TRACKFIN INITIATIVE:Key findings and lessons learned from the process

INTRODUCTION

• Initial objectives for the TrackFin initiative

• Overall findings from the pilot phase

• Short-term: immediate next steps

• Defining a joint vision for TrackFinMedium-term

Long-term

• Necessary conditions for this vision to take shape

INITIAL VISION (WHO WORKING PAPER – 2012)

Objectives• Define and test a globally accepted methodology to track WASH financing at

national level • Develop a methodology to build WASH Accounts, building upon governments’

statistical systems so as to mainstream data collection • Encourage countries to adopt this common framework to track financing to WASH

either at national level or for a given geographical area

Approach- the methodology is developed:• Jointly by leading sector institutions and other entities in charge of financial

tracking (such as the WB, OECD UNSTAT ) – to develop a “common language” • Iteratively so as to start with simple objectives and develop more complex

approaches (to answer more questions) as we go along • In a modular manner so that it can be adapted to different contexts and be

applicable to local/regional/national levels

• Very strong interest in tracking financing to the sector TF process provides a framework to track/report in a comparable format

• Information on WASH sector financing is available but fragmented and requires significant effort to compile it TF process maps out actors/data sources to draw a comprehensive picture

• When data is unavailable, estimates can be formulated to form an overall vision of sector financing TF process provides suggestions to overcome data gaps and ways to improve data collection in future phases

• Initial results demonstrate that the methodology is applicable but some aspects will be further developed

OVERALL FINDINGS FROM THE PILOT PHASE

• Very strong interest in tracking financing to the sector TF process provides a framework to track/report in a comparable format

• Information on WASH sector financing is available but fragmented and requires significant effort to compile it TF process maps out actors/data sources to draw a comprehensive picture

• When data is unavailable, estimates can be formulated to form an overall vision of sector financing TF process provides suggestions to overcome data gaps and ways to improve data collection in future phases

• Initial results demonstrate that the methodology is applicable but some aspects will be further developed

DATA AVAILABILITY

All 3 countries were able to gather comprehensive financing data, inform key indicators and answer four basic questions :

• What is the total expenditure in the WASH sector ?

MAIN RESULTS AT COUNTRY LEVEL

Brazil (2012) Morocco (2011) Ghana (2012)

Total expenditure to WASH (Mio USD) 26,911 2,219 521

Total expenditure to WASH per capita (USD per capita) 137 69 21

Total expenditure to WASH per capita as a % of GDP 1.2% 2.2% 1.3%

Total expenditure to health as a % of GDP (source: Global Health Expenditure Database)

9.3% 6.3% 5.2%

WASH sector lags behind other sectors

• How are the funds distributed by WASH services ?MAIN RESULTS

Water receives largest share

Less for rural (water and sanitation)

• Who pays for WASH services ?

MAIN RESULTS

Service users are the main contributors

All 3 countries were able to gather comprehensive financing data, inform key indicators and answer four basic questions :

• What is the total expenditure in the WASH sector ?

• How are the funds distributed by WASH services & expenditure types?

• Who pays for WASH services ?

• What are the main channels of funding?

i.e. In Brazil, WASH sector expenditure channeled 60% corporate service providers 17% local Governments/authorities8.1% Federal Government (2012 compared to 5.5% in 2010)

MAIN RESULTS

• At international level

• Update the TrackFin methodology and Guidance document based on the recommendations and lessons learned of this first phase.

• Communicate around TrackFin through international fora and linkages with other initiatives

GLAAS process and High Level Meeting of Sanitation and Water for All WSUP/IRC/Tremolet initiative on the role of public finance for WASH World Water Forum 2015

IMMEDIATE NEXT STEPS

• Modify methodology based on lessons from country testing• Clarify the scope of the exercise + explicitly include hygiene • Refine the classifications: no major changes envisaged • Clarify the use of “financing sources” (i.e. “financing types”) and “financing

units” – and recommend zooming in on the financing of specific financing units that are channelling funding

• Clarify the approaches to “tracking financing” • Cash-flow approach: track financial flows: coming vs. / outgoings • Economic approach: sector revenue requirement vs. non-repayable

financing • Balance sheet approach: focus on the “asset side” – where possible

• Other improvements • Give advice on running the process (e.g. High-level Committee to drive

the process and secure buy-in at the highest level) • Introduce “real-life” examples from the experience gained in WASH

sector in Brazil, Ghana and Morocco • Organising surveys on specific areas (e.g. hh spending for self-supply)

• Make it “more user-friendly”: improve the structure, delete unnecessary material

MAIN POINTS TO CLARIFY IN METHODOLOGY

• Prepare Policy Briefs to communicate to decision-makers on how the data can enable better policy-making

• Use the results for advocacy and improving transparency in the sector

• Identify areas where the approach needs to be strengthened / detailed to produce more policy-relevant information• Promote more regional disaggregation and focus on equity

• Support the development of country-level of information systems and surveys • Organising surveys on specific areas (e.g. hh spending for self-supply) or feed into the design of

existing surveys led by Statistical Offices

• For future exercises: • Identify ways to “institutionalise” the approach at country level, as this is more cost effective in the long-

term (based on “health sector” experience)

• Engage with sector stakeholders as data providers but also as “data users”

• Make the link with progress on access to water and sanitation

AT COUNTRY LEVEL IN PILOT COUNTRIES

AT INTERNATIONAL LEVEL: DEFINING A JOINT VISION

Horizontal expansion: reaching more countries

Verti

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20 countries before GLAAS 2016

More detail in 3 pilot countries

• Organize a new phase of TrackFin with the initial pilot countries, taking into account all national recommendations

• Extend the TrackFin initiative to as many countries as possible (in the context of GLAAS), based on a revised Guidance document.

• Encourage / support other institutions that want to produce WASH-Accounts in other countries (e.g. WSP / World Bank)

• Provide training and capacity building to roll out the methodology

• Identify “key indicators” that we can ask all countries to report on

• Develop a data collection tool to support countries to produce national WASH-Accounts on a regular basis

MEDIUM TERM STEPS

• TrackFin is a data collection and analysis tool for the sector: it needs to be developed in coordination with other global monitoring tools

• Respond to sector’s current priorities: Understand how much is spent and how much is needed for meeting

SDGs (as a baseline for estimating investment requirements) Evaluate whether funding is best used to reduce inequalities Compare spending to service levels’ “markers” to understand the cost-

effectiveness of these investments

LONGER TERM

• Institutional hosting arrangements

• WHO could remain a driver for the initiative (due to the link with GLAAS and the potential to learn and build upon health accounts development) but there would be great advantages in developing a partnership approach to implementation

• A platform could be developed to share documents and results

• Financing requirements and funding sources

• Different visions have different funding implications

• Encourage countries to fund the exercise themselves where they can

• Identify international funders that may be interested in supporting next phases

IMPLEMENTATION ARRANGEMENTS