WSS sector finance in sub-Saharan Africa A regional comparison framework - PowerPoint PPT Presentation

Loading...

PPT – WSS sector finance in sub-Saharan Africa A regional comparison framework PowerPoint presentation | free to download - id: 6b0a04-MzM4Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

WSS sector finance in sub-Saharan Africa A regional comparison framework

Description:

WSS sector finance in sub-Saharan Africa A regional comparison framework Thomas Fugelsnes, Economist, WSP - AF Kampala, Uganda, February 2004 – PowerPoint PPT presentation

Number of Views:14
Avg rating:3.0/5.0
Slides: 26
Provided by: Addi55
Learn more at: http://www.odi.org
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: WSS sector finance in sub-Saharan Africa A regional comparison framework


1
WSS sector finance in sub-Saharan Africa A
regional comparison framework
  • Thomas Fugelsnes, Economist, WSP - AF
  • Kampala, Uganda, February 2004

2
What is resource flows assessments?
  • Sector Institutional Mapping
  • The study uses the concept of WSS service
    providers national level government departments,
    national level utility, local government WSS
    departments, local level utilities, PSSPs and
    CBOs
  • Sector Financial Mapping
  • Channels of funds, sources of funds and
    use/utilization of finance
  • Analysis of Public funds
  • Decision-making for allocations of public
    resources, review of rules, procedures and
    regulatory framework and analysis of monitoring
    and accountability systems

3
Why Resource flows assessments?
  • Finance is a constraint in countrywide scaling up
    of sector reforms and to achieve the MDGs
  • Inadequate understanding of WSS sector finance -
    a reason for lack of WSS incorporation into PRSPs
    in SSA
  • Financing in WSS tends to be diverse with equal
    importance of public and private/community
    resources

4
The resource flows assessment process
  • Countrywide assessments of resource flows
  • Develop regional comparisons to feed back into
    country assessments
  • Phase 1 Country studies in Kenya, Ethiopia and
    South Africa
  • Phase 2 Zambia, Uganda (sanitation), Yemen, West
    Africa (one or two countries if possible) and
    regional comparisons

5
Why regional resource flows comparisons?
  • At country level
  • Countries to see how they continuously allocate
    resources as well as that of other countries,
    providing a basis for improved future resource
    allocations
  • Civil society advocates and parliamentarians to
    make governments accountable for resource
    allocations
  • Donors to see in tandem prioritization and actual
    resource allocations, adjust their development
    priorities and assistance
  • All stakeholders to gain access to good practices
    and innovative ideas, and adapt these to local
    challenges to improve performance

6
Why regional resource flows comparisons?
  • At regional level
  • Feed into NEPAD and AMCOW
  • Regional donor groups, African Water Facility
  • Multinational donors

7
Three statements heard in the WSS sector today
  • We need more funding, ready for donor projects
  • Theres a ceiling to how much that can be
    financed on public sector budgets
  • Decentralization and sector coordination
    Countries decentralizing but no capacity at local
    level

8
Regional WSS finance comparisons can help
addressing those issues
  • Adequate funding
  • How much public funding?
  • User financing
  • Internal generation and efficiency
  • Donor support
  • Integrating NGOs in sector coordination policies

9
Leveraging point 1How much should be allocated
to the sector through public budgets?
  • Theres no right or wrong answer to the question
    - But WSS resource flow studies show limited
    public sector resources for WSS
  • The WSS sector receive low allocations in both
    Ethiopia and Kenya
  • Illustrations of indicators that can hint at
    answers can come out of a regional comparison

10
Adequate funding 1WSS expenditure as share of
public expenditure
11
Adequate funding 2WSS expenditure as share of
GDP
12
Adequate funding 2Total WSS expenditure as
share of GDP compared to health
13
Adequate funding 3 Comparative annual WSS
expenditure per capita (USD)
14
Adequate funding of WSS in public budgets
  • Theres a need to assess resource requirements
    and compare with resource availability in the
    sector
  • The Ethiopia Public Expenditure Review of water
    an example of projections of expenditure
    requirements in investment plans
  • Ambitious projection scenario
  • Moderate projection scenario
  • Low scenario
  • Regional resource allocation and performance
    comparisons may help in advocacy for adequate
    funding

15
Leveraging point 2 User Financing
  • Internal generation
  • The WSS is hitting the ceiling for how much it
    can be allocated under the PEAP in Uganda, still
    resource required
  • Two ways this can be addressed
  • More user charges
  • More community contributions to capital costs
    (esp.ly for RWSS) And supporting / coordinating
    greater NGO and community resources
  • The assumption is that user financing is not part
    of the ceiling if it is off-budget
  • User charges important (39 Kenya)

16
Leveraging Additional Resources
  • Comparing sector expenditure as a of GDP -
    health versus WSS
  • Are we crowding out non-public resources?
  • Source Sub-Saharan Africa World Development
    Report, 2003. Other countries WSP-AF ongoing
    studies.

Ethiopia
Kenya
South Africa
Sub Saharan Africa
17
Leveraging point 2 User Financing Contd
  • URWS
  • Efficiency in collecting user charges
  • Generating operational surplus
  • Both are linked to institutional reforms
  • RWSS
  • Community contributions
  • Uganda and Benin 5
  • Ethiopia 10
  • Kenya often 20-60
  • China as high as 75
  • And often non contributed at all
  • Linked to cost-sharing policy, design of
    financing mechanisms and institutional reforms

18
Leveraging point 3How to balance sector
coordination with NGO involvement?
  • Kenya/Ethiopia high share of off-budget or
    donor resources
  • 20 of total sector expenditure and
  • 70 of donor resources
  • South Africa story
  • Decentralization story

19
Share of served population by type of WSP
Urban
Rural
20
Expenditure estimates for different levels and
service providers
21
Way forward Benchmarking WSS sector finance
  • For country processes and regional process to
    feed into each other
  • Such comparisons may help in advocacy for
    adequate funding of WSS
  • Ten indicators

22
Way forward Benchmarking WSS sector finance
  • Adequate public funding
  • Percentage of total national expenditure
    allocated to WSS (dev. and recurrent)
  • WSS budget allocations as share of GDP (national)
  • Percentage of budget allocations to the WSS
    sector relative to other other social sectors
    (dev. and recurrent)
  • Budgetary ceiling for WSS within MTEF as compared
    to other relevant sectors
  • Ratio of total donor/NGO contributions to
    national budget for WSS expenditures

23
Way forward Benchmarking WSS sector finance
  • User financing
  • User charges as a share of total sector finance
  • Ratio of user charges to recurrent expenditures
    by service providers
  • Prevalence and share of user charges among
    different service providers

24
Way forward Benchmarking WSS sector finance
  • Donor funding/NGO
  • Percentage of total expenditures by CBO/PSIP
    (dev. and recurrent)
  • Percentage of donor funds integrated into
    national budget

25
Way forward Benchmarking WSS sector finance
  • Efficiency not really addressed here
  • Utilization actual as share of planned in
    national budgets
  • Value-for-money
  • Operating performance of service providers
About PowerShow.com