African Development Bank Water Sector Activities & Business Opportunities

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1 African Development Bank Water Sector Activities & Business Opportunities by Sering JALLOW Manager, Water & Sanitation Division North, East & South Region OIC, Water & Sanitation Department & African Water Facility

2 Regional Context...1 Snapshot of current situation About 4% available water resources developed. 6% cultivated land irrigated. Less than 6% of hydropower potential developed Less than 200 m 3 /capita average storage capacity By 2025, 25 African countries will face water scarcity or stress climate change will exacerbate situation.

3 Global trends for drinking water by regions 330 million people (37%) out of the 884 million people in the world who do not use improved water sources are from Sub Saharan Africa. Sub Saharan Africa (37%) Source: JMP, 2010

4 Global trends for sanitation by regions Sub Saharan Africa accounts for 21.7% (565 million people) of the 2.6 billion people in the world who do not use improved sanitation. Sub Saharan Africa (21.7%) Source: JMP, 2010

5 Bank Response to water sector challenges... 1 IWRM POLICY Social + Economic + Environmental uses Cost recovery, PSP, Gender Capacity building, regulatory policy env. Participation, PSP, Transboundary cooperation STRATEGIC FOCUS MTS Increase financing for Water Focus on poorest 65% in rural areas Support urban, peri-urban, small-medium towns Promote Transboundary WRM KEY INITIATIVES African Water Facility Rural Water Supply and Sanitation Initiative Multi-donor Water Partnership Program

6 AfDB Water Sector Institutional Framework Bank Policies; Strategy NEPAD & Regional Regional Integration Integration Dept. Dept. Agric. Dept. Energy Env Climate Change ADB / ADF Funds (PPF/MIC/ Donor TF) Irrigation; Natural Res. Mngt. AWF Facilitation and small investments Hydropower UWSS; IWRM; TBWRM Water & Sanitation Dept. RWSSI (80% rural Access by 2015) RWSSI Trust Fund MDWPP: Bank RMC capacity, tools, Policy, knowledge sharing Trust Funds IPPF NEPAD Water & Sanitation Programme Multi national programmes focusing on water security Sustainable Water Resources Development and Management in Africa

7 Key Highlights (1) Financing and Portfolio.. Financing increased from average USD 70 million per annum to over USD 700 million in active projects in 35 countries. Total about Euro 1.7 billion (UA 1.63 bn). 56% UWSS, 44% RWSS , 00 0, , 00 0, , 00 0, , 00 0, , 00 0, , 00 0, , 00 0, , 00 0, , 00 0, ** IOP 2002 * 2010 Total Non-RWSSI approved (UA) 50 new operations planned for with ADB Group financing of about Euro 2 billion (UA 1.9 billion). IOP 2011 Total RWSSI approved (UA) IOP 2012 IOP 2013

8 - About 55% of the Portfolio are Urban WSS - Activities include: - Feasibility Studies, Designs - Water Sector Reforms - Infrastructure Development - Efficiency Gains - Non Revenue Water Reduction - Improving billing and revenue collection - Tariffs - PSPs / PPPs /WOPs - Institutional Development (Service providers & Regulators) - Knowledge management

9 Key Highlights (2) Initiatives.. RWSSI Goal Objective: To accelerate access to drinking water supply and sanitation in rural Africa in a sustainable manner Targets 80% Coverage by 2015 Water: 270 million people Sanitation: 295 million Strategy To ensure that 80% of the rural population in Africa has access to safe drinking water supply and sanitation by 2015 Demand Responsive Programme Approach, building partnership, Mobilize more funds, fast tracking, appropriate technology

10 RWSSI Investment Requirements and Financing Investment Requirements (in billion USD) Programme Phases Total AfDB Donors Governments & Communities Phase I ( ) Phase II ( ) Phase III ( ) Total RWSSI Financing Plan

11 RWSSI Trust Fund.. Key Information The RWSSI Trust Fund provides a channel for Donors: To scale up their financing for the water sector to earmark resources to the Bank for the financing of RWSS Programmes. to support countries where they do not have a strong presence Help to get off track countries back on track RWSSI TRUST FUND Established in 2005 Contributions of app Euro 116 million: Governance France (40M), Denmark (30M), the Netherlands (20M) Canada (24M) Switzerland (1.5M) Donors form the Steering Committee Steering Committee approves annual work programme ADB Board approved Individual projects

12 RWSSI Achievements 70% of Phase 1 financing realized. US$ 1.35bn deficit Phase I Results (With Bank + RWSSI TF financing) 28 programmes approved in 23 countries Total financing Euro 2.7 bn Bank Euro 0.76 bn RWSSI TF Euro 0.08 bn Leveraged Euro 1.9 bn from Donors and African Governments 33 million Rural population served with safe water supply at the end of million Rural population served with improved sanitation at the end of 2010 Higher priority given to RWSS Programmatic approach in 60% RWSSI interventions Increased use of country systems Enhanced community action; Gender issues mainstreamed Coordination and harmonization of donors Quicker programme development and start up

