WSS PRSPWSS PRSP

Strengthening Finance of WSS Strengthening Finance of WSS Programmes under PRSPsProgrammes under PRSPs

A collaborative research project WaterAid and ODI

WSSPRSP workshop Kampala Feb

Sources of Sources of fundingfunding

Diverse and poorly co-ordinated and Diverse and poorly co-ordinated and flows are difficult to quantify preciselyflows are difficult to quantify precisely

Major donor-driven projects bypass Major donor-driven projects bypass the budget systemthe budget system

Lack of donor conformity in approach Lack of donor conformity in approach to funding sectorto funding sector

60%18%

8%9% 4%1%

Total Tax and no-tax revenue

BOP support

Project Support

HIPC

Japanses DebtRelief

General Elections

Government Revenue 2003 / 2004

NB – HIPC only equals 9% of total budget, of which 2.44% is WATSAN

Budgetary Allocation to PPES

2001-2002 (MK '000)

Share %

2002-2003 (MK '000)

Share %

2003-2004 (MK '000)

Share %

Agriculture 165,400 3% 543,749 5% 804,164 7%

Water and Sanitation 280,700 5% 253,242 2% 172,961 1%

Rural Feeder roads 801,000 14% 400,000 4% 125,000 1%

Small-scale Enterprises 91,400 2% 184,736 2% 282,407 2%

Education 1,862,300 31% 5,902,981 52% 6,355,845 52%

Health 2,255,600 38% 2,861,597 25% 3,095,236 25%

Safety nets 196,000 3% 323,000 3% 510,595 4%

Good governance 47,000 1% 356,484 3% 411,521 3%

Note: Total budgetary allocation for pro-poor expenditure is ‘ring-fenced’ i.e. protected at 7% of GDP for next 3yrs. WSS as a share of GDP is projected to decline.

National processes for resource allocation INational processes for resource allocation I Overall fiscal discipline has improved in recent years, Overall fiscal discipline has improved in recent years,

HOWEVER: HOWEVER:

WSS allocation in national budget less than amount WSS allocation in national budget less than amount projected for WSS in the Malawi PRSPprojected for WSS in the Malawi PRSP

Budgeting and allocation process for WSS sector does not Budgeting and allocation process for WSS sector does not follow the defined national budgeting proceduresfollow the defined national budgeting procedures

But is that the whole story?

HOW MUCH MONEY IS FLOWING INTO THE SECTOR AS A WHOLE, NOT JUST FROM NATIONAL BUDGET?

THIS IS DIFFICULT TO DERIVE, BUT THERE ARE OTHER WAYS.

South Mzimba District (NORTHERN REGION)PROFILE

0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 11 21 31 41 51 61 71 81 91 101 111113 Enumeration Areas (149,600 hab.)

ICW

P d

ensity

(nb o

f w

ate

r poin

t per

1000 h

ab.) current WP density

WP density before 1998

current density of functional WP

funct. D >820 %

population

4< funct. D <841 %

population2< D <4

30 %

D <29 %

2,472 new working water points will be required BY 2015 in order to achieve the MDG in the surveyed areas. (33%)

These new water points will reduce the predicted 1,056,273 unserved population in 2015 to 449,350.

This figure represent 21% of the total predicted total population living in the surveyed area in 2015.

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

1998 1999 2000 2001 2002

Water Points hardware investments in USD from 1998 to 2002

Level of investment required for

Scenarios B and E(285 water points

$1,140,000 per year)

Investment in the water sector 1998 – 2002

Average of 669 water points per year in 30% of the country

How much is planned? How much is planned? JICA JICA = 400 boreholes over 3 years = 400 boreholes over 3 years EU EU = 1250 water points for 5years= 1250 water points for 5years NORADNORAD = 510 water points for 5 years= 510 water points for 5 years CIDA CIDA = 120 water points per year = 120 water points per year CCAPCCAP = Average about 250 per year= Average about 250 per year WaterAidWaterAid = Average about 60 per year = Average about 60 per year KWF KWF = Average about 40 per year= Average about 40 per year Other sources ?? No overall plan or regulationOther sources ?? No overall plan or regulation

Rough calculation = 1,020 per year outside PRSPRough calculation = 1,020 per year outside PRSP

7,416 water points needed by 2015, achieve in 8.5 7,416 water points needed by 2015, achieve in 8.5 years years

ENUMERATION AREAS WATER POINT DENSITY PROFILESCENARIO D & E (TARGETING THE MOST UNSERVED AREAS)

0

1

2

3

4

5

6

7

8

11121314151617181911011111211311411511611711811912012112212312412512612712812913013113213313413513613713813914014114214314414514614714814915015115215315415515615715815916016116216316416516616716816917017117217317417517617717817918018118218318418518618718818919019119219319419519619719819911001101110211031104110511061107110811091110111111121113111411151116111711181119112011211122112311241125112611271128112911301131113211331134113511361137113811391140114111421143114411,444 Enumeration Areas (1,500,000 hab.)

ICW

P d

ensity

(nb o

f w

ate

r poin

t per

1,0

00)

evolution of functional Water Point density by 2015

2003 functional Water Point density

2003

2015 - D

2015 - E

ENUMERATION AREAS WATER POINT DENSITY PROFILESCENARIOS A, B AND C (EVEN DISTRIBUTION)

0

1

2

3

4

5

6

7

8

11121314151617181911011111211311411511611711811912012112212312412512612712812913013113213313413513613713813914014114214314414514614714814915015115215315415515615715815916016116216316416516616716816917017117217317417517617717817918018118218318418518618718818919019119219319419519619719819911001101110211031104110511061107110811091110111111121113111411151116111711181119112011211122112311241125112611271128112911301131113211331134113511361137113811391140114111421143114411,444 Enumeration Areas (1,500,000 hab.)

ICW

P d

ensi

ty

(nb

of w

ater

poi

nt p

er 1

,000

)

evolution of functional Water Point density by 2015

2003 functional Water Point density

2003

C B A2015

National Processes National Processes for resource allocation IIfor resource allocation II

No systematic sector-wide No systematic sector-wide criteria to guide WSS criteria to guide WSS investmentsinvestments

Sector fragmented so Sector fragmented so difficult to develop difficult to develop coherent sector plan coherent sector plan

Difficult to monitor Difficult to monitor spending and track resultsspending and track results

Fiscal decentralisation Fiscal decentralisation planned for July 2003 but planned for July 2003 but remains highly centralisedremains highly centralised

Community Community ContributionsContributions

Different approaches in the Different approaches in the same village. same village.

Payment and collection Payment and collection irregular and disorganisedirregular and disorganised

Insufficient for major Insufficient for major breakdowns & replacementsbreakdowns & replacements

Sufficient to cover routine Sufficient to cover routine maintenance and minor maintenance and minor repairs of boreholesrepairs of boreholes

percentage of functional water points depending on installation date (based on 9,000 handpumps studied)

60%

72%75%

79%

85%90%

93%

50%

60%

70%

80%

90%

100%

1996 andbefore

1997 1998 1999 2000 2001 2002