NWSSIP and the way forward… Coordination, harmonization and alignment in the water sector

NWSSIP and the way forward…Coordination, harmonization and

alignment in the water sector

Quo vadis?

Meeting of NWSSIP Signatories

Sana’a, 27th September 2005Royal Netherlands Embassy

Ton NegenmanRNE First Embassy Secretary – Water

Gerhard RedeckerDirector KfW Office Sana’a

NWSSIP and the way forward…

Part 1: Coordination efforts in the sector

NWSSIP and the way forward…Relevance of the donor support declaration of Jan 2005

• Honored national efforts and ownership• Aligned donors to strategic elements and visions and

highlighted important policy issues• Called for strong sector leadership and effective

partnership• Contributed significantly to NWSSIP’s approval by

Council of Ministers in May 2005• Opened a window of opportunity for increased sector

contributions by the GoY• Pointed the way to a harmonized sector support

NWSSIP and the way forward…Key messages of the donor support declaration of Jan 2005

“Through the Declaration of Support the signatories wish to express the high importance they attach to a strong leadership role of the Government of Yemen in the co-ordination of the assistance to NWSSIP, and declare their readiness to assist the Government in building its capacity in that respect”

“The signatories seek to forge much closer donor-government and donor-donor coordination and urge the Government to set an agenda for co-ordinating, harmonizing and aligning assistance to the sector based on NWSSIP”

NWSSIP and the way forward…Donor structure in the water & sanitation sector

1) not a NWSSIP declaration signatorySource: KfW / own elaboration / August 2005

GER WBNL

UK

JAP

FRA

EU

UNDP

UNICEF

Donor Core

Group

Bilateral Donors

Multi-lateral Donors

NWSSIP Donor Declaration Signatories

INGOs

Regional Funds

USA 1)

Extended Donor Group

NWSSIP and the way forward…Arrangements for donor coordination in the water sector (1)

Donor local coordination (DLC) (proposal)• Entrusted to donor core group (WB-NL-G) • Alternates between RNE and KfW every 6 months• First round assigned to RNE, starting September 2005 • NWSSIP declaration signatories mandate DLC / DCG for

sector dialogue • DLC / DCG keeps NWSSIP declaration signatories and

wider donor group informed• DLC liaises with MWE, agrees with MWE on donor-

government meeting agenda• DLC spearheads policy dialogue leading to SWAp in the

water sector


Donor core group (DCG)• Enshrines the local donor coordination role• Meets monthly and on call, so far 2 times • Receives proposals for agenda from all interested

parties • Distributes minutes of meeting • Liaises with MWE and related authorities• Invites resource persons for theme specific meetings• Coordinates information exchange on incoming missions • Ensures distribution of relevant documents for reference

or comments (TOR, studies, proposals, strategies etc)


NWSSIP declaration signatories (NDS)• Meet every 6 months• DLC receives proposals for agenda from all interested

parties • DLC prepares agenda and distributes invitations• DLC / DCG or invited resource persons make

presentations on specific issues of interest • DLC acts as secretary and moderator • DLC prepares and distributes minutes of meeting


GoY - extended donor group (EDG)• Meetings every 6 months (alternating with NDS

meetings)• MWE invites and sets agenda, venue MWE• Dpty. Min. W+S acts as secretary, prepares and

distributes minutes of meeting• Participation of MoPIC and MoF, eventually MAI • Information exchange platform for sector developments

and specific project issues• Link to overall harmonization and alignment


Sub-sector Working Groups Rural Water and Sanitation (RWS)• Active since 2002• Hosted by GARWSP or alternating venue• Chaired by GARWSP• Includes donors, public authorities, local authorities,

NGOs and private sector institutions and enterprises • Clear focus on coordination and information in relation to

active projects and contributions • Detailed TOR available


Sub-sector Working Groups Integrated Water Resources Management Group

(IWRG)• First meeting on 28th September 2005• Hosted by GTZ, later alternating venue• Chaired by NWRA • Includes donors, public authorities, local authorities,


active projects and contributions • Detailed TOR under revision


Sub-sector Working Groups Urban Water and Sanitation Group (UWS)• Creation envisaged for end of 2005• Hosted by KfW/GTZ, later alternating venue• Chaired by MWE and / or NWSA • Includes donors, public authorities, local authorities,


active projects and contributions • Detailed TOR still not defined


Yemen Groundwater Forum (YGF) • Creation envisaged for November 2005• Alternating venue• Rotating chair, secretary provided by NWRA• Includes donors, public authorities, local authorities,

NGOs, private sector institutions and enterprises, research institutions, water resource practitioners

• Focus on networking, information exchange platform, policy debate, sector observation and evaluation

• Detailed TOR being elaborated; need clear distinction from IWRG


Capacity Building Committee (HRD) • Creation proposed by MWE in June 2005• Chair and venue MWE• Assessment / inventory of sector-wide capacity building /

HRD / Training / staff development efforts• Development of an integrated sector HRD concept and

strategy, incl. potential for a training fund• Follow-up on HRD effectiveness• Includes donors and MWE with its related authorities • First activity (assessment / inventory) entrusted to GTZ


