Transcript EAP Task Force Finance strategies for environmental infrastructure Xavier Leflaive Paris, 23 February, 2007

EAP Task Force
Finance strategies for
environmental infrastructure
Xavier Leflaive
Paris, 23 February, 2007
Outline of the presentation
EAP Task Force

Objective of the presentation

Context

Experience gained

Ways forward
2
Objective of the presentation
EAP Task Force

Share information on the latest
developments of the methodology

Discuss ways forward

Identify priority areas of work, possibly for
after Belgrade
3
Context
What is a finance strategy

A process

Objectives
– To support the design of a national/regional
strategy on environmental infrastructure
(water, sanitation, waste)
– To check the feasiblity of this strategy
– To substantiate dialogue on targets regarding
the level/quality of service (e.g. coverage,
standard, technology)
– To assess the financial options to finance
these targets
EAP Task Force
4
Context
Why Finance Strategies?

Because of
– Lack of realism
– Need to take account of affordability
• For households
• For public budgets

Additional reasons
– To provide a missing link between sector
policies and programs and feasibility studies
– To pave the way for external financing by
providing clear and transparent data on
financing requirements
EAP Task Force
5
Experience gained in EECCA
Country
Region
Georgia
National
Moldova
National
Urban water supply
Urban sanitation
Municipal Waste
Kaliningrad
Novgorod
Pskov
Rostov on Don
Russian Federation
Yaroslavl
Khanty-Mansijsk (KhMAO)
Leningrad Oblast + St.Petersburg
Caucasus Mineral Water region
National
Kazakhstan
Eastern Kazakhstan Oblast
Ukraine
National
Armenia
National
Armenia
Lori and Shirak marzes
EAP Task Force
6
Experience gained
Selected outcomes from FS

Water
– Substantiates a policy dialogue on the level of
sevice for urban water supply
– Contributes to the awareness that sanitation should
be a priority issue and is affordable
– Provides an estimate for the costs of achieving the
MDGs
– Rationale for a revision of tariff policy

Waste
– Provides substantial input to a national/regional
Master plan
– Analyse capacity of the sector to attract private
operators
– Raises the issue of intermunicipal cooperation
EAP Task Force
7
Ways forward
Enhancing the relevance of FS

Reliability of data
– Data collection
– The case of rural areas

Relevance of alternative scenarios
– Identify the appropriate policy options (level of service,
geographical aggregation, etc.)

A focus on implementation
– Plugging the finance strategies into
• The revision of PRSP
• Budgetary decision making (MTEF)
• Tariff setting procedures
– Monitoring the implementation (performance indicators)

Revising finance strategies, to account for
– New demand forecasts
– Updated costs
– Revised potential revenues
EAP Task Force
8