Water Policy Programme 1 Strengthening Design, Finance and Delivery of Water Supply and Sanitation Programmes under PRSPs Seminar Kampala, 4 th February,

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Policy

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Strengthening Design, Finance and Delivery ofWater Supply and Sanitation Programmes

under PRSPs

Seminar Kampala, 4th February, 2004

ODI/WaterAid presentation

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Phase I: 2002

- preliminary assessment of extent of incorporation of water (WSS and WRM) under PRSPs in five African countries: Uganda, Zambia, Malawi, Kenya and Madagascar

- ie: review of PRSP preparation, both content & process: revealed inconsistent and often weak incorporation of water issues.

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Phase II: 2003-2004 (until end March)

Detailed study of progress of PRSP implementation in three countries, Uganda, Zambia, Malawi and Tanzania, in order to:-

a. investigate how resources, allocated to WSS priorities in PRSPs in the region, are converting into expenditure on WSS-related outputs/outcomes;

b. recommend how capacity for action by central & decentralised government may be strengthened to deliver on promises made in PRSPs - and how those commitments may be developed - for achievement of water-related poverty reduction outcomes;

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Phase II: 2003-2004 (continued)

c. make recommendations for how external donors may support this effort.

- ie: investigation of PRSP implementation and particularly two themes:-

(i) finance; (ii) design/delivery of WSS interventions under PRSPs.

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PRSPPriorities for WSS

Poverty reduction outcomes

Scope of WaterAid and ODI Country Studies

Composition of allocations

Composition of spend

Services and facilities provided

Budget Analysis

Zambia + Tanzania

Targeting of investment

and subsidies

Tanzania

Expenditure Tracking

Zambia

Sustainability of community

facilities

Malawi

Equity of water point

distribution

Malawi + Uganda

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Summary of Findings

from Malawi, Uganda, Zambia and Tanzania Country Studies

in Finance and Design/Delivery of WSS interventions

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Malawi - context

• Weak capacity – lack of donor confidence in sector

• Funding sources – highly uncoordinated, so tendency for impacts to be much reduced

• Current levels of spending are substantial, but no effective means for targeting

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Malawi - summary of findings1. Attempts at budgetary and policy reform, in line with the

PRSP, have had limited success

2. Insufficient information and lack of systematic sector-wide criteria to guide investments; assessment on a project-by-project basis

3. Consequently lack of planning coherence; difficulty in monitoring spending and evaluating results.

4. User financing of water points is low due to inconsistent community management practices and lack of financial accountability.

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Malawi – key recommendations

A. Study has illustrated the utility of “water-point density mapping” to show distribution of resources within districts and sub-districts

NB: Use of equity of distribution indicator which measures the variation in the distribution of

resources for water development in a given area

- as a way of measuring the difference in access to water services between different areas (e.g. in a whole district).

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Equity of Distribution Indicator Steps

• Water point survey – age, provider, location and condition of improved community water point

• Translation of GPS data into maps

• Calculating improved community water point density (“ICWP”), based on census statistics of population distribution in area; GPS/GIS database created on number & location of water points

• Calculate average density in the area, deviation from mean and equity of distribution

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Malawi – key recommendationsB. Unless there is adequate attention to improving

sustainability, investments will continue to be ineffective in reducing poverty

NB: Use of sustainability “snapshot” which measures sustainability according to three indicators of sustainability of community water infrastructure:– financial – availability of finance for repairs;– technical skills – access to skills to carry out repairs;– equipment and spare parts – access to and

availability the variation in the distribution of resources for water development in a given area.

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Sustainability Snapshot

• Three levels of grading of availability of finance, technical skills and equipment/parts:-– 1: not available when needed;– 2: some availability, but not sufficient;– 3: available for all maintenance & repair needs.

• Score each community and its facilities against the above to determine the level of sustainability

• Product of interviews with community respondents.

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Uganda – scope of study

• Analysis of planning, monitoring and evaluation systems

• Assessment of equity and sustainability - calculation of water point density at sub-

country and parish level in sample district.

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Uganda – summary of findings - I

1. Equity Issues

- distribution of water points across the district is uneven

- at sub-district level, inequity in distribution of water points increases further

- to understand whether WSS objectives are being realised, monitoring and analysis needs to go beyond district-level aggregates

- inequity increases rather than decreases over time: poorly served parishes remain unserved ‘more for some, none for some’

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Uganda – summary of findings - II

2. Sustainability- analysis of sustainability: poor and non-poor are both

able to finance O&M, but the poor have less access to technical skills and equipment and spare parts - which may undermine water point sustainability in poorer areas

3. Planning and Monitoring

- despite coherent policy and strategy, equity and sustainability remain a concern

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Uganda – summary of findings - III4. Indicators of Performance - inadequate: district-level coverage figures do not tell the

whole story, and neither do total no. of people served

5. Local Capacity- planning guidelines are not followed because incentives

for compliance are weak;

- guidelines for community contributions are inconsistently followed, with lack support of local elected leaders;

- limited capacity for M&E (information collection and analysis) at district level and inadequate mechanisms for feeding back to national level.

