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Document Sample
EuropeAid
European Community contribution
towards
the Water sector
Visit of H.R.H. Prince
Willem-Alexander of Orange
Chairman of the UN SECRETARY-GENERAL'S
ADVISORY BOARD ON WATER AND SANITATION
(UNSGAB)
19 September 2007
1
EC contribution towards Water and Sanitation EuropeAid
Content of the presentation :
• The EU and the EC as development donor(s)
• EC Development Cooperation
• Water and Sanitation MDGs achievement at risk
• EC policies and activities in the water sector
• The wider context of the environment
2
The EU as a Donor EuropeAid
The EU is the largest donor in the world
27 + 1 donors together are responsible for 56% of all development aid
(2006: €47 billion)
The European Commission on its own is
•Sixth largest donor of development aid, after USA, UK, Japan, France
and Germany
•Second largest donor of humanitarian aid
•Present in more than 139 countries and overseas countries and territories
3
0,2
0,4
0,6
0,8
forecast 2010, objective 2015
ODA percentage of Gross National Income, actual 2006,
The EU as a Donor
Source: European Commission, COM (2007) 164 of April 2007 (final draft)
0
1
S w eden
Lu xem bu rg
Neth erlan ds
D en m ark
Irelan d
UK
B elgiu m
A u stria
Fran ce
Fin lan d
Germ an y
S pain
Portu gal
Italy
Greece
M alta
Czech Rep
2015
S loven ia
H u n gary
Cypru s
S lovak Rep
Polan d
Lith u an ia
2006
2010
Eston ia
Latvia
B u lgaria
Rom an ia
EuropeAid
4
EC Development cooperation EuropeAid
Community and external aid budget 2006
External aid €12 bn,
10% EuropeAid
EDF fund
Non-EuropeAid
€3.4 bn, 28%
budget €4.5 bn,
37%
Community budget inside EU: EuropeAid budget
€110 bn, 90% €4.2 bn, 35%
EuropeAid implements development aid. This excludes pre-accession aid,
humanitarian aid, and CFSP (political actions). Com budget includes EDF
5
EC Development cooperation EuropeAid
Programming process
• General EU Budget agreed every seven years (2007-2013)
• External aid: 4-year strategies per country, region or theme (e.g. human
rights) with global financial envelopes
• Consultation process with EU member states and European Parliament
• Per year: strategy detailed in work programmes with projects; subject
to consultation with member states
• Time: agreeing strategy takes 12-18 months, preparation of annual
programmes takes 12 months
• Always extensive consultation with civil society, stakeholders and
government in recipient countries
6
EC Development cooperation EuropeAid
Financial envelopes per region 2007 - 2013
Geographical coverage
• IPA : Instrument for Pre-Accession 11.5 Billion €
Balkan countries, Turkey
• ENPI : European Neighbourhood and Partnership Instrument 11.1 Billion €
Maghreb, Machreck, South Caucasus, Ukraine, Moldova, Byelorussia + Russia
• DCI : Development Cooperation Instrument 10.1 Billion €
Latin America, Asia, Central Asia
• EDF : European Development Fund 22.7 Billion €
Sub Saharan Africa, Caribbean and Pacific countries
General coverage
Thematic programmes: included in DCI 6.7 Billion €
Non-State actors and local authorities, investing in people, environment, food security,
migration and asylum
• EIDHR : European Instrument for Democracy and Human Rights 1.3 Billion €
7
EC Development cooperation EuropeAid
Aid Modalities
International Org:
WB / UN 6%
Budget support 21%
Classical Sector projects* 9%
‘Stand-alone’
projects 51%
Non-state actors 13%
Based on €7.5 bn commitments 2005, WB/UN based on transfers in 2005. Note that
Sector projects are part of a sector-wide approaches 8
Water & Sanitation MDG Achievement at risk EuropeAid
Situation in 2004
At the current rate of
progress, Sub-Saharan Africa
will miss the Millennium
Development Goals of halving
by 2015 the proportion of
people without access to safe
water & sanitation by an entire
generation for Water and by
more than two generations for
Sanitation.
