Overview of African Development Bank Water Sector Instruments

1
Overview of African Development Bank Water
Sector Instruments

• Presentation at the OECD-AfDB Experts Meeting
• on
• Access to Drinking Water and Sanitation in Africa
  
• by
• Peter Akari
• African Water Facility

2
Presentation Outline

• Situation Assessment
• Challenges
• Bank Responses
• RWSSI
• African Water Facility

3
Situation Water Resources Potential

• 5400 km3 (10 of world) of renewable resources.
• Over 40 million ha of irrigation potential
• 1.4 million GWh of hydro power potential
• Major river system suitable for inland transport
• Diverse scenery and ecology for tourist use
• Over 60 Shared international water basins

4
Water Utilisation

• About 4 available water is used in the
  continent
• About 2 available resources utilized in SSA.
• Total irrigated areas is less than 20 of
  potential.
• About 6 of cultivated area is irrigated.
• Less than 6 of hydropower potential developed
• About 65 of rural and 25 of urban population
  without access to clean water supply
• About 73 of rural and 43 urban people without
  proper sanitation
• Development for transport, tourist use and other
  benefits minimal
• Less than 50 m3/c storage capacity compared to
  over 3000 m3/c in Europe, 5000 in USA

5
Situation Impending Water Scarcity

• 1995 Pop 640 million
• 6 countries water scarcity (lt1000 m3//capita/yr )
  situation
• 6 countries in water stress (1000 1700
  m3//capita/yr)
• Population in affected countries was about 220
  million
• By 2025 1400 million
• 15 countries in water scarcity with about 600
  million people
• 10 countries in water stress with about 470
  million people

6
Key Challenges

• Some of the main reasons for these include
• Hydrology
• Spatial and temporal variability of water
  resources
• Multiplicity of trans-boundary water basins
• Financial
• Inadequate financial investments
• Insufficient cost recovery for OM
• Poor policy and legal environment

7
Bank Response

• From inception in 1964, the Bank has invested
  over US 5.80 billion on projects in WSS,
  hydropower, irrigation.
• Represents about 11 of total Bank lending of
  over US 50 billion.
• WSS accounted for about US 4.0 billion or 69 of
  water sector investments.
• 80 of investments in WSS have been for urban
  projects and only 20 for rural water supply.

8
Framework For Bank Water Sector Activities
African Water Vision Overarching strategic
framework Water Governance Water wisdom
meeting basic needs finance
Bank Vision Strategic SectorsAgric and Rural
Develop Health Education Regional
Integration Environment Gender
NEPAD promotion of regional integration
Bank Group Strategic Plan 2003 -2007Strategic
focus on WSS, agricultural water use and
hydro-energy
AMCOW Political and Strategic Leadership
NEPAD Infrastructure Programme
IWRM PolicyOverarching Principles and Policy
Framework Economic Social and Environmental Use
Water Partnership Programme Bank capacity
building operation support
AWF Financing Facilitation and small scale
Investment
Other multilateral, bilateral, govern
NEPAD Water Sanitation ProgrammeMulti national
programmes focusing on water security
RWSSI Coverage of 80 of rural pop by 2015
Bank Water Sector Operation
Sustainable Water Resources Development and
Management in Africa
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Goal and Objectives of RWSSI

• Initiative to mobilize all stakeholders under a
  common framework to attain MDG 7, target 10 for
  rural Africa
• Goal To accelerate sustainable access to
  drinking water supply and sanitation in rural
  Africa
• Objective To ensure 80 access to safe drinking
  and sanitation to rural population in Africa by
  2015

10
RWSSI Targets (To Attain 80 Coverage by 2015)
11
Financial Requirements to Attain RWSSI 2015
Targets
Total Requirement US14.20 billion
12
The RWSSI Strategy

• Raising awareness about the RWSS situation in
  Africa
• Mobilization of more funds from ODA (Monterrey),
  RMCs, NGOs, communities
• Adoption of Fast Track Mechanisms
• Adoption of Demand driven Programmatic Approaches
  
• Sanitation focusing on hygiene and health
  education
• Emphasis on capacity building for decentralized
  Government institutions, communities, private
  sector and artisans
• Ensuring Beneficiary Participation, especially
  women
• Assuring Sustainability through use of
  Appropriate Technology
• Introducing appropriate ME systems

13
RWSSI Achievements to Date

• 12 Country Programmes approved by the AfDB Board
  for Mali, Rwanda, Ghana, Benin, Chad, Senegal,
  Uganda, Ethiopia, Morocco, Madagascar, Tanzania
  and Zambia.
• Total Programme cost amounts to USD 1.3 billion,
  of which ADF contribution of USD 494 million

14
Expected Outputs / Outcomes

• Programmes approved so far are expected to extend
  water and sanitation services to about 20 million
  rural people by 2009/10
• Programmes for an additional 11 countries
  (Mozambique, Eritrea, Burkina Faso, Mauritania,
  Niger, Nigeria, DRC, Cameroon and Angola) are
  expected to be approved in 2006 and 2007
  increasing ADB financing to USD 750 million (For
  total cost of USD 1.77 billion).
• Total people to be served from these programmes
  by 2010 will be 36 million
• ADB plans to maintain this level of RWSS funding
  to 2015, thus raising its RWSS financing from USD
  25 million up to 2002 to 200 million per year

15
African Water Facility - AWF

• The AWF is an outcome of the implementation
  of the objectives of the Africa Water Vision and
  Framework for Action for 2025 adopted at the 2000
  WWF in the Hague, which are
• Strengthening governance of water resources
• Improving water wisdom
• Meeting urgent water needs
• Strengthening financial base for desired water
  future

16
AWF Operational Programme (2005-2009)

• Key Areas of Intervention are
• Support for IWRM implementation in RMCs
• Support joint development of shared waters
  resources
• Support to water resources development programmes
  and projects preparation
• Investment for small-scale water infrastructure
  development.
• Two crosscutting components
• Establishment and enhancement of information and
  knowledge systems and management capacities
• Establishment of ME systems and capabilities

17
Eligibility for AWF Financing

• Central Government/Ministry or Agencies
• Local Government/Municipalities
• NGOs/CSO
• Community Based Organisations (CBO)
• Regional, sub-regional and sectoral organization
  (i.e. Regional Economic Organization)
• River Basin Organizations
• NGOs and CSOs will need to fulfill criteria
  establishing their credibility and track record
  in the water sector

18
Resources and Financing

• The AWF will mobilise EURO 500 million to finance
  its 2005 - 2009 operational programme from
• Donors Financial contribution Secondment of
  Staff Co-funding
• African Governments Financial Contribution
• Beneficiary Contribution Co-funding, provision
  of facilities, services and equipment Human
  Resources
• Commitment of EURO 60 million made so far

19
AWF Project Financing

• Project financing commenced in January 2006 and
  status is as follows
• Status No. Amount
• Completed 1 EUR 165,000
• Under Implementation 4 EUR 2,345,000
• Approvals for 2006 15 EUR 7,857,000
• In pipeline for 2007 31 EUR 32,153,000
  
• TOTAL 51 EUR 42,520,000

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What is Special about the AWF

• Home Grown African Ownership
• Pursues a negotiated approach to project
  formulation
• Flexible Eligibility
• Fast Access
• Fast Processing
• Quick Disbursement
• Leveraging Effect

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ADB For Sustainable Water Security In AFRICA
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