Thematic Working Group – Water (TWG)• Formally attached to MoPIC Millennium Project Unit• So far limited action (MDG needs assessment for water

and sanitation sector) • Otherwise poor performance and lack of systematic

guidance and follow-up • Needs reorientation and redefinition of terms of

reference


Development Partnership Group (DPG)• Initiative of AHA-Unit in MoPIC• So far no clear vision or objective • Needs harmonization with all other sector related

coordination efforts to avoid duplication and redundancies

• Potential complement or substitute for non-operational TWG


Part 2: Key issues of sector dialogue

NWSSIP and the way forward…Key issues of ongoing sector dialogue (1)

Water in the 3rd Development Plan for Poverty Reduction

• Clarify water sector scenario in DPPR (NWSSIP or MDG needs assessment)

• Need to integrate mid-term expenditure framework • Information on status of plan• Clarify links and interdependencies with country and / or

sector strategy documents / plans / papers of the various donors


Impact of economic reform measures on water sector

• Impact on agricultural cropping pattern and water demand management

• Need for tariff increases/adjustments in water utilities • Impact on poverty in general and access of the poor to

water in particular• Activities:

– PSIA in late 2005 (ready to go)– Groundwater incentive study starting 2005 (ready to go)– Household Budget Survey (ongoing)– Pro-poor tariff study (proposed)– Various water&conflict studies (need coordination)


Water sector budget• Status of 2006 proposed budget and trend compared to

2004 and 2005• Clarify sub-sector budget allocation incl. recurrent

expenditure• Clarity on water sector budget beyond MWE and related

authorities (baseline for NWSSIP compliance monitoring)

• Need for MTEF from all donors• Need for some predictability of local resources based on

economic scenarios • Increase local cost sharing

NWSSIP and the way forward…Sector Investment Budget 2006 x YR 1000

Authority GoY Cost-sharing

External Self-finance

Total

MWE 327,000 327,000(1%)

GARWSP 3,400,000 50,000 500,000 3,950,000(15%)

EPA 164,000 164,000(1%)

NWRA 60,196 154,800 925,000 1,139,995(4%)

NWSA 2,296,000 104,000 346,000 2,746,000(11%)

Sana’a LC 1,440,000 680,000 3,600,000 5,720,000(22%)

Aden LC 1,300,000 200,000 1,240,000 200,000 2,940,000(11%)

Ta’iz LC 1,347,000 23,000 95,000 1,465,000(6%)

Hodeidah LC 478,000 276,000 1,045,000 144,000 1,943,000(7%)

Mukalla LC 1,210,000 140,000 1,350,000(5%)

Seyun LC 553,500 441,000 1,500,000 2,494,500(10%)

Ibb LC 430,000 250,000 600,000 1,280,000(5%)

Hajjah LC 300,000 300,000(1%)

Al Bayda LC 354,000 11,000 365,000(1%)

13,659,695 2,318,800 9,851,000 355,000 26,184,495(100%)


Important sub-sector issues• Finalize rural water strategy• Need for an urban water and sanitation strategy• Process for selection of towns for urban W+S

interventions • Regulatory framework for rural and urban water (what

has been done and what needs to be achieved)• Regulator for urban water & sanitation utilities• How to increase private sector participation (Sana’a LC

management contract, Taiz LC technical assistance, Taiz LC desalination, Aden USP, other)


Water resource scenario• Responsibility for irrigation water resource with NWRA

needs political backing • Water savings: what are the measures and what did we

achieve? • Well licensing: what are the enforcement measures?• How many monitoring wells are actually functioning?• Situation of basin water management plans (what

support is needed?) • Need for fast actions in water stressed basins and in

utilities which have run into supply crisis


Program aid for the water sector (PAWS)• Need to increase aid effectiveness is common

understanding and cast in many international agreements

• Harmonize donor visions for potential SWAp in the water sector

• Clarity on role of MoU as a framework agreement similar to NWSSIP Donor Support Declaration or its natural continuation

• Need for a milestones approach which defines elements and roadmap for potential entry points for all donors

• NWSSIP is guiding, but needs to be a dynamic process


Water summit• No fund pledging event• What are GoY and donor expectations?• GoY and donors to discuss key policy issues in the

sector dialogue (see above)• Decision on SWAp / PAWS milestones and roadmap

expected (!)• Who is the driving force in GoY (MWE; MoF; MPIC) ?• Who is driving force among donors (donor group to give

a clear mandate) ? • Define place, time and financial contributions• Define content, instruments and preparation needs


Part 3: Preparing for program aid

NWSSIP and the way forward…Key components of an effective SWAp… and progress so far

Hub =NWSSIP

(Sector Policy)

Process f.

dialogue & consul-

tation

Sector MTRF & MTEF

Perform-ance monitoring system

Stake-holder

involve-ment

Funding arrange-ments

Harmo-nized

systems

participatorystrategy

formulation

donor sup-port decla-

ration

donor coordinationmechanism

donor-GoY coordin. at sector level

MoPICAid Harmon.

