Transcript AFRICA DAY 5 World Water Forum Financing a Sustainable Expansion of

AFRICA DAY
5th World Water Forum
Financing a Sustainable Expansion of
Africa’s Water Infrastructure
Presentation by A. R. Rakotobe, Director
Water and Sanitation & African Water Facility Department, AfDB
Istanbul, 18th March 2009
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
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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)
•WHO’s publication on ‘Regional and Global Costs of Attaining
the Water Supply and Sanitation Target (2008)
•WSP’s ongoing country-level diagnostics in water and
sanitation
•ADB’s Clean Energy Investment Framework
•December 2008 Sirte meeting on Water for Agriculture and
Energy in Africa, and
•OECD’s contribution on ‘Financing and pricing water’ at the
December 2008 Global Forum on Sustainable Development
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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
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The AWV established a financial requirement for water
infrastructure of US$20 bn p.a. in 2000. A recent update puts
the requirement at $50 bn
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AWV US$ bn [2000]
AWV US$ bn [2008]
20
20
15
12
12
10
5
5
4
5
5
2.1
0.4
0
WS&S
Wastewater
Agric water
HEP
Multi-purpose
Storage
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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 :
1.$5 billion p.a. for capital
costs of irrigation and
recurrent O&M costs
2.$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
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infrastructure
Total gap is in the region of US$30.0 bn p.a. (60%) differentiated between capital expenditure and recurrent
costs
20
20
Total Invest
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Current invest
16
14
12
12
10
8
8
6
6
5
5
5
4
2
2
1
1
2
2
0.6
0.4
0
DWSS
Wastewater
Desalination
Storage-Non
HEP
Agric Water
HEP
Institutional
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INDICATIVE FINANCING GAP BREAKDOWN BETWEEN
CAPEX AND O&M
Capital Exp
O&M
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
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Closing the financing gap
requires
actions
from
Governments and National
Stakeholders,
Regional
Bodies and Development
Partners
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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
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Closing gap requires Government and National
Stakeholders actions
Finance strategies to meet capex and O&M
requirements (3Ts – tariffs, taxes, transfers)
1. Utility reforms that reduce operational inefficiencies and
cost recovery to meet at least O&M
2. Delivery on the eThekweni commitment on financing
sanitation (0.5% of GDP)
3. Meeting agriculture investments under the Maputo
public expenditure pledge (10% of GDP)
4. Strengthened partnership with Development Partners
and greater engagement with Africa’s emerging
partners
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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
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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
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AfDB and the AWF will support specific actions on
delivery of the commitments made....including
1. Commissioning a Strategic and Operational study on the
role of water in Africa’s economic development, returns to
Government and society and Action Plan to develop the
water infrastructure assets (2009/10);
2. Supporting a meeting of AMCOW Ministers and Ministers
of Finance by end of 2009
3. Organisation of the 2nd RWSSI International Conference
to review achievement and mobilise resources for 2nd
and 3rd phase implementation;
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AfDB Actions ....(2)
4. Support countries to prepare Sector Investment Plans
including finance strategies by developing and sharing
framework and tools
5. Roll out implementation of Pan African M&E Framework
that will track investment flows, among others
6. Implementation of the Bank’s plan to increase water
storage by 1% p.a. up to 2013
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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.
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Thank you for your attention!
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