Memorandum submitted by the African Development
Bank
1. THE RURAL
WATER SUPPLY
AND SANITATON
INITIATIVE
1.1 Background and Objectives
1.1.1 After adopting an Integrated Water
Resources Management (IWRM) Policy in 2000, and developing a Strategic
Plan for the 2003-07 period with great emphasis given to improved
water and sanitation services in rural and peri-urban areas, the
AfDB set the stage for a significant contribution to the water
sector in Africa. To enhance the implementation of its policy
and strategic plan, the Bank embarked on the development and promotion
of regional water initiatives including the "Rural Water
Supply and Sanitation Initiative (RWSSI)"; the "African
Water Facility (AWF)" and the "NEPAD Water and Sanitation
Programme"; as well as the establishment of the "Water
Partnership Programme (WPP)" with its donor partners to strengthen
its capacity to promote integrated water management principles
and practices in the Regional Member Countries (RMCs).
1.1.2 The RWSSI is the largest and most
important of the Bank's water initiatives. It was conceived in
2002 to address the problem of low access to water supply and
sanitation in rural Africa where the majority of the population
is living. It was initiated as one of the Bank's responses to
the challenge of the African Water Vision and the Millennium Development
Goals (MDGs), to address the lack of access to water and sanitation
services for almost 300 million people in rural Africa. The overall
objective of RWSSI is to accelerate access to water supply and
sanitation services in rural Africa with a view to attaining 80%
by 2015, from 47% and 44% respectively for water and sanitation
in year 2000.
1.1.3 The approach adopted for RWSSI is
through mainstreaming the Initiative into government sector programmes,
including support to development of programmes where these do
not exist. Close coordination between government agencies, donors
and other stakeholders is a requisite for country-level operations.
1.2 Financial requirements
1.2.1 The cumulative investment for achieving
80% coverage by 2015 is estimated to be USD 14.2 billion. Of this,
USD 9.7 billion is for providing water supply infrastructure and
associated investments; USD 4.4 billion is for provision of sanitation;
and USD 95.5 million is for programme preparation and other facilitation
tasks.
1.2.2 Three phases of implementation were
considered. The first phase (2004-07) is estimated at a cost of
USD 4.6 billion; the second phase (2008-10) is estimated at USD
4.2 billion; and the third phase (2011-15) is estimated at USD
5.4 billion. The estimated financial requirement for the implementation
of the three phases is summarised in the table 1 below.
Table 1
RWSSI TARGETS
|
| Plan Period | Access rate
(in %) Water
| Access
(1,000 of People)
| Financial Requirement
(USD million)
|
| Water
| Sanitation | Water
| Sanitation |
|
|
| 2000 | 47 |
44 | |
| |
| 2004-07 | 50
| 50 | 82,533
| 104,820 | 4,556
|
| 2008-10 | 66
| 66 | 86,924
| 80,612 | 4,252
|
| 2011-15 | 80
| 80 | 107,287
| 109,460 | 5,397
|
| Total | |
| 276,744 | 294,893
| 14,205 |
|
1.2.3 The following financing plan was proposed:
(i) 30% of the requirements to be met through the ADF
and ADB resources;
(ii) 50% by multilateral and bilateral donors, including
the RWSSI Trust Fund;
(iii) 15% by the Governments; and
(iv) 5% by the communities.
1.2.4 The RWSSI strategy involves:
— Raising awareness about the Rural Water Supply
and Sanitation situation in Africa;
— Mobilization of more funds from ODA (Monterrey),
RMCs, NGOs, communities;
— Adoption of Fast Track Mechanisms for preparation
and implementation of national RWSS programmes;
— Adoption of Demand Driven Programmatic Approach
as opposed to multi-project approaches;
— Increasing attention to Sanitation focusing on
hygiene promotion and health education;
— Emphasis on capacity building for decentralized
Government institutions, communities, private sector and artisans;
— Ensuring Beneficiary Participation, especially
women, in the design and implementation of programmes within an
IWRM context; and
— Assuring Sustainability through promotion of Appropriate
Technology based on beneficiary consensus, ease of implementation,
local knowledge for their operation and maintenance.
2. THE ADB GOUP
ACHIEVMENTS
2.1 Water supply and sanitation
2.1.1 So far, the Bank has made significant contribution
to the development of the water supply and sanitation sector (Water
for agriculture and hydropower not included), with a commitment
of more than USD 4 billion by end 2006, representing about 7.7%
of total Bank approvals since 1967. Furthermore, the number of
water sector operations and the associated financing over the
last five years have steadily increased relating to other sectors
financed by the Bank. As shown in figure 2.1, total amount approved
or to be approved over the 2003-07 period (five years) is almost
70% of the total amount approved from 1967 up to 2002 (35 years),
with the average annual financing, increasing almost five times
during the same period, moving from US$ 67 million per year to
US$ 330 million a year.
