project into a regional programme and ‘beyond’

•Describe how, via SWAP / PDSU / leveraging opportunities, the Katanga project could serve as front runner for SADC MDG wat&san acceleration programme

Purpose of ProjectPurpose of Project

DWAF, through “Partnerships in the accelerated delivery of MDG’s in Africa” (APP) intend to provide support to REGIDESO by applying a R22 million ARF grant and complimentary funds for:

1. the implementation of short term interventions leading to immediate support to REGIDESO, such as:– Capacity building & training of identified individuals from REGIDESO– Provision of water supply equipment to REGIDISO– Addressing immediate and urgent O&M needs, incl training.

2. establishment of the SADC “Programme Development Support Unit” (PDSU) for its first project “Post-conflict reconstruction of the urban water sector linked to housing-, energy- and development initiatives in Katanga Province” through:

– developing the PDSU Terms of Reference and Operations Plan– resourcing the PDSU

3. the longer term development of the Katanga water and housing Project to enable further leveraging of financing

Project: Support to Katanga Province DRC on post-conflict reconstruction of urban water centre linked to housing and development initiatives.

Locality: Lubumbushi area

Development Corridor: North South DC

DRC Katanga stakeholders: Governor, RESIDESO , Ministry of Agriculture and Livestock - Natural Rural Water Service, Minister of Energy, Ministry of Environment, Nature Conservation and Forestry, et al.

RSA stakeholders: Dept of Water Affairs and Forestry, NEPAD Business Foundation, Gauteng Province (GDLP and GEDA) (coordination), et al.

Associated stakeholders: See next slide plus key partners such as UCLGA, SADC Water Division, IRC, WISA, Rand Water, dplg, etc

Seed Funding: R 22 million plus

Implementation mechanism: PDSU in Development Corridor, execution on country level via project, SWOP approach.

Agreements: Provincial Katanga /Gauteng (signed) ; National RSA/DRC (n-sign)

Stakeholder Their Interest or Requirement From The

Project

What the project needs from them?

Perceived Attitudes and/or risks

Actions to take

Department of Water Affairs and Forestry (DWAF)

o Support capacity building and knowledge sharing;

o Ensure adopting and implementation of the SWAP to project implementation;

o Maximise support to meet MDG targets in Katanga province

o Utilise funding from the ARF

o Network platform/knowledge sharing on country-to-country basis

o Resources via APP and MSB seed-funding

o Leverage R 22m from ARF and other funds

o Initial project development and implementation framework

o Capacity building

o DWAF fully committed to project and has set-up internal task team & PM to manage and support implementation

o Negotiating a bilateral MoU with the DRC. Katanga Project as pilot

o Location of project at national could potentially slow down implementation of project, hence DWAF/GPG to agree on implementation framework that is mutually beneficial and complimentary

o Secure high level political buy-in from DRC at national level to support Katanga initiative;

o Set-up fully mandated implementation framework taking into account MoU between Katanga and Gauteng. = Work within provincial agreement

o Ensure timely release of ARF funding

Gauteng Province (GDLP & GEDA)

o Delivery on provincial commitments and agreements made during July 2008 Premier’s visit to Katanga (MOU)

o 1500 housing units & services, water testing laboratory, spring project and recreational project;

o Dedicated resources to support delivery of MOU

o High level political commitment and support for stronger engagement with Katanga

o Need more structured engagement with private sector through NBF

o Financing

o Set-up Gauteng Working Group (MOU)

o Request Katanga Province to set-up Katanga Working Group

o Identify sources of financing for related and linked projects

Stakeholder Their Interest or Requirement From

The Project

What the project needs from them?

Perceived Attitudes and/or risks

Actions to take

NEPAD Business Foundation

o Leverage opportunities for PPP in supply of wat&san services to Katanga Province

o Programme oversight and coordination of multi-stakeholder input;

o Optimisation of private sector capabilities during planning and execution phases;o CESA support for the

PDSUo Engage

IDC/DBSA/CPFP for project development

o Fund-raising and mobilization of resources for Pre-feasibility and feasibility studies

o Leverage partnerships with international development partners

o Managing expectationso Force majeureo Marketo Sponsor/participantso Costso Interest and support from

NBF members, particularly during project development stage

o Identify interested parties among NBF members;

o Facilitate setting up multi-disciplinary team through integration of DWAF Task Team/ GPL/NBF for a coordinated and integrated engagement with Katanga Province

o Through CESA to facilitate and support technical visit to Katanga Province by multi-disciplinary and multi-stakeholder Project Steering Committee

Phases: Initiation, Planning, Implement&Control and Close-out Phases: Initiation, Planning, Implement&Control and Close-out

Aug – Oct 08: Project identification

MoU signature and political leadership

Strategy and Approach development and Buy-in (RSA & International) - R 120k

Sept 08 – Mar 09: Opportunity development and project preparation

Concept Business Plan developed – R 120 k

Stakeholders engagement

Feasibility Study (comprehensive **), TOR and Development funding - R2.4m

DWAF PM appointment and mobilise ARF funding

April 2009 – March 2010: Project Implementation

•Infrastructure development and refurbishment – R 22m plus

•Capacity building – R 1.5 m

•Commissioning

March 2010 ongoing: Close-out

•O&M and Management of assets, revenue, maintenance, etc

•Continued gearing of funds, grow the PDSU – regional integration.

STRUCTURE AND GUIDELINES FOR IMPLEMENTATIONSTRUCTURE AND GUIDELINES FOR IMPLEMENTATION

Support Process

Stakeholder Cooperation Structure and Mechanism

Communication Management System

Capacity building procedures and interventions

Preparation Planning Procurement O & M Renewal

Main Process(core business of

service delivery)

Analysis Project design procurement process operation ContractSocial, technical, Risk analysis design maintenance renewalFinancial,Environmental Finance architecture bidding monitoring renegotiationLegal Investment, tarrifs negotiation

Needs, PPP yes/no; Award of contract extension, arbitrationObjectives PPP type constructionObstacles conflictLeveraging resolution

Regulatory Process

Cooperation with regulatory body/ies( Political buy-in definitive contractual arrangements)

Source: manual for sustainable municipal services, Swiss Development Agency

AfDB identified key considerations in implementing water and sanitation:AfDB identified key considerations in implementing water and sanitation:

Push higher up the political agenda;

Develop sound policies & strategies;

Prepare sustainable action & investment plans;

Put local authorities in the driving seat;

Build sector capacity with a focus on local players;

Develop sustainable financing strategies;

Initiate partnerships with the private sector;

Encourage innovation, cooperation and R&D;

Monitor progress and evaluate impact.

1. Develop &/or update national water management policies, regulatory frameworks, & programmes, & prepare national strategies & action plans for achieving the MDG targets for water & sanitation (W&S) over the next 7 years

2. mobilize increased donor & other financing for the W&S initiatives including national projects & rural W&S initiatives, the African Water Facility, Water for African Cities programme & the NEPAD Infrastructure Project Preparation Facility, as committed in the G8 initiatives on W&S

3. strengthen AMCOW as a key regional mechanism, & other regional stakeholders, as relevant, for promoting cooperation on W&S

AU Declaration CommitmentsAU Declaration Commitments SWAP PDSU solution

offering

"The MDG’s are still achievable if we act now. This will require inclusive sound governance, increased

public investment, economic growth, enhanced productive capacity, and the creation of decent

work."

United Nations Secretary General Ban-Ki Moon.

THE END