1. WSS PRSP Strengthening Finance of WSS Programmes under PRSPs A collaborative research project WaterAid and ODI WSSPRSP workshop Kampala Feb

2. Sources of funding Diverse and poorly co-ordinated and flows are difficult to quantify precisely Diverse and poorly co-ordinated and flows are difficult to quantify precisely Major donor-driven projects bypass the budget system Major donor-driven projects bypass the budget system Lack of donor conformity in approach to funding sector Lack of donor conformity in approach to funding sector

3. Government Revenue 2003 / 2004 NB – HIPC only equals 9% of total budget, of which 2.44% is WATSAN

4. Budgetary Allocation to PPES 2001-2002 (MK '000) Share % 2002-2003 (MK '000) Share % 2003-2004 (MK '000) Share % Agriculture165,4003%543,7495%804,1647% Water and Sanitation280,7005%253,2422%172,9611% Rural Feeder roads801,00014%400,0004%125,0001% Small-scale Enterprises91,4002%184,7362%282,4072% Education1,862,30031%5,902,98152%6,355,84552% Health2,255,60038%2,861,59725%3,095,23625% Safety nets196,0003%323,0003%510,5954% Good governance47,0001%356,4843%411,5213% Note: Total budgetary allocation for pro-poor expenditure is ring- fenced i.e. protected at 7% of GDP for next 3yrs. WSS as a share of GDP is projected to decline.

5. National processes for resource allocation I Overall fiscal discipline has improved in recent years, Overall fiscal discipline has improved in recent years,HOWEVER: WSS allocation in national budget less than amount projected for WSS in the Malawi PRSP WSS allocation in national budget less than amount projected for WSS in the Malawi PRSP Budgeting and allocation process for WSS sector does not follow the defined national budgeting procedures Budgeting and allocation process for WSS sector does not follow the defined national budgeting procedures

6. But is that the whole story? HOW MUCH MONEY IS FLOWING INTO THE SECTOR AS A WHOLE, NOT JUST FROM NATIONAL BUDGET? THIS IS DIFFICULT TO DERIVE, BUT THERE ARE OTHER WAYS.

9. 2,472 new working water points will be required BY 2015 in order to achieve the MDG in the surveyed areas. (33%) These new water points will reduce the predicted 1,056,273 unserved population in 2015 to 449,350. This figure represent 21% of the total predicted total population living in the surveyed area in 2015.

10. Investment in the water sector 1998 – 2002 Average of 669 water points per year in 30% of the country

11. How much is planned? JICA = 400 boreholes over 3 years JICA = 400 boreholes over 3 years EU = 1250 water points for 5years EU = 1250 water points for 5years NORAD= 510 water points for 5 years NORAD= 510 water points for 5 years CIDA = 120 water points per year CIDA = 120 water points per year CCAP= Average about 250 per year CCAP= Average about 250 per year WaterAid= Average about 60 per year WaterAid= Average about 60 per year KWF = Average about 40 per year KWF = Average about 40 per year Other sources ?? No overall plan or regulation Other sources ?? No overall plan or regulation Rough calculation = 1,020 per year outside PRSP 7,416 water points needed by 2015, achieve in 8.5 years

14. National Processes for resource allocation II No systematic sector-wide criteria to guide WSS investments No systematic sector-wide criteria to guide WSS investments Sector fragmented so difficult to develop coherent sector plan Sector fragmented so difficult to develop coherent sector plan Difficult to monitor spending and track results Difficult to monitor spending and track results Fiscal decentralisation planned for July 2003 but remains highly centralised Fiscal decentralisation planned for July 2003 but remains highly centralised

15. Community Contributions Different approaches in the same village. Different approaches in the same village. Payment and collection irregular and disorganised Payment and collection irregular and disorganised Insufficient for major breakdowns & replacements Insufficient for major breakdowns & replacements Sufficient to cover routine maintenance and minor repairs of boreholes Sufficient to cover routine maintenance and minor repairs of boreholes