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Uganda – recommendations

A. Adopt the “water-point density mapping” tool (as per Malawi) for planning and monitoring distribution of resources

B. Sustainability “snapshot” is a useful means of expanding understanding beyond functionality

C. Need to develop indicators to measure the performance of districts in planning and management terms.

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Zambia – scope of study

• Resource allocation and flows, decentralisation and poverty reduction

• Budgeting process

• Estimation of financing requirement to meet MDGs.

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Zambia – summary of findings - I1. Delays in Budget Execution- budgeting process has been reformed and is logical,

but significant time-lag exists in budget preparation and actual release of funds

2. Impediments to Financial Planning - WSS sector budget heavily dependent on donor

funds (up to 80%); combined with lack of systematic criteria for sector allocation, this impedes integrated financial planning

3. Impediments to Monitoring- govt is unable to track overall donor expenditure;

therefore is unable to monitor sector performance

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Zambia – summary of findings - II4. Roles/Responsibilities Unclear- lack of clarity in roles and responsibilities of the different ministries

which are sectoral spending bodies

5. Decentralisation- local government has as yet little input into the preparation of

sectoral budgets, and there is currently no effective mechanism for decentralised needs assessment

6. MDG Financing Requirement- using rural population growth estimates, and the water point

inventory of 1993-97, the study calculated 1,813 new water points every year to achieve MDG targets;

- assuming average costs per borehole, an estimated USD 9 million per annum is needed to reach rural MDG targets (high, but affordable?).

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Zambia – recommendations

A. Use existing water point inventory as a tool to contribute to district-level planning of sector investments

B. Decentralise fiscal control through mechanisms such as conditional grants.

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Tanzania – summary of findings - I

1. Fragmented Budget - national budget fragmented into line items which reflect individual

initiatives negotiated with individual donors outside the planning process: difficult for line ministries to prioritize sector spending in line with PRSP priorities

2. Existing Inequity in Access; Inequitable Investment - access to piped water supply is inequitably distributed across

expenditure quintiles;- richer households have better access to piped water supplies than

poorer; - donor projects are predominantly for piped systems;- piped water supplies cost 10 times that of protected water supplies;- therefore investment is effectively targeted to richer households

including the public subsidy.

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Tanzania – summary of findings - II

3. Regional Inequities

- marked regional disparity in terms of improved water supply coverage, eg. between Lindi (11%) and Kilimanjaro (74%).

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Tanzania – recommendations - I

A. Move towards a Sector-wide approach and General Budget Support

- by water sector donors (especially those working in rural water supply) - in order to enable line ministries to restructure budgets in line with PRS

priorities - “mould” of a donor-by-donor dynamic can only be broken through GBS

which brings the MoF and planners centre-stage

B. Develop guidelines for district level investment policy- to direct local authorities to phase investment based on the returns (in terms of number of additional people served per dollar invested)- before investing in boreholes, examine the cheaper option of protecting

traditional sources.

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Tanzania – recommendations - II

C. Introduce Formula-based Budgeting Mechanisms- to even out region (and district) disparities- e.g. resources allocated to districts according to number of

population who do not have access to clean water and sanitation (as assessed by national surveys)

NB: Malawi and Uganda studies show need also to investigate

disparities within districts.

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Tanzania - issues for more research

• The livelihood impact of water supply interventions - interface between domestic and productive water supply

• Relationship between time spent fetching/carrying water and the reliability of the water point.

• Tariff setting, user contributions, livelihoods and impact on sustainability

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Strengthening Design, Finance and Delivery ofWater Supply and Sanitation Programmes

under PRSPs

• THANK YOU

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From PRSP Priorities to resource targeting…

PRSP Priorities

GOVERNMENT REVENUES- Tax and non-tax

EXTERNAL FUNDS- Budget Support- “Project” support

RESOURCE “ENVELOPE”- resource projections- budget guidelines and expenditure limits (MoF)- line ministry expenditure proposals

Line Agencies

PRSPObjectives

PRSPAction Plan-with costings

BUDGET-prepared-appraised-approved

Local Govt.

Funds release

PRSP documentBudget formulation and execution

Fundstargeting T

MTEF- 3 years + indicative resource allocation plan