Memorandum submitted by AquaFed
SUBMISSION OF
EVIDENCE
1. AquaFed, the International Federation
of Private Water Operators, is pleased to take this opportunity
to respond to the call to give evidence to the International Development
Committee's inquiry into DFID and the World Bank. In this response,
AquaFed represents companies from several nations as well as Britain
that are operating in developing countries including those that
receive British development assistance. This response may not
represent the views of British water operators that are not members
of the Federation.
2. AquaFed was pleased to have had the opportunity
to have made a contribution to the previous inquiry on water and
sanitation (WAS WE 27 and Uncorrected Evidence 57). The executive
summary of the former is annexed to this memorandum. A number
of the points that we made in those submissions, appear relevant
in the context of this inquiry. In particular our comments on
measuring performance and supporting good governance as a precondition
to achieving sustainable results. We encourage the British Government,
DFID and the World Bank to pursue these objectives through coordinated
policies and actions.
1. Stimulating projects that maximise results
for the poor
1. To meet its objectives, it is important
for the British Government and for British taxpayers that DFID
manages the expenditure of the money entrusted to it in the most
efficient and effective manner to achieve the best results.
2. This requires DFID to measure the results
in terms of lives improved where the money is spent. It needs
to compare this ultimate measure with the money provided by taxpayers
to obtain an indicator of the efficiency of the processes that
it uses to undertake its work.
3. Pooling some of the UK's aid money with
other countries through Multilateral Financial Institutions can
be an effective way of working. But DFID needs to know what proportion
of the money that is passed to the World Bank reaches those in
need in the field. DFID needs to measure its own contribution
to the MDGs even if its funds pass through third-party agencies.
4. This also means that DFID needs to set
its own conditions when accepting to contribute financially to
a project or a policy in the water sector. These conditions need
to be understood and agreed between all the parties and designed
to maximise the impact of the aid on the poor people.
2. Answering the needs of water sector: Securing
financial leverage and targeting local authorities' needs
5. Three high-level world panels have issued
to governments the same recommendations in the past four years.
The Financing Water for All reports chaired by M Camdessus
in 2003 and by A Gurria in 2006 and the Hashimoto Action Plan
released in 2006 by the UN Secretary General's Advisory Board
on Water and Sanitation all recommended that donors like DFID
use significant parts of their development aid:
— to mobilise increased volumes
of non-aid financing flows by using ODA as a catalyst that facilitates
the application of funds from other sources to water projects;
and
— to target the needs of local
authorities/operators through facilitating their access to finance.
6. Working together DFID and the Multilateral
Financial Institutions can do more to achieve these goals in the
water and sanitation field when they engage in supporting specific
projects or in enhancing local financial markets conditions for
water utilities.
3. Continuing joint applied research for
Development
7. The World Bank is a leading organisation
in promoting and conducting applied research into development
processes and in providing high level policy advice. Much of its
work is supported by the real field experience gained on projects
that it sponsors. In the water and sanitation sector, initiatives
like the Water and Sanitation Program (WSP) and the Public Private
Infrastructure Advisory Facility (PPIAF) give very practical insights
into real problems and propose sustainable solutions to them.
These are good examples of pooled efforts. This effort must be
continued.
4. Even-handed and continuous support to
development agents to maximise efficiency in the field
8. When DFID or the World Bank partner with
development agents, such as NGOs, private sector investors or
operators in projects, especially in experimental or pilot projects,
they should see these projects through to their conclusion, maintaining
an even-handed and fair approach between these agents, the host
governments and the taxpayers. This is necessary to maximise efficiency
in the field through the continued commitment of all potential
actors.
9. In this context it is particularly important
that DFID and the World Bank maintain consistent support to operators
who agree to undertake projects in weak governance zones to further
international development objectives such as the MDGs. To meet
these policies in weak governance zones, these companies are required
to assume risks and to make long term commitments that need continuous
institutional support. DFID, the World Bank and other International
Institutions should recognise that ensuring long term support
to these projects is essential to meet the objectives and contributes
to strengthening the governance systems in the countries where
they are undertaken.
October 12, 2007
| 