13 N DIV PROJECT COUNTRY TASK MANAGER APPROVAL DATE TOTAL APPROVED 1 OWAS1 PROJET GESTION INTÉGRÉE BASSIN GOUROU Côte D'Ivoire BA Keba 24-Nov-10 23,000, OWAS1 WATER AND SANITATION Liberia MUGOYA Tom Robert 19-May-10 25,200, OWAS1 PROJET D'AEPA EN MILIEU SEMI URBAIN Cameroon HORUGAVYE Patrice 28-Jan-09 40,000, OWAS1 PROJET EAU ET ASSAINISSEMENT 3 PREFECTUR Centrafrique BARA POLOUMBODJE Sylvie 3-Nov-09 9,944, OWAS1 AEPA en milieu rural Cameroon BELLA Aimée 12-May-10 14,783, OWAS1 DEUXIEME SOUS-PROGRAMME AEPA EN MILEIU R Senegal EL ARKOUBI Mohamed 18-Feb-09 30,000, OWAS1 WATER & SAN. FOR OYO AND TARABA STATES Nigeria MUGOYA Tom Robert 2-Sep-09 50,000, OWAS1 THREE TOWNS WATER SUPPLY PROJECT Sierra Leone MUGOYA Tom Robert 26-Oct-10 27,300, OWAS2 SMALL MED TOWNS WATER SUPPLY & WASTE WAT Kenya CHANDA Osward Mulenga 3-Nov-09 70,000, OWAS2 Zanzibar Water and Sanitation Project Tanzania DZIMIRI Paul 11-Nov-08 27,807, OWAS2 RURAL WATER SUPPLY AND SANITATION PHASE Tanzania DZIMIRI Paul 15-Sep-10 64,900, OWAS2 KAMPALA SANITATION PROGRAM Uganda HAMZA Amel Abdel Rahman 16-Dec-08 35,000, OWAS2 LAKE VICTORIA WATER AND SANITATION PROG. Multinational ALEMSEGED Eskendir 17-Dec-10 72,980, OWAS2 NKANA WATER SUPPLY AND SANITATION PROJ. Zambia ASSEFAW Mecuria 27-Nov-08 35,000, OWAS2 Sumbe Water Supply, Sanitation and Insti Angola ADHIAMBO Nancy Aileen Nereah Ogal 28-Nov-07 12,000, OWAS2 NATIONAL RURAL WATER SUPPLY PROGRAM Mozambique ALEOBUA Boniface Osimua Yakubu 9-Nov-10 10,634, OWAS2 Niassa Prov Towns Water and Sanitation Mozambique ALEOBUA Boniface Osimua Yakubu 29-Apr-09 18,000, OWAS2 NATIONAL WATER DEVELOPMENT PROGRAM Malawi ALEMSEGED Eskendir 2-Jul-08 29,074, OWAS2 AEP DE ZONE COTIERE RABAT-CASABLANCA Morocco BEN SASSI Belgacem 12-May ,710, OWAS2 PROJET D'EAU POTABLE ET D'ASSAINISSEMENT Comoros OUTAGUEROUINE Sidi A. 17-Dec-09 9,964, OWAS2 NAIROBI RIVERS BASIN REHABILITATION AND Kenya CHANDA Osward Mulenga 6-Dec-10 35,000, ,299,642.11

14 Key Highlights (2) Initiatives: Water Partnership programme (WPP) Goal..promote planning of water programs within an integrated framework in the Bank and in countries Objectives operationalize the Bank's IWRM Policy create awareness on and enhance commitment to IWRM in Africa support the coordinating efforts of the Bank with respect to the implementation of the AWV, MDG targets.. Target: Bank, RMCs, Regional and sub-regional organizations.

15 Key components WPP Strategies on knowledge Management Focuses on Providing Support to: Bank s operations capacity; Water information and data management at AfDB; IWRM outreach and knowledge sharing; and Transfer of best practice and experiences;... and Governance Arrangements Donors form the Steering Committee Steering Committee approves medium term programme ADB, OIVP approves Annual Programme OWAS Director approves individual activity

16 Partners and Contributions Contributions Netherlands Commitment Canada Commitment Denmark Commitment Total Pledged Total Contributions Received to Date USD 5 Million CAD 5 Million DK 15 Million Euro 9.08 million About 80% of pledged funds

17 Strategic Activities.. Activity Strengthening IWRM Planning: Innovative financing mechanisms Agricultural Water Management Rainwater Water Harvesting Africsan+ 5 Conference World Water Fora African Water Week 1 & 2 Collaborators AMCOW, GWP, IWMI, SADC, WSP WSP, WB IFAD, WB, IWMI, FAO NGOs, CBOs AMCOW, WB, WSP AMCOW, AU, UN Water, ECA, