Further supplementary memorandum submitted
by the Department for International Development (DFID)
DFID MALAWI AND DFID NEPAL
1. DFID MALAWI
SUPPORT FOR
WATER AND
SANITATION
According to available data, DFID Malawi has
provided more direct support for Water and Sanitation in real
terms in the last three years than it did in the previous ten.
Its support to the sector has changed over the years, being increasingly
delivered as an integral part of its Education programme. Its
annual spend (in real terms) on Water and Sanitation for the last
20 years is shown below.
DFID Malawi's advisory capacity for Water and
Sanitation is stronger now than at any time over the last ten
years. It currently has a dedicated Water and Sanitation Supervisor
(grade B2) and an Infrastructure and Growth Advisor (grade A2)
whose remit includes this sector. Between them they have many
years of Wat/San experience, from dealing with small-scale latrines
and boreholes to managing multi-million pound water sector programmes.
DFID Malawi is investing in school water and
sanitation as part of its funding to the education sector (approximately
£2.5 million in water and sanitation alone during the past
three years). This has delivered improved sanitation at 400 schools,
reaching 381,000 pupils, and improved water supplies at 160 schools.
DFID Malawi is supporting WaterAid to complete
the national digital water point mapping, and is considering building
on this work to support WaterAid's influential role in strengthening
policy, accountability and equity.
DFID Malawi is co-financing Concern Universal
on an EU Water Facility project providing access for 110,000 people,
delivering 550 boreholes, household sanitation and building capacity
in two under-served districts. It has also agreed to co-finance
another larger-scale NGO consortium bid if it is successful with
the EU Water Facility.
DFID Malawi is reviewing its support to water
and sanitation as part of the new country assistance programme.
This will take account of other donor funding, including the proposed
World Bank support to the National Water Development Plan 2 (NWDPII).
The Bank's Malawi Office is bidding to the Bank's Africa Catalytic
Fund (ACGF) for $25 million for the NWDPII. If they are successful
this will both increase DFID funding to the sector and provide
additional aid to Malawi.
DFID Malawi will directly spend approximately
£1 million on Wat/San in 2006-07. This is in addition to
DFID's core contributions to the multilaterals' spending on Wat/San
in Malawi, which equates to a further UK contribution of £0.25
million this year; likely to increase to around £1.4 million
(plus £2.6 million if the ACGF bid is successful) once NWDPII
is agreed.
It is true that only a small percentage of DFID
Malawi's annual budget is spent on Water and Sanitation. This
reflects the priority-setting process at a country level; the
fact that Malawi's progress on other MDGs (eg Health and Education)
is further off track; and the fact that Malawi is on track to
meet the water and sanitation MDG targets. Water coverage has
increased from 40% to 73% and access to sanitation from 47% to
61% since 1990.
DFID Malawi will continue to use its influence,
advisory capacity and some strategic interventions to help ensure
that the substantial investments from the IFIs and other donors
which the UK helps to finance are targeted equitably and sustainably.
2. DFID NEPAL
SUPPORT FOR
WATER AND
SANITATION
The 2004 Country Assistance Plan for Nepal stated
that, provided the policy environment was conducive, DFID would
scale up in Nepal and pursue more programmatic approaches. The
takeover by the King in February 2005, autocratic rule and the
intensification of conflict, seriously constrained these objectives.
Our allocation decreased from £3.7 million in 2004-05 to
£1.8 million in 2007-08 (Annex 1).
Despite the difficult operating environment,
DFID remained engaged in the rural water supply and sanitation
sector by providing support via NGOs at reduced levels and continued
support for a monitoring and evaluation unit within the Ministry,
and by participation at a technical level in the local Government-led
stakeholder group.
Consultation with civil society was difficult
during the King's rule, but the constraints on the DFID budget
and the implications for programmes in water were explained fully
to Government and to our NGO partners in the sector. Nepal's aid
framework for 2005-06 remained at the same level of disbursement
as the prior year (£32 million)—the original framework
had been £40 million. This is due to the UK's position after
the King's takeover of executive power, and the real competition
for resources in DFID's Asia Division as a consequence of the
Asian tsunami and earthquake in Pakistan.
The Peace Accord signed on 21 November 2006
opens up a new window of opportunity. Nepal has a strong case
for scaling up. DFID is in the process of developing an Interim
Country Assistance Plan within which we will be considering options
for our future engagement in water.
Status of Water Sector and DFID engagement
Government statistics show that water supply
coverage has increased from 46% in 1990 to 81% in 2005. Figures
may vary but the coverage is probably at least 60%. Quality is
a concern. Sanitation coverage increased from 6% in 1990 to 39%
in 2005. Nepal is likely to meet the water supply MDG but not
the sanitation target.
The Department of Water Supply and Sanitation
(DWSS) implements government programmes, including the Asian Development
Bank (ADB) project, and the World Bank channels funds via a parastatal
agency. The ADB's and World Bank's annual allocation for rural
water supply and sanitation is nearly £2 million[30]
and £3.6 million[31]
respectively. DFID has supported three NGOs, Nepal Water for Health
(NEWAH), Gurkha Welfare Scheme (GWS) and Helvatas (Swiss NGO).
The UK's commitment to this area is ongoing: funding for NEWAH
and GWS has been extended for a further year to March 2008 and
our support to Helvetas will continue to March 2009. Our partners
have implemented 800 water supply and sanitation schemes during
1999-2005, for more than 400,000 marginalised people all across
the country—more than 10% of the national target.
The DFID Programme in Nepal is very thinly stretched
across a wide range of programmes, including all the main sectors
of roads, education, HIV/AIDS, health, agriculture, support to
rights and democracy, and a variety of programmes to strengthen
governance. Alongside this we are putting considerable time and
investment into making the current fragile peace process work.
As we move forward and consider our future focus, it is likely
that future engagement in the water sector will be done through
the World Bank or the ADB, agencies to which DFID provides core
funding and which are major players in the sector. World Bank
spending on rural water and sanitation will increase to USD 6.85
million in 2007 from USD 3.24 million in 2006, (and USD 1.3 million
in 2005), while the ADB have committed USD 100 million in 2007
to rural infrastructure more generally. Our engagement with other
major donors will reduce transaction costs for DFID and the government.
It will also help movement towards the sector-wide approach, with
fewer funding agencies being directly represented. The challenge
for any future engagement will be to enable government to take
a stronger role in providing essential water supply and sanitation
services to its people.
Advisory capacity has been re-organised but
DFID Nepal continues to ensure that water issues are managed by
an in-house infrastructure adviser with the support of Social
Development and Governance Advisers, and a Programme Officer.
We will consider seconding an adviser to one of the partner organisations
(Ministry, World Bank, ADB) for taking forward sector coordination.
30 ADB's project duration is 2004-10 with total allocation
of $35.7 million (£18.21 million). Back
31
WB's project duration is 2005-09 with total allocation of $35.4
million (£18.06 million). Back
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