9
Commission allocation to the Water sector (a) EuropeAid
Geographic allocations 2004 – 2007
EC commitments in Water from 2004 to 2007 by region
In Million Euro
Total
€1.4 Billion
ACP-WF ACP
412 456
30% 32%
TACIS
39,5
3%
MEDA
AFS
165
160
12% ASIE ALA
12%
109 46
8% 3%
10
EuropeAid
Commission allocation to the Water sector (b)
Past - present - future
EC's commitments in Water and Sanitation from 1990 to 2010
600
Millions
500
400
Forecast
WF
300
Regional
Bilateral
200
100
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
11
Commission allocation to the Water sector (c) EuropeAid
By aid modalities
EC commitments in Water and Sanitation by Aid modality from 2004 to 2007
600
M illions
500
WF
400
WF
300
WF
SPSP
200 SPSP
SPSP
100
PROJECTS
PROJECTS SPSP
0 PROJECTS PROJECTS
2004 2005 2006 2007
WF = Water Facility – SPSP = Sector Policy Support Programs - Project = Individual Projects
12
Tackling challenges of the Water sector EuropeAid
requires attention to :
• The water crisis as a governance crisis - closely related to
decentralisation and corruption
• Raise policy leaders’ awareness on water issues – its importance
and the need to focus on least favoured – poorer countries/regions
• Human rights linked to access to water & sanitation
• Promote holistic vision of water resources management considering
equally all usages
• Water resources and impact on climate change and environment
• Potential conflicts related limited water resources
• Promote cross country cooperation
• Privatisation vs nationalisation 13
Challenges: the limits of privatisation EuropeAid
14
The Commission activities EuropeAid
1. ‘Classical’ stand-alone projects
2. Promotion of sector policy
3. Promotion of governance and dialogue
4. Promotion of Integrated Water Resource Management
5. Support to transboundary river basin organisation
6. Intergovernmental cooperation
7. Raising awareness on corruption
8. The Policy: the EU Water Initiative
9. ACP – EU Water Facility
15
1. Classical projects : examples EuropeAid
• Water and Sanitation, Water supply and sanitation in the rural
areas of Nicaragua – 11M€
• Support to the Euro-Mediterranean information system on Water
(Mediterranean Countries and the Middle East) – 6 M€
• Southern Africa Development-Hydrological Cycle Observing System
(SADC-HYCOS) 2.4 M€
16
EuropeAid
2. Promotion of sector policy (a)
Definition of Sector policy : the government view
• A government owned sector policy and strategy:
o government vision and objectives in the water sector.
• A medium term expenditure programme:
o clarifies the expected level of internal and external resources and
how these will be utilised
• Based on a consultation
o establishes through participation a shared strategic framework for
water
• Government driven coordination
o to gain support from donors on national objectives.
• Needs performance monitoring system
o to measure progress towards the achievement of policy objectives
and targeted results.
• Needs strong institutional capacity
o to plan, manage and implement the sector policy and action
programme
Supported through a sector policy support programme,
preferably in coordination with of donors 17
2. Promotion of sector policy (b) EuropeAid
EC Sector policy support programme : examples
• Reasons for Success: Samoa and South Africa
o The Strategic Framework process achieves high level of buy-in
o High level political and administration commitment
o High level commitment from institutions and individuals
o All stakeholders have an understanding of common purpose
o Discussions make up the collaborative policy process
• Difficulties: Egypt and Bolivia
o No clear government leadership and commitment to reform
o Donors are driving the process – little ownership
o Lack of participation and consultation
o Hidden agenda eg: maintain status quo
18
3. Promotion of governance and dialogue (a) EuropeAid
Addressing governance in the water sector: What it is about
• Development of dialogue between public and private actors and civil society
• Create the dynamics enabling to hear the needs of the least favoured
• Support institutional and legal reform processes
• The concept of integrated water resources management implies a focus on
governance principles such as:
o Participation (including the role of local authorities and women)
o Transparency
o Accountability
o Involvement of different levels of government
o Clear division of roles and responsibilities at all levels
o Capacity development as an instrument to improve governance
19
3. Promotion of governance and dialogue (b) EuropeAid
The EU Water Initiative: The Ethiopian Country Dialogue
• Objectives :
o To contribute to the achievement of Water and Sanitation related MDGs through
improved coordination and strategic planning
o Consensus of stakeholders; support of Donors
• Areas of activities :
o Policy and Regulation;
o Planning, Financing, Information, Monitoring and Evaluation ;
o and Implementation & Coordination
• Results:
o A draft Sector Review Report and a draft Financing Strategy
o Clearly demonstrated the collective commitment
o Agenda for more of a programmatic sector approach
o Take forward donor harmonisation and coordination
20
4. Promotion of Integrated Water resources
EuropeAid
Management (IWRM) (a):
IWRM aims:
o to promote more equitable access to water resources in order to
tackle poverty.
o to ensure that scarce water is used efficiently and for the greatest
benefit of the greatest number of people, and
o to achieve more sustainable utilisation of water, including for a
better environment.
