AfDB Partnerships Forum24 March 2010

by

Sering JALLOWManager, Water & Sanitation Division

North, East & South RegionOIC, Water & Sanitation Department &

African Water Facility

African Development BankWater Sector Initiatives

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Regional Context

Africa:Drinking water coverage trend

56

64 68

78

0

20

40

60

80

100

Co

vera

ge (

%)

1990 2006 2015

Trend required for MDG targetDrinking water coverage trend

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!

Bank IWRM Policy, Strategic Focus and Key InitiativesBank IWRM Policy, Strategic Focus and Key Initiatives

IWRM POLICY

FRAMEWORK

STRATEGIC FOCUS 2008-2012

MTS

KEY INITIATIVES

Social + Economic + Environmental uses

Cost recovery, PSP, Gender

Capacity building, regulatory policy env.

Participation, Transboundary cooperation Increase irrigation and hydropower financing Focus on poorest 65% in rural areas Support urban, peri-urban, small-medium towns Promote Transboundary WRM Support the enabling environment to attract more resources African Water Facility

Rural Water Supply and Sanitation Initiative

Multi-donor Water Partnership Program

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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 2009

65 active projects in 35 countries. 25 projects are rural. Total volume of about US$2.37 billion (UA 1.52 billion).

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

1967 -2002 *

2003 **

2004 2005 2006 2007 2008 2009 IOP 2010

IOP 2011

IOP 2012

IOP 2013

Total Non-RWSSI approved (UA) Total RWSSI approved (UA)

• 74 new operations planned for 2010-2013 with UA 3 billion (US$ 4.5 billion) ADB Group financing.

• Financing expected to more than double between 2009 and 2013

• AfDB WSS financing increased from UA 661 (Euro 724) million in ADF X to UA 1.0 (Euro 1.1) billion in ADF XI period

• Could reach over UA 2.37 (Euro 2.6) billion in ADF XII period

• Seeking co-financing opportunities

Key Highlights - Financing and Portfolio..…

Rural Water Supply and Sanitation Initiative (RWSSI)Rural Water Supply and Sanitation Initiative (RWSSI)

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Goal To reduce poverty through attainment

of the MDGs by accelerating access to improved rural water supply and sanitation (WSS) facilities in a sustainable manner

Objective:

To ensure that 80% of the rural population in Africa has access to safe drinking water supply and sanitation by 2015

Strategy

Demand Responsive Programme Approach, building partnerships, fast tracking, appropriate technology, Mobilize more funds

Cost US$ 14.2 billion

Water Supply Sanitation

RWSSI Trust FundRWSSI Trust Fund…..…..

The RWSSI Trust Fund provides a channel for Donors:

To scale up their financing for the water sector

to earmark resources to the Bank for the financing of RWSS Programmes.

to support countries where they do not have a strong presence

RWSSI TRUST FUND Established in 2005 Contributions of approximately Euro

116 million: France (40M), Denmark (30M), the Netherlands (20M) Canada (24M) Switzerland (2.16 M)

Governance Donors form the Steering

Committee Steering Committee

approves annual work programme

ADB Board approved Individual projects

RWSSI AchievementsRWSSI AchievementsPhase I Results (With Bank + RWSSI TF Phase I Results (With Bank + RWSSI TF financing)financing)

25 programmes approved for total US$ 2.36 Bn. Bank financing close to US$1.0 bn and over US$1.3 bn leveraged. About US$ 75 million funding from RWSSI Trust Fund

Rural 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 million

Investments will provide 32 million and 30 million people with water supply and sanitation respectively by end 2010

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Higher priority given to RWSS

Programmatic approach in 60% RWSSI interventions

Increased use of country systems

Enhanced community action; Gender issues mainstreamed

Coordination and harmonization of donors

Quicker programme development and start up

RWSSI AchievementsRWSSI Achievements

Phase II Revised Financial Requirements Phase II Revised Financial Requirements

Phase I2004-2007

Phase II2008-2010

Phase III2011-2015

Total

AfDB 0.76 1.84 2.43 5.03

Other Donors 1.85 3.06 4.06 8.97

Gov’t & Com’ties 0.60 1.22 1.62 3.44

Total 3.21 6.12 8.11 17.44

Donors are invited to partner on RWSSDonors are invited to partner on RWSS

1. Contributions to RWSSI TRUST FUND1. Contributions to RWSSI TRUST FUND

2. Increase BILATERAL FUNDING 2. Increase BILATERAL FUNDING

0

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10000

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14000

16000

18000

20000

Phase I Phase II Phase III

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ount

in 0

00 m

illio

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Financing Requirements

Total original

Total Revised

AfDB Original

AfDB Revised

3. Increased ADF RESOURCES3. Increased ADF RESOURCES

AFRICAN WATER FACILITY• Established by AMCOW to assist RMCs to mobilize and apply

resources to finance water development activities in Africa

• Operations guided by a Governing Council – Members from AMCOW, donors, African Union, UN-Water/Africa and

AfDB, chaired by AMCOW

• Hosted by ADB

• AWF Special characteristics– A home grown African initiative– Demand driven– Innovative & Catalytic projects with variety of means & approaches– Broad Eligibility: Central/local government, NGOs, RBOs, RECs– Grant funding for small & medium size project: €50,000 to 5 million– Flexible & fast tracking

AWF OPERATIONAL AREAS

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 investments

• With 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.

