Presentation on theme: "African Development Bank Water Sector Initiatives"— Presentation transcript:
1 African Development Bank Water Sector Initiatives AfDB Partnerships Forum24 March 2010bySering JALLOWManager, Water & Sanitation DivisionNorth, East & South RegionOIC, Water & Sanitation Department &African Water Facility
2 Regional Context Snapshot of current situation About 4% available water resources developed. 6% cultivated land irrigated. Less than 6% of hydropower potential developedLess than 200 m3/capita average storage capacityBy 2025, 25 African countries will face water scarcity or stress…climate change will exacerbate situation.62% have no access to sanitation (583 million people)36% have no access to water supply (341 million people)Progress towards MDGs slow!
3 Bank IWRM Policy, Strategic Focus and Key Initiatives IWRM POLICY FRAMEWORKSocial + Economic + Environmental usesCost recovery, PSP, GenderCapacity building, regulatory policy env.Participation, Transboundary cooperationIncrease irrigation and hydropower financingFocus on poorest 65% in rural areasSupport urban, peri-urban, small-medium townsPromote Transboundary WRMSupport the enabling environment to attract more resourcesSTRATEGIC FOCUSMTSKEY INITIATIVESAfrican Water FacilityRural Water Supply and Sanitation InitiativeMulti-donor Water Partnership Program
4 Key Highlights - Financing and Portfolio..… Financing has grown seven-fold in the last 7 years from average UA 46 (Euro 50) million per annum to over UA 310 (Euro 340) million in 200965 active projects in 35 countries. 25 projects are rural. Total volume of about US$2.37 billion (UA billion).
5 Key Highlights - Financing and Portfolio..… 74 new operations planned for with UA 3 billion (US$ 4.5 billion) ADB Group financing.Financing expected to more than double between 2009 and 2013AfDB WSS financing increased from UA 661 (Euro 724) million in ADF X to UA 1.0 (Euro 1.1) billion in ADF XI periodCould reach over UA 2.37 (Euro 2.6) billion in ADF XII periodSeeking co-financing opportunities
6 Rural Water Supply and Sanitation Initiative (RWSSI) GoalTo reduce poverty through attainment of the MDGs by accelerating access to improved rural water supply and sanitation (WSS) facilities in a sustainable mannerObjective:To ensure that 80% of the rural population in Africa has access to safe drinking water supply and sanitation byStrategyDemand Responsive Programme Approach, building partnerships, fast tracking, appropriate technology, Mobilize more fundsCostUS$ 14.2 billion6
7 RWSSI Trust Fund….. RWSSI TRUST FUND The RWSSI Trust Fund provides a channel for Donors:To scale up their financing for the water sectorto earmark resources to the Bank for the financing of RWSS Programmes.to support countries where they do not have a strong presenceRWSSI TRUST FUNDEstablished in 2005Contributions of approximately Euro 116 million:France (40M),Denmark (30M),the Netherlands (20M)Canada (24M)Switzerland (2.16 M)GovernanceDonors form the Steering CommitteeSteering Committee approves annual work programmeADB Board approved Individual projects
8 RWSSI Achievements Phase I Results (With Bank + RWSSI TF financing) 25 programmes approved for total US$ Bn. Bank financing close to US$1.0 bn and over US$1.3 bn leveraged. About US$ 75 million funding from RWSSI Trust FundRural population served with safe water supply at the end of 2009 over 27 million.Population served with improved sanitation at the end of 2009 close to 22 millionInvestments will provide 32 million and 30 million people with water supply and sanitation respectively by end 2010Higher priority given to RWSSProgrammatic approach in 60% RWSSI interventionsIncreased use of country systemsEnhanced community action; Gender issues mainstreamedCoordination and harmonization of donorsQuicker programme development and start up8
10 Phase II Revised Financial Requirements Phase IIPhase IIITotalAfDB0.761.842.435.03Other Donors1.853.064.068.97Gov’t & Com’ties0.601.221.623.418.104.22.1687.44Donors are invited to partner on RWSS1. Contributions to RWSSI TRUST FUND2. Increase BILATERAL FUNDING3. Increased ADF RESOURCES
11 AFRICAN WATER FACILITY Established by AMCOW to assist RMCs to mobilize and apply resources to finance water development activities in AfricaOperations guided by a Governing CouncilMembers from AMCOW, donors, African Union, UN-Water/Africa and AfDB, chaired by AMCOWHosted by ADBAWF Special characteristicsA home grown African initiativeDemand drivenInnovative & Catalytic projects with variety of means & approachesBroad Eligibility: Central/local government, NGOs, RBOs, RECsGrant funding for small & medium size project: €50,000 to 5 millionFlexible & fast tracking
13 Areas of intervention in line with the most topical issues on African development Increasing funds available to the sector: The Facility catalyzes and provides leverage through follow-on investmentsWith greater climate variability, the need for strong water resources management is ever more crucial. AWF addresses this through interventions in IWRM at national level, TWRM at regional level, and strengthening water knowledge, such as mapping of water resources.More recently, food security has become a grave concern. The Facility’s interventions in water for agricultural use and multi-purpose infrastructure platforms may be highlighted.The Millennium Development Goals (MDGs) constitute a steppingstone in the realization of the African Water Vision. The AWF contributes, in a modest way, to the direct increase in water and sanitation coverage. More importantly, the Facility supports the strengthening of the enabling environment, thereby allowing countries to increase their capacity to attract and utilize funding in the sector.
