The Bank and the Nile Basin Initiative

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1 The Bank and the Nile Basin Initiative Water Week February 2004 Ashok Subramanian/Jakob Granit

2 Historical legacy tensions opportunities the Nile a source of conflict or an opportunity? From sharing water (quantity) to sharing benefits - incentives for cooperation; wide range of potential benefits: Environmental: to the river e.g. water quality Direct economic: from the river productive use e.g irrigation Reducing costs: because of river e.g. conflicts Indirect economic: beyond the river e.g. integration

3 Africa s natural legacy: climate variability

4 flood & drought: Kenya 10/97-02/98 flood infrastructure damage $ 2.39 b 10/98-05/00 drought 10/97-05/00: whole period variability as GDP % crop loss livestock loss reduc. Hydro Pw production reduc. industr. production Total drought Cost of climate variability approx GDP $ 0.24 b $ 0.14 b $ 0.64 b $ 1.39 b ($9b/yr) $ 2.41 b $ 4.8 b $ 22 b 22%

5 Nile Basin geography & challenges 10 countries: Burundi, D.R. Congo, Egypt, (Eritrea), Ethiopia, Kenya, Rwanda, Sudan, Tanzania, Uganda 300 m people 100 million in the basin Poverty: 4 of 10 poorest Climate variability Landscape vulnerability Nothing flows.

6 Shared vision for development Nile Basin Initiative: To achieve sustainable socio-economic development through equitable utilization of, and benefit from, the common Nile Basin water resources

7 The Nile Basin Initiative - Development framework Riparian owned & managed Highest-level commitment IS NOT a new economic grouping IS managing/developing river; removing barriers preventing cooperation; promoting regional benefits to flow beyond river Shared Vision Shared Vision Program Subsidiary Action Prog. Action on the ground

8 ICCON International Consortium for Cooperation on the Nile Nile Basin Trust Fund International Burundi DRC Egypt (Eritrea) Ethiopia ICCON Partnership Canada Denmark Finland Germany Italy Japan Netherlands Norway Kenya Rwanda Sudan Tanzania Uganda Sweden UK USA AfDB FAO GEF UNDP World Bank Interest from France, EC, Arab funds, other donors, NGOs Discourse

9 The Shared Vision Program Basin-wide enabling environment Benefit Sharing Development Scenarios Private sector engagement Environment Strategic framework & transboundary action Power Trade Power forum Power development options Investments for Socio-Economic Development Water Resources IWRM Policy & Planning Communication, information & analysis platform Agriculture Cross border exchange Regional Consult. & Training Applied Training Training institutes & curriculum Communication Public information Stakeholder involvement

10 Nile Transboundary Environmental Action Preparation of project Nile River Basin Transboundary Environmental Analysis, 2001* A collective synthesis of basin-wide environmental trends, threats and priorities. Agenda for Environmental Action basis for joint investment opportunities * Resembles SAP in GEF terminology

11 Nile Transboundary Environmental Action* Objectives Provide strategic framework for management of transboundary water & environmental challenges Improved understanding of relationship of water resources development & environment Provide forum to discuss development paths with wide range of stakeholders Major Components 1. Institutional strengthening, knowledge base and information management 2. Community-level land and water conservation 3. Environmental education and awareness 4. Wetlands and biodiversity conservation 5. Basin-wide water quality monitoring * GEF/UNDP, GEF /WB and NBTF funded

12 NBI: Subsidiary Action Programs Major transboundary investment projects, planned at lowest appropriate level, within basin-wide framework: seeking win-win Nile Equatorial Lakes Eastern Nile International Nile Discourse Coop. Fmwk. Preparation $25 m; investment - phase I $2-3 bn; longer term > $20 bn. Ethiopia Eastern Nile Eritrea Sudan Egypt Burundi Rwanda Tanzania Southern Nile Kenya DRC Uganda Nile Basin

13 Nile Equatorial Lakes Subsidiary Action/Investment Program Environment & Natural Resources Management & Development 3 River Basin Management & Development Projects (Mara, Kagera, Sio-Malaba-Malakisi) Fisheries & Catchment Management Project for Lake Albert and Lake Edward Regional Agriculture project Hydropower Development & Transmission Interconnection Ranking and Feasibility Study of HEPs in NEL-region turned into SSEA and Power Options Analysis Rusumo Falls HEP Key regional transmission interconnection projects: Water Hyacinth Abatement in the Kagera River Ken-Uga; DRC-Bur-Rwa; Bur-Rwa; Uga-Rwa

14 Strategic/Sectoral Social and Environmental Assessment (SSEA) of Power Development Options Burundi, East DRC, Kenya, Rwanda, Tanzania, Uganda Build on national power master plans, regional plans, with linkages to existing power forums. Consultations with key stakeholders, Bank and riparian countries Expected outcome: power strategy with different power development options, and assessment of economic and engineering feasibility, environmental and social impacts - least cost options

15 Eastern Nile Subsidiary Action/Investment Program Estimated Costs (US$ m) Sub-project Eastern Nile Planning Model Baro-Akobo Multi-Purpose Water Resources Flood Preparedness & Early Warning Ethiopia-Sudan Transmission Interconnection Eastern Nile Power Trade Investment Program Irrigation & Drainage Development Watershed Management E Nile Tech Regnl Office IDEN Preparation Total Investment estimate

16 Role of the World Bank in support of the NBI 1. Faciliate the political process of engagement ( development diplomacy ) 2. Technical assistance & process support (with many donors) at both the national and transboundary level 3. Promote, prepare, package, and coordinate investment financing 4. Continue explore/research issues such as water resources and economics, benefits of cooperation, innovative finance tools etc.

17 Cooperation Continuum Communication and notification Information sharing Regional assessments Identify, negotiate and implement suites of national investments that capture incremental cooperative gains Adapt national plans to mitigate regional costs Adapt national plans to capture regional gains Joint project assessment and design Joint ownership Joint institutions Joint investment Dispute Cooperation Continuum Integration Unilateral Action Coordination Collaboration Joint Action

18 Pointers. Time : Work with International Waters requires long term engagement and support for process, costly Commitment: Need for continuous articulation of commitment at various levels in countries and in Bank/partners Returns to Cooperation: Commit to supporting high impact investments substantial returns to cooperation, challenge of delivery, project financing Risks: Constant effort to identify and mitigate risks

19 Pointers. Environment: Never too early to start appreciation and analysis of environment & social/participation dimensions Institutions: Live with fit for purpose institutional arrangements Flexibility in roles (facilitator/financier) and forms of support objectives change as cooperation grows Partners: the scope of work is large and multi-pronged so need many partners comp advantage and share risks