CURRENT STATUS

Results• Follow-on investments leveraged

• Botswana €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 expected

• High level dialogue: Delivering on Water Security Commitments• Pan African Monitoring and Evaluation Systems

Portfolio• Project portfolio at 61 projects valued at €69 m • Support to several strategic AMCOW initiatives: E.g., Water for Growth

Resources• Pledges of €132 m since inception (cash and in kind) from 12 donors incl.

African countries• Of the €160 m required to implement the 2010-2012 program, €59 m have

been committed, leaving a gap of €101 m to be secured.

• Donors are invited to join the AWF.

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The funds also assist the Bank in :-• Building capacity of water professional staff

• Management of water data and information

• Assessing and disseminating best practices

• IWRM outreach and knowledge sharing • Promoting effective collaboration and coordination in the water sector in Africa

Goal: “..promote planning of water programs within an integrated framework in the Bank and in countries”

Participating Donors: Denmark (DK 15 Million), Canada(CAD 5 Million), Netherlands (USD 5 Million)Pledged Funds: About EUROS 9.08M

Over 22 key studies and knowledge activities undertaken.

Objectives operationalize the Bank's IWRM

Policy create awareness on and

enhance commitment to IWRM support the coordinating

efforts of the Bank with respect to the implementation of the AWV, MDG targets..

Target: Bank, RMCs, Regional and sub-regional organizations.

Water Partnership Program (WPP)

WPP AchievementsWPP Achievements African Water Facility established, contributing to sector development

RWSSI launched, contributing to the attainment of the WSS MDG targets Supporting Africa’s participation in WWF and AWW

Key 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 2010)

Guidelines for Water Harvesting

Handbook on Wetlands Assessment

Guidelines for WSS provision in Schools Water and Poverty Linkages in Africa

Agricultural Water Development in Africa

WPP 2010 Focus – Key Areas of Intervention

Promoting and scaling up IWRM though collaborative strategic planning with key regional partners

Improving delivery of water supply and sanitation services in fragile states

Enhancing private sector participation in Bank funded water projects

Facilitating access to innovative financing mechanisms for the water sector

Strengthening dialogue and joint actions on water security

Increasing Africa’s capacity to achieve food security through support to agricultural water development partnerships

WPP Priorities in the Medium-TermWPP Priorities in the Medium-Term WPP will :-

continue to strengthen the IWRM implementation capacity of AfDB and RMCs

enhance RWSSI implementation through knowledge management

promote water sector knowledge in the Bank including Field Offices to strengthen operational capacity and address contemporary sector challenges including Bank priorities

Improving delivery of water supply and sanitation services in fragile states Enhancing private sector participation in Bank funded water projects Facilitating access to innovative financing mechanisms for the water sector

Leverage greater impact and effectiveness of knowledge management activities through strategic partnerships with specialized water sector institutions

Euro eight (8) million will be required to accomplish the WPP medium term Programme.

Donors are invited to join the WPP

Financing water for growth

Ministerial Forum on Financing Water Security in Africa

2nd International Conference on rural water

supply and sanitation

29th May 2010 (TBC)

Conference Announcement

Objectives & Expected Outcomes

Objectives1)To provide a platform for critical pan-African dialogue

2)To reach a shared appreciation for the key role water plays in enhancing national development

3)To renew commitment among partners towards scaling up efforts to support the implementation of RWSSI as Africa’s flagship initiative

1) Enhanced appreciation of the water-growth nexus and associated benefits from investing in Africa’s water security needs.

2) A clear roadmap for how national governments may accelerate economic growth

3) National commitments to allocate funding and establish structures needed to implement the finance-related actions within the Sharm-El Sheikh FFI.

4) Renewed commitment to scaling up financing for RWSS delivery in Africa and within the RWSSI framework

Expected Participation

250-300 high level participants comprising:

African ministers of Finance

African ministers of Water

Donor representatives

Academic Institutions

Water Sector Partners

Financing Institutions

Private sector

The media

Contacts Overall Conference coordinator: Mr. Arthur Swatson

a.swatson@afdb.org , Tel: +216 7110 2789 Thematic preparation: Mr. Amhayesus Metaferia

a.metaferia@afdb.org, Tel.: +216 7110 2622

Media & communications: Mr Sören Bauer

s.bauer@afdb.org, Tel: +216 7110 2962

Participation & Contacts

THANK YOUTHANK YOU