14 CURRENT STATUS Portfolio Results Resources Project portfolio at 61 projects valued at €69 mSupport to several strategic AMCOW initiatives: E.g., Water for GrowthResultsFollow-on investments leveragedBotswana €41 m, Volta Basin Authority €1.25 m, Republic of Congo € 69 m, Central African Republic €11m, additional €11 m expected, Geo-Aquifer: € 1m, Egypt €120 m expectedHigh level dialogue: Delivering on Water Security CommitmentsPan African Monitoring and Evaluation SystemsResourcesPledges of €132 m since inception (cash and in kind) from 12 donors incl. African countriesOf the €160 m required to implement the program, €59 m have been committed, leaving a gap of €101 m to be secured.Donors are invited to join the AWF.
15 Water Partnership Program (WPP) Participating Donors:Denmark (DK 15 Million), Canada(CAD 5 Million), Netherlands (USD 5 Million)Pledged Funds: About EUROS 9.08MGoal:“..promote planning of water programs within an integrated framework in the Bank and in countries”The funds also assist the Bank in :-Building capacity of water professional staffManagement of water data and informationAssessing and disseminating best practicesIWRM outreach and knowledge sharingPromoting effective collaboration and coordination in the water sector in AfricaObjectivesoperationalize the Bank's IWRM Policycreate awareness on and enhance commitment to IWRMsupport the coordinating efforts of the Bank with respect to the implementation of the AWV, MDG targets..Target: Bank, RMCs, Regional and sub-regional organizations.Over 22 key studies and knowledge activities undertaken.
16 WPP AchievementsAfrican Water Facility established, contributing to sector developmentRWSSI launched, contributing to the attainment of the WSS MDG targetsSupporting Africa’s participation in WWF and AWWKey products for operational use developed:Water Governance Study (to be published in May 2010)Guidelines for Water User Fee and Cost recovery (to be published in May 2010)Studies on Financial Instruments to Facilitate Investment for Water (to be published in May )Guidelines for Water HarvestingHandbook on Wetlands AssessmentGuidelines for WSS provision in SchoolsWater and Poverty Linkages in AfricaAgricultural Water Development in Africa
17 WPP 2010 Focus – Key Areas of Intervention Promoting and scaling up IWRM though collaborative strategic planning with key regional partnersImproving delivery of water supply and sanitation services in fragile statesEnhancing private sector participation in Bank funded water projectsFacilitating access to innovative financing mechanisms for the water sectorStrengthening dialogue and joint actions on water securityIncreasing Africa’s capacity to achieve food security through support to agricultural water development partnerships
18 WPP Priorities in the Medium-Term WPP will :-continue to strengthen the IWRM implementation capacity of AfDB and RMCsenhance RWSSI implementation through knowledge managementpromote water sector knowledge in the Bank including Field Offices to strengthen operational capacity and address contemporary sector challenges including Bank prioritiesImproving delivery of water supply and sanitation services in fragile statesEnhancing private sector participation in Bank funded water projectsFacilitating access to innovative financing mechanisms for the water sectorLeverage greater impact and effectiveness of knowledge management activities through strategic partnerships with specialized water sector institutionsEuro eight (8) million will be required to accomplish the WPP medium term Programme.Donors are invited to join the WPP
19 Financing water for growth Conference AnnouncementFinancing water for growthMinisterial Forum on FinancingWater Security in Africa2nd International Conference on rural water supply and sanitation 29th May 2010 (TBC)
20 Objectives & Expected Outcomes ObjectivesTo provide a platform for critical pan-African dialogueTo reach a shared appreciation for the key role water plays in enhancing national developmentTo renew commitment among partners towards scaling up efforts to support the implementation of RWSSI as Africa’s flagship initiativeEnhanced appreciation of the water-growth nexus and associated benefits from investing in Africa’s water security needs.A clear roadmap for how national governments may accelerate economic growthNational commitments to allocate funding and establish structures needed to implement the finance-related actions within the Sharm-El Sheikh FFI.Renewed commitment to scaling up financing for RWSS delivery in Africa and within the RWSSI framework
21 Participation & Contacts Expected Participationhigh level participants comprising:African ministers of FinanceAfrican ministers of WaterDonor representativesAcademic InstitutionsWater Sector PartnersFinancing InstitutionsPrivate sectorThe media ContactsOverall Conference coordinator:Mr. Arthur Swatson,Tel:Thematic preparation:Mr. Amhayesus MetaferiaTel.:Media & communications:Mr Sören BauerTel: