Topic 2.4: Multiple uses and functions of water services THEME 2 Topic 2.4: Multiple uses and functions of water services More MDGs per drop & dollar invested

T 2.4 Preparatory meeting Addis Ababa Nov. 2008 2 main sessions and a wrap up well attended, well diversified participants and panelists

What is MUSF ? MUSF is, by purpose or as a practice, the process of using within a system the same water for different uses and functions. MUSF occurs at all scales of water systems: water infrastructure ecosystem, household. Servcies refers to provision (water supply, irrigation) and ecosystem services Local refers from homestead to system; basin is more IWRM 3

Common practices on irrigation systems

Common practices on wetlands systems Functions associated to water systems Flood protection Social, cultural Ecosystem services

Common practices on Domestic systems

MUSF is innovation Innovation lies in how these uses and functions can be addressed as “services” Innovation  Cost benefits and impacts on poverty are today not enough known Innovation  hundred of millions hidden users and beneficiaries are left unaccounted Servcies refers to provision (water supply, irrigation) and ecosystem services Local refers from homestead to system; basin is more IWRM 7

MUSF is user oriented MUSF is a local and user-oriented service approach, applying IWRM principles based on integrated participatory assessment and planning of all water resources and need Servcies refers to provision (water supply, irrigation) and ecosystem services Local refers from homestead to system; basin is more IWRM 8

Countries with MUS Group members Action, training and research activities

MUSF impacts Improving services from 20 to 100 lpcd translates into an additional $200-$400 for household of 5, above the health benefits Investing in intermediate levels of service comes at a financial cost/benefit ratio of 3-8, even when considering additional transaction costs Economies of scale in investments at community level In paddy systems, value of other functions can be over 800 US$/ha Over 1 billion people can benefit from new domestic multiple-use services, and upgrading service levels within existing domestic and irrigation systems MUSF is mainly applied in case studies 10

MUSF real opportunity for MDGs For food security, for domestic, but also for environment, for gender, and ultimately for all MDGs. Growing number of cases show MUSF is possible; yet far from scaled-up, despite positive cost-benefit impacts and market. Not catering for multiple-use and functions is missed opportunity for poverty reduction and sustainability of water services: MUS costs less! MUSF is mainly applied in case studies 11

What are obstacles/solutions ? Governance; particularly local government and top of State Financing; joint financing between public and private Sectoral boundaries; beyond domestic and irrigation; also public and private sectors Institutional coordination Private also includes user financing 12

We shall overcome! Water scarcity and financial crisis leave no choice but for sectors to work together Sustainability of MUSF can be high: Balance between incentives for investments by public and contribution of users themselves High return on investment with higher levels of service Better design (esp. for private sector) Monitoring of performance of services and environmental impact appropriate sharing mechanisms and a comprehensive remuneration of services Crisis also bears risk for more sectoral behaviour Payment doesnt mean full recovery of capital costs – subsidies may be needed 13

We shall overcome! Facilitated multi-stakeholder approaches: to strengthen institutions, rather than creating new ones Develop country visions and policy frame and promote local strategies with clear local context-specific demands! Crisis also bears risk for more sectoral behaviour Payment doesnt mean full recovery of capital costs – subsidies may be needed 14

Quotes from the wrap up panel Best planning is to plan for things that have already happened ! MUSF is here to stay ! MUSF happens in cities !

We have good news: a market of 1 billion, with high potential return on investment and poverty reduction

Thank you