SUSTAINABLE FINANCING OF TRANSBOUNDARY WATER …
Transcript of SUSTAINABLE FINANCING OF TRANSBOUNDARY WATER …
CAMBODIA LAO PDR THAILAND VIETNAM
SUSTAINABLE FINANCING OF TRANSBOUNDARY WATER COOPERATION IN BASINS – CASE OF MRCWORLD WATER WEEK
28 AUG 2019, STOCKHOLM
By Anoulak Kittikhoun and Santi Baran
MEETING THE NEEDS KEEPING THE BALANCE
FUND CONTRIBUTION OPTIONS
• In-kind / monetary Contribution
• Fixed % • Example:
• Criteria Base Formula• Example:
1. Average flow (m3/s)
2. Irrigated area (million ha)
3. Population (million)
4. Per capita GDP (US$)
5. Catchment area (km2)
• Fisheries
• Water use
• Investment
• Equal Contribution• Example: 25% each
20% 20% 30% 30%= 100%
MEETING THE NEEDS KEEPING THE BALANCE
MRC DEVELOPMENT
Established Basket Fund
2016
$65 Million / 5 years
Partly Core Functions60+ Staff
2030
Fully Core Functions50+ Staff
Self-finance
1995
Project
100+ Staff
1995 Mekong Agreement
Organizational Reform
Financial Reform
2000
Programme
$120+ Million / 5 years
DPs funding MCs contributed to
operation cost
200+ Staff
2010
1st MRC SUMMIT
MEETING THE NEEDS KEEPING THE BALANCE
Financial Situation & Organizational Reform
Streamlined arrangements focused on core functions
MRC Secretariat Basket Fund
• Regional technical coordination
• Implementation of the Strategic Plan
• Implementation of the Procedures
• Implementation of Centralised Activities
• Operation CostSTAFFING
(Reducing over time)
2030DEVELOPMENT
PARTNERS
CONTRIBUTION
(Declining over time)
MEMBER
COUNTRIES
CONTRIBUTION
(Increasing over
time)
2000
202640 Staff
Self-Finance
2015
200+
201660+
50+
100+
2016
2015
$65 Million
$120+ Million
2010
1st
SUMMIT 36%100%
64%
2019
MEETING THE NEEDS KEEPING THE BALANCE
Equal Contribution for Member Countries
Agreed option: Contribution percentage move 1% every 3
years from 2019
Basis for Equal Contribution:
• Increasing member country cooperation
• Country experience of MRC implementation
• Rising technical and financial capacity
• Growing economies and populations
• Mutual understanding, ownership and self sustainability
Option 1: Apply the 2015 formula in reversed orderOption 2: Apply the fix ratios (23% Vs 27%)Option 3: with the exception of 2016-2018 will be as below:MCs never missed
payment
MEETING THE NEEDS KEEPING THE BALANCE
Value for Money Tools
High
3
2
1
Low 1 2 3 High
Achievement
Co
st
Cost & Benefit Analysis
Low Valuefor Money
High Valuefor Money
Costly
PoorIntervention
Reduce Cost
Increase Achievement
Reduce Cost & Increase
Achievement
Invest & Implement
• High Disbursement and High Completion: 7 Activities have used most of its budget and completed most of the work. These activities are progressing as planned.
• Low Disbursement and High Completion: 15 Activities have completed most of the work but has a large budget remaining. They have the potential to reallocate their budget to other activities.
• Low Disbursement and Low Completion: 63 Activities have not completed the majority of the work and used little budget. Need attention to urgently accelerate implementation in the next 7 months.
• High Disbursement and Low Completion: 6 Activities have used most of its budget, but the majority of work is not completed. Need attention to seek additional budget to continue work and justify for overspending.
MEETING THE NEEDS KEEPING THE BALANCE
Challenges to Implementation of Fund Contributions
• Late transfer (although never missed). Explore mechanism if missed the deadline.
•Political goodwill to support consensus on the contribution amount• Sudden and/or faster Development Partner withdrawal• Strengthening and maintaining MC commitment and
contribution•Recruiting and retaining expert and skilled staff • Strengthening LA / NMCS / MRCS coordination and working
arrangements•Maintaining the momentum of the reform roadmap
MEETING THE NEEDS KEEPING THE BALANCE
Thank you!
• Encourage national ownership
• Gather information and ideas
• Value Member Country viewpoints
• Blend and integrate ideas for sustainable financing
• Design & agree on a roadmap