2.1.2 In July 2006, following the implementation of a
new operational structure, the Bank established for the first
time a dedicated Water and Sanitation Department (OWAS) which
will enhance capabilities for coordination of water and sanitation
sector activities in the Bank. OWAS will contribute to the Bank's
mission, which is to promote broad-based economic development
by playing a triple role of Financier, Advisor and (Strategic)
partner though infrastructure and private development and investment
at both national and regional levels.
2.2 The ADB contribution to the RWSSI achievements
2.2.1 Since the Bank started the RWSSI financing in 2003,
it has approved 13 RWSSI programmes and projects for a total financing
of USD 546 million (2003: 36 million; 2004: 34 million; 2005:
231 million; and 2006: 235 million). It is expected to reach about
USD 803 million by end 2007 for 19 RWSSI programmes and projects.
Table 2 and figure 2.2 below shows the details of annual RWSSI
approvals, compared to the total approvals for the water supply
and sanitation.
Table 2
|
| ADB Group Financing: Water & Sanitation Sector*
|
| 1967-2002 Total
AmountYearly
Average
| 2003**
| 2004
| 2005
| 2006
| Est 2007 | 2003-07 Total
AmountYearly
Average
|
| Total
Amount
| Yearly
Average
| | | |
| | Total
Amount
| Yearly
Average
|
|
| Total Amount approved (USD million) | 2,396
| 67 | 390
| 171 | 288
| 316 | 483
| 1,649 | 330
|
| Total Non-RWSSI approved (USD million) | 2,396
| 67 | 354
| 137 | 57
| 82 | 216
| 846 | 169
|
| Total RWSSI approved (USD million) | 0
| 0 | 36
| 34 | 231
| 235 | 267
| 803 | 161
|
| Total Nb of operations | 187
| 5 | 7
| 7 | 7
| 8 | 12
| 41 | 8
|
| Nb of RWSSI operations | 0
| 0 | 2
| 2 | 4
| 5 | 6
| 19 | 4
|
|
* These figures include neither hydropower nor irrigation projects nor abandonned projects.
** These figures for 2003 include a Sector PBL for Morocco amounting to UA 176 million.
|
2.2.2 The already approved RWSSI programmes and projects
will provide safe water to additional 25 million rural people
and sanitation facilities to close to 24 million people by 2010.
Furthermore, when all planned approvals under ADF X have been
realized by the end of 2007, that the numbers will increase to
32 million more people served with safe drinking water and around
31 million more people will benefit from proper sanitation facilities
in rural areas since the launching of the RWSSI.
2.3 Issues and challenges
2.3.1 The target for the Bank contribution for the period
2004-07 was to provide a financing of USD 1.3 billion to support
RWSSI in 18 countries. This target will be reached in terms of
number of countries, but not in term of financing. The reason
is that the ADF Country allocations are limited, some countries
are under sanction or in conflict, and the competition among different
sectors for the limited resources has also impacted on resources
allocated to the water sector. Nevertheless, the total Bank intervention
during that period in the Water Supply and Sanitation sector will
reach USD 1.26 billion.
2.3.2 The challenges for the future include:
(i) Ensuring that the increasing trend of the Bank financing
in the Water sector, particular in RWSSI is increased;
(ii) Advocating for increased funding for RWSS by donors
and African Governments;
(iii) Providing adequate staffing at the Bank's headquarters
and in Field Offices for effective development and implementation
of RWSS programmes;
(iv) Improving the Bank's Business processes to enhance
programme development and implementation;
(v) Building local Government and Community capacity;
(vi) Building local contractor, artisan and consultant
capacity to achieve the required scaling up;
(vii) Establishing reliable supply chains;
(ix) Improving monitoring and evaluation systems.
2.3.3 Providing adequate staffing at the Bank's headquarters
and in Field Offices is another challenge faced by the Bank to
achieve the RWSSI objectives. To address the staffing needs, the
Bank is committed to gradually increase its professional staff
capacity through the recruitment of more water and sanitation
engineers, socio-economists, gender experts, financial analysts,
and sector economists. A number of donor partners, including FINIDA,
DANIDA, DFID, the Governments of France and the Netherlands are
assisting with the provision of Technical assistants in the above
areas.
DFID SUPPORT FOR
RWSSI
2.3.4 The proposed DFID financed 6 million pounds sterling
(£6 million) Technical Assistance project is to help the
Bank achieve the RWSSI targets by enhancing its human resources
capacity both at headquarters and in the field through the provision
of Technical Assistants over a three to four year period. The
project will commence with a Needs Assessment study which will
determine the technical assistance needs in the Bank's headquarters
as well as in the countries with RWSS programmes. The Bank will
then procure the relevant experts as well as the equipment and
other requirements to enable the TA to operate effectively. DFID
will carry out annual reviews of the TA project as well as participate
in the sector reviews of RWSSI programmes in selected countries
to follow progress of RWSSI programmes as well as evaluate the
success of the TA project in line with agreed indicators.
2.3.5 DFID is also financing a Financial Management expert
to be based at Bank headquarters to assist the African Water Facility
with financial management issues.
January 2007
|