& Alignmt

Sub-sectorworking groups

UWS

IWRG

RWS

YGF

DevelopmentPartnership

Group

MoPICMP / MDG

Unit

ThematicWorkingGroup

DCG

NSG

EDG

MoPICPRS Unit

PAWSagree-ment

MoU Framework

Milestoneconcept

transparentbudget

EffectivePFM system

procurement system

Mid-termResults

Framework

Mid-term ExpenditureFramework

GermanMTEF

NWSSIP Inv. Program

MP / MDGNeeds Ass.

Ind. Project targets

NWSSIP Action Plans

NWSSIP M&E Unit

PIIS

Staff & TA

benchmarks

All donorsMTEF

NWSSIP and the way forward… Existing funding arrangements

• Investment budget NWRA 2005, • Spending categories;• NWRA’s 2005 activities;• Local and external funds;• Where is the money and the accountability?• Consequences of present funding

arrangements;• Program Aid approach.

2.1.1. Buildings

2.1.6. Studies, project design

2.1.2. Furniture & Office Equipment

2.1.3. Transport

2.1.9. Wages and General Expenses

2.1.8. Construction

2.1.7. Maintenance

2.1.4. Equipment

2.1.5. Other acquisitions

Investment Budget NWRA 2005Acquisition of fixed capital assets

Activity

Studies of water basins Sadah, Rada, Tihama

Capacity Building project - UNDP

Geo-Environmental Info project IWRM – BGR

National Strategy for Water Legislation

National Hydrometeorological Network

Sadah Water management - KfW

Groundwater and Soil Conservation – World Bank

Support and Organizing NWRA

Mixed bag of own and project activities

Local

Foreign

Total

Aid and cost sharing

Where is the money and where is the accountability?

Wages and general expenses 90% of budget

GoY: 100 m YR

Donors: 316 m YR

GoY accounts only for 52 m YR which is 12.5% of total investment budget

Consequences of the project approach:

•Projects dominate over authentic program lines of NWRA that therefore cannot become visible;

•Distorted planning and budgeting;

•Limited accountability

•Limited ownership

•COCA only audits GoY contribution

•MoF cannot oversee investment budget and only sees lots of Wages and General expenses

•MoF therefore ties recurrent budget NWRA

PAWS-NWRA-2005Capacity and Institution Building: Component 1

Strategic Planning: Component 2Basin Level Water Governance and Co-management: Component 3

Audits: Component 4

NWSSIP and the way forward… NWRA Annual Plan new style

Component 1: Capacity and Institution Building1.1 Fully functional NWRA with professional image;1.2 Strengthened mechanisms for improved sector coordination;1.3 Improved capacities in water resource planning;Component 2: Strategic Planning2.1 Functional water monitoring network;2.2 Occasional studies program;2.3 National Water Resources Information System;2.4 Water quality monitoring, assessment and control;Component 3: Basin Level water Governance and Co-Management3.1 Participatory finalization of BMWPs;3.2 Implementation of currently prepared BWMPs;3.3 Preparation of by-laws and water rights structure;3.4 Enforcement of water legislation;3.5 Strengthened community based structure/basin committees;3.6 National Public Awareness Campaign;Component 4: Audits4.1 Financial Audit4.2 Value for Money Audit

NWSSIP and the way forward… Discussions and advances on PAWS MoU Framework (1)

• Drive for change of RNE interventions in the sector discussed with MWE in February 2005;

• Feed back from other donors that their possibilities for earmarked sub-sector budget support (Virtual Fund) were limited;

• Elements of new approach worked out in March/April;

• First version of Program Aid Water Sector (PAWS MoU) in May 2005;

NWSSIP and the way forward… Discussions and advances on PAWS MoU Framework(2)

• Discussion of MoU with MWE, MPIC and MoF in May/June; stalled in July for several reasons;

• 2005 Contribution to NWRA and GARWSP (€ 4 m) approved in June in the modality as proposed in PAWS MoU (with some restrictions);

• Germany and Netherlands discuss and introduce milestone approach in PAWS MoU in September 2005;

• World Bank develops T.O.R for SWAp approach study in September 2005.

NWSSIP and the way forward… …to

Joint Programs and Joint Financing Arrangements in the sector

• Understand the PAWS MoU framework and the milestone process approach;

• Agreement on the process that describes clearly the steps, responsibilities, and a timeframe leading to:

1) the signing of the PAWS MoU by all; 2) the satisfaction of the donor requirements

to join sector budget support.

NWSSIP and the way forward…Guidance from the meeting on:

1. Sub-sector financing and priorities 2006;

2. Donor coordination mechanisms3. Coordinated WB CAS with Water as

the lead issue;4. SWAp/PAWS MoU process;5. Water Summit

NWSSIP and the way forward… Coordination, harmonization and alignment in the water sector

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Transcript of NWSSIP and the way forward… Coordination, harmonization and alignment in the water sector