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AFRICA DAY

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The Africa Water Vision ... 'An Africa where there is an equitable and sustainable use and ... Sirte meeting on Water for Agriculture and Energy in Africa, and ... – PowerPoint PPT presentation

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Title: AFRICA DAY


1
  • AFRICA DAY
  • 5th World Water Forum
  • Financing a Sustainable Expansion of
  • Africas Water Infrastructure
  • Presentation by A. R. Rakotobe, Director
  • Water and Sanitation African Water Facility
    Department, AfDB
  • Istanbul, 18th March 2009

2
The Africa Water Vision (AWV) for 2025 Endorsed
by African Ministers of Water Resources and other
stakeholders at the 2nd World Water Forum in May
2000
  • An Africa where there is an equitable and
    sustainable use and management of water resources
    for poverty alleviation, socio-economic
    development, regional cooperation, and the
    environment.

compare
3
An update of the AWV financing requirements has
been carried out. This is preliminary, indicative
but realistic
  • The Update was made possible by recent processes
    focused on water, including
  • African Infrastructure Country Diagnostic (AIC)
  • WHOs publication on Regional and Global Costs
    of Attaining the Water Supply and Sanitation
    Target (2008)
  • WSPs ongoing country-level diagnostics in water
    and sanitation
  • ADBs Clean Energy Investment Framework
  • December 2008 Sirte meeting on Water for
    Agriculture and Energy in Africa, and
  • OECDs contribution on Financing and pricing
    water at the December 2008 Global Forum on
    Sustainable Development

4
Estimates of overall cost are now better linked
to specific economic and social development
outcomes
  • Update allows estimation of the cost of water
    resources infrastructure to achieve economic
    growth, food and energy securities and hazard
    management
  • Although some uncertainties remain, (especially
    in energy and water storage, with multipurpose
    opportunities), unit costs of new infrastructure
    are gaining greater realism
  • AWV 2025 Targets
  • provision of safe and adequate water supply and
    sanitation for 95 of the population
  • doubling the irrigated area to 24 million ha and
  • developing 25 of the hydropower needs

5
The AWV established a financial requirement for
water infrastructure of US20 bn p.a. in 2000. A
recent update puts the requirement at 50 bn

6
Increase due to infrastructure to achieve
economic growth, food and energy securities, and
hazard management

Drinking WSS 12 billion p.a. linked to 3 main
pathways to attaining MDG targets. 1. New,
extended coverages necessary to attain the MDG
targets. 2. Rehab recurrent costs of existing
coverages 3. Recurrent costs associated with
maintaining new coverages
  • Water Agriculture and non HEP storage
  • Combined investment costs for next 50 years is
  • 5 billion p.a. for capital costs of irrigation
    and recurrent OM costs
  • 10 billion p.a. (incl. non HEP multi-purpose
    storage) to bring per capita storage to
    acceptable levels

HEP Multipurpose storage Tentative requirement
for is in the region of 20 billion
p.a. Hydropower will become an increasing source
of energy given trend towards cleaner energy and
measures taken to address environmental and
social concerns in large dam infrastructure
7
Total gap is in the region of US30.0 bn p.a.
(60) - differentiated between capital
expenditure and recurrent costs

8
INDICATIVE FINANCING GAP BREAKDOWN BETWEEN CAPEX
AND OM
Capital Exp OM TOTAL
WSS 2.9 3.1 6.0
Wastewater 2.4 1.6 4.0
Agricultural Water 1.8 1.2 3.0
HEP M-P storage 7.2 4.8 12.0
Non HEP M-P storage 2.4 0.6 3.0
Desalination 0.4 0.2 0.6
Institutional 0.1 1.3 1.4
Total 17.2 12.8 30.0
9
  • Closing the financing gap requires actions from
    Governments and National Stakeholders, Regional
    Bodies and Development Partners

10
AMCOW to be strengthened in its leadership role
to deliver on the Water Agenda
  • Establishment of a mechanism to peer-review water
    security actions taken by members
  • Organisation of an AMCOW Ministers/Ministers of
    Finance meeting around finance strategies, and
    returns to Government and society
  • Establishment of a short-term African Water
    Finance Task Force to bring together the
    different emerging strands of financing and to
    report to 2nd African Water Week

11
Closing gap requires Government and National
Stakeholders actions
  • Finance strategies to meet capex and OM
    requirements (3Ts tariffs, taxes, transfers)
  • Utility reforms that reduce operational
    inefficiencies and cost recovery to meet at least
    OM
  • Delivery on the eThekweni commitment on financing
    sanitation (0.5 of GDP)
  • Meeting agriculture investments under the Maputo
    public expenditure pledge (10 of GDP)
  • Strengthened partnership with Development
    Partners and greater engagement with Africas
    emerging partners

12
Governments, RECs and RLBO should embark on the
development of trans-boundary water
infrastructure
  • Implementation of regional trade in energy,
    creating markets for large water infrastructure
    beyond the capabilities of individual countries
  • Promoting water transfers between water-endowed
    and less-endowed countries to support economic
    growth

13
Development Partners contributions should
maximise use of existing national and regional
facilities
  • Strengthen and scale up support for RWSSI and AWF
    rather than create new initiatives
  • Meet pledges and commitments, with greater
    clarity on disbursement instruments and
    replenishment of existing funds and facilities
  • An urgent implementation response to disbursement
    of 2008 Food Price Crisis pledges

14
AfDB and the AWF will support specific actions on
delivery of the commitments made....including
  • Commissioning a Strategic and Operational study
    on the role of water in Africas economic
    development, returns to Government and society
    and Action Plan to develop the water
    infrastructure assets (2009/10)
  • Supporting a meeting of AMCOW Ministers and
    Ministers of Finance by end of 2009
  • Organisation of the 2nd RWSSI International
    Conference to review achievement and mobilise
    resources for 2nd and 3rd phase implementation

15
AfDB Actions ....(2)
  • Support countries to prepare Sector Investment
    Plans including finance strategies by developing
    and sharing framework and tools
  • Roll out implementation of Pan African ME
    Framework that will track investment flows, among
    others
  • Implementation of the Banks plan to increase
    water storage by 1 p.a. up to 2013

16
The concluding messages reinforce the central
role of Governments in pulling financing actions
together
  • In-country implementation is central to deliver
    on the commitments
  • Govt. leading actions to bring others into the
    investment/cost saving/cost recovery mix...not
    about new finance only also opportunities on
    cost saving and efficiencies
  • Progressing investment plans needs to be together
    with finance (and marketing) strategies
  • Partners need to align to the Regional
    development agenda and make good of their
    commitments.

17
Thank you for your attention!
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