Finite and vulnerable Participatory approach, Central role of
resource, essential to: Water has a value
involving all women
Life, development and as an economic
stakeholders.
environment. good as well as a
social good.21
4. Promotion of Integrated Water resources EuropeAid
Management (IWRM) (b):
Masibambane III – South Africa
New project, EC Contribution: €107m
Objective
• Better water management for economic growth
Challenges
• Engaging stakeholders: catchment management agencies,
local governments, industry, farmers and civil society
organisations
• Identifying alternative financing mechanisms for
sustainable water resource management
Useful starting point
• The Department for Water Affairs is strongly committed
22
5. Support to Transboundary river basin EuropeAid
organisations
Support concerns the following :
- Capacity building
- Organisational support
- Governance
- IWRM plan implementation
- Technical and scientific study support
Examples:
Nile Basin Initiative (NBI) is a partnership initiated and led by the riparian states of
the Nile River. The NBI seeks to develop the river in a cooperative manner, share
substantial socioeconomic benefits, and promote regional peace and security. (EC
support of 20M€)
IWRM Programme for transboundary basin organisations in Africa (10M€):
Support to 5 river Basins: Lake Chad, Niger Basin, Orange-Senqu, Kagera, Volta
23
6. Intergovernmental cooperation EuropeAid
Pilot projects on transboundary cooperation (2008) : 7M€
• to enhance resource protection against erosion, contamination,
• to improve planning for access to safe water and sanitation,
• to promote harmonised decision processes,
• to adjust technical decision to the need and the capacity of the parties
Ili-Balkhash basin : Kazakhstan – China – Kyrgyzstan
Use the good relationships established between Kazakhstan – China in
Energy Sector (Oil, Gas), trying to avoid another “Aral Sea” catastrophe.
Rio Coco : Nicaragua and Honduras
To promote discussion forum between Governments
To develop local platforms of dialogue
Supporting African Union
towards an improved transboundary Cooperation in Africa, capacity building
24
7. Raising awareness on Corruption EuropeAid
Preliminary thinking on prevention of corruption
Key points
• The global water crisis is primarily a crisis of governance and corruption
• Corruption siphons of water through mismanagement and misallocation results in :
o Water shortage for poor
o Desertification and draught
• World bank suggest that 20% to 40% of financial resources are being lost
• Cost of corruption affect primarily the poor and the environment
Possible measures
• Mobilise political support and engage leaders
• Align anti-corruption measures with national governance reforms
• Raise public awareness, capacity building
• Support decentralisation and public participation
25
EuropeAid
8. EU Water Initiative
• The policy framework for EU member states’ and EC support to the
water sector
• In response to national priorities and demands
• Aims to contribute to the water related MDGs and to targets of the
World Summit on Sustainable Development
Achievements:
• The EU Water Facility
• Realisation of national water sector dialogue
• Support to transboundary river agencies
26
EuropeAid
9. ACP–EU Water Facility (a)
• Focus on governance and ownership
• Development of infrastructures
• Promote Civil Society involvement
• Promote partnerships (State actors, NGOs, public bodies,
decentralized cooperations, international organisations, private
sector)
• Total amount = €500M in two tranches.
• 175 actions financed with expected results: 20 million people to
access to water; 9 million people with access sanitation; 7
million people to benefit hygiene & education
27
EuropeAid
9. ACP–EU Water Facility (b)
Private Sector Participation
Involvement of private sector in the delivery of water services
is a local government prerogative
However:
Starting point: leveraging private funds via private sector
participation. This did not happen
ACP water sector not ‘attractive’ for private investments: too
risky
Call for proposal perhaps not right tool: non-profit rule and
PPP complicated process
Reference documents: COM(2002)132 and COM(2003)326
28
Climate Change and its possible consequences
EuropeAid
on Water Resources
• Changes in regularity & volume of precipitation: more
floods, extended draughts
• Inter-governmental Panel on Climate Change: Risk of
African population suffering from lack of water to increase
from 47% (2000) to 65% (2025).
EU Actions on Climate Change
• EU Action Plan related to the Communication “Limiting
Global Climate change to 2°C” in which reduction of Green
House Gases emission targets for EU countries are developed;
• Green Paper on “Adapting to Climate Change - Options for
EU action” focussing on EU actions but including also activities
in favour of developing countries.
29
EU Actions on Climate Change ctd. EuropeAid
EC actions in relation with developing countries:
● awareness raising, capacity building, technology transfer, political
dialogue in view of post-2012 Kyoto agreement
● support recipient countries’ National Adaptation Plans of Action, as
part of the UN Convention on Climate Change
● mitigation: curbing deforestation, promoting renewable energies
and energy efficiency
● mainstreaming environment in development aid by use of:
Country Environment Profiles which describe the main
environmental stakes to be taken into account in the programming
cycle,
Strategic Environmental Assessments which analyse possible
impacts of sector policies,
Environmental Impact Assessments which aim at identifying
possible negative impacts at project level
30
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