1. Towards a Sector Wide Approach (SWAp) for water sector in Lesotho Prepared by T.W. Sepamo Principal Engineer Water and Sanitation. Prepared for EUWI – Finance Working Group Meeting 20 th August 2008

2. Content Government Objectives of a SWAp The role of Donors The Financing Strategy Issues and Challenges (Obstacles)

3. Government Objectives of a SWAp The Government objectives on SWAp are outlined in the Lesotho Water and Sanitation Policy that was approved in February 2007 as follows; 1.To promote a sector wide approach for water sector management and development in order to facilitate replacement of project-based approach with comprehensive sector wide programmes. 2.To promote optimal use of national and international funding to sector through increased coherence between policy, spending and results and to reduce transaction costs. 3.To improve coordination of water sector planning, programming and activities in order to enhances chances of attainment of development objectives and to facilitate monitoring and evaluation

4. Policy Implementation Strategies are to: a)Strengthen Water Commissioner’s office to enable it play its leadership role in the facilitation of sector wide collaboration, agreements and negotiations, management, planning and reporting framework. b)Review and implement relevant water sector policies in order to facilitate participation in accelerated water resources management and development programmes c)Develop and implement integrated sector programmes that promote coherence between sectoral policy, spending and results through transparency and wider dialogue Government Objectives of a SWAp

5. d)Establish and implement the medium term expenditure framework (MTEF) for both internal and external resources that meet the requirements of the agreed sector programme with harmonized processes and procedures. e)Institutionalize performance monitoring & evaluation system using agreed sector indicators, including MDGs targets and achievements at all levels of implementation f)Establish and maintain a central information management system for the water sector for ease of storage, retrieval and processing information Government Objectives of a SWAp cont.

6. g)Establish and formalize a procedure for donor coordination for effective pooling of resources; and. h)Establish and implement mechanisms for systematic dissemination of information on various aspects of water sector programmes in order to broaden ownership by all stakeholders, clients and beneficiaries. (Lesotho Water and Sanitation Policy - February 2007) Government Objectives of a SWAp cont.

7. The role of Donors A.To support Government efforts to develop systems and processes in order to play its leadership role effectively. B.To align their programmes with the government objectives and avoid duplication. C.To harmonise with and strengthen existing systems, processes and procedures of government. D.To support efforts to establish of effective mechanisms for mutual accountability E.To promote of partnerships in management and development of water and sanitation programmes at various levels Link to Paris Declaration of 2005

8. Sector Programme (EC) PROGRESS ON IMPLEMENTATION SWAP FRAMEWORK Sector Policy (WB) Medium Term Expenditure Framework Ministry of Natural Resources - Water Commission Ministry of Finance and Development Planning 1½ ! ? ++ Process started in June 2007

9. The Financing Strategy The strategy development is opportunity;  To expedite an effective link between the Sector Programme and MTEF budgeting process.  To facilitate a purposeful inter-ministerial dialogue between Ministry of Natural Resources and Ministry of Finance and Development Planning.  To enhance institutionalization of SWAp process and establishment of critical forums for decision-making on emerging issues.  To produce tool that will ensure structured approach to sector financing though the use of FEASIBLE/SWIFT models.

10.  To support prioritization of development targets, investment projects, policy measures to ensure financial sustainability and capacity development programme for water and sanitation sector  To facilitate transparency for sector financing through broader participation of stakeholders in planning, budgeting and reporting for the water and sanitation sector. The Financing Strategy cont.

11. Issues and Challenges (Obstacles) MAIN ISSUES includes: i.To complete the implementation of policy strategies. ii.To establish a common definition of SWAp in water and sanitation sector that leads to adoption of one strategy, one programme and one reporting. iii.To complete and finalize water and sanitation programme by end of 2008. iv.To develop capacity development programme that addresses inadequacies in institutions, organisation and competencies to ensure sustainable development in the water and sanitation sector. v.To establish mechanisms for sustainable collaboration and coordination of all stakeholders.

12. CHALLENGES (OBSTACLES) include: i.Establishing effective Budget Support modality (General or Sector) in the financing sector programme ii.Decentralizing SWAp processes to districts and community councils so as to transform them into concrete outcomes. iii.To Review and do necessary adjustment or alignments to existing institutional set ups by different partners. iv.To harmonize numerous reform process in several sectors to allow for optimization towards national development objectives. v.To have process Champions/Drivers to keep the momentum for the reforms with all the Stakeholders Issues and Challenges (Obstacles)

13. END OF THE PRESENTATION Thank you for your attention