Transcript OECD Internet Projects

National policy Dialogue on
Financing Strategy for Rural
Water Supply and Sanitation
Alexander Martusevich,
Environment Directorate
Env&Globalisation Division
EAP Task Force
Structure of presentation
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EAP Task Force
Status of rural WSS and the challenge of
achieving water-related MDGs in
EECCA
Collective efforts to help achieve waterrelated MDGs in Armenia
Present project and previous EAP Task
Force work on financing WSS
infrastructure in Armenia
International institutions involved
First mission and the kick-off meeting
Rural WSS: poor status in all EECCA
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Infrastructure and service level continue to deteriorate,
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coverage reduces
In many cases the centralised water supply fully collapsed
after liquidation of the soviet kolhoz-sovkhoz system
Main reasons:
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EAP Task Force
Despite low household income, often in kind, and
widespread poverty in rural areas:
lack of strategic approach and attention from central
Governments
little public funds allocated to the sector (compared to urban
WSS)
poor, or lack of the appropriate institutional set-up
(few exceptions, region or rural settlement specific)
In most EECCA problems faced by Rural WSS are not
even fully identified and understood!
Collective efforts to help achieve waterrelated MDGs
Achieving MDGs in rural areas is a big
challenge! International support is needed
Key related international initiatives:
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EU WI (leaded by EC, DG ENV)
Millennium Challenge Account (USA)
Donors and IFIs
The present project in Armenia is undertaken
in the framework of the EU WI EECCA
component in co-operation with EAP Task
Force and UN ECE
EAP Task Force
Collective efforts to help achieve waterrelated MDGs in Armenia
The present project inter alia aims to
address specific requests from SCWS:
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help develop a Financing strategy (FS) for rural
WSS with water-related MDGs as targets
help to set “minimal amount of water supply”
standard
The project will build upon the
previous EAP Task Force work on
financing WSS infrastructure in
Armenia:
EAP Task Force
Previous EAP Task Force work
Financing strategy (FS) for urban WSS
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EAP Task Force
(focus on municipal wastewater collection
and treatment)
Targets: increase coverage by the sanitation
service, provide effective mechanical
treatment of collected wastewater
Results: feasible scenario to rehabilitate
municipal wastewater infrastructure, priority
investment identified
Previous EAP Task Force work - 2
Implementing FS for WSS in Armenia,
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EAP Task Force
through:
Integrating it into the budgetary process and
MTEF (Task 1)
Ensuring more effective use of available
resources (Task 2)
Integrating ATP and WTP into tariff approval
procedure (Task 3)
Adopting Financial planning tool for water
utilities (FPTWU) (Task 4)
Extending the FS methodology to rural WSS
(Task 5)
Present project
Present project has a broader task:
To launch a National Policy Dialogue (NPD)
on how to finance achieving water-related
MDGs, targets on WSS, and on IWRM
Inter alia it envisages:
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EAP Task Force
Developing a FS for rural WSS
Costing of priority measures under IWRM
Deriving aggregated financial figures for
water-related MDGs: total expenditure in
2005 - 2014 and supply of finance, financing
gap and a package of policy measures to
bridge the gap
International institutions involved
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EAP Task Force
EU WI EECCA component lead by EC (DG
ENV), Technical Secretariat (DHI & COWI)
EAP Task Force (WSS and financing)
UN ECE (IWRM)
As soon as in 2007 the NPD in Armenia will
focus on WSS and financial issues, other
international players in Armenia will hopefully
also be involved:
Donors (US AID and Millennium Challenge
Account, UK DFID, JICA, JIBIC)
IFIs (WB, KfW, EBRD, ADB)
EU WI Finance Working Group, etc.
First mission and the kick-off meeting
Key objectives:
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EAP Task Force
Inform local stakeholders about the project
(objectives, scope, milestones)
Agree upon main topics of the policy dialogue
in 2007 (and potential topics afterwards)
Establish Steering Group
Agree upon roles and responsibilities of
different SG members
Ask the SG for advise on some key variables
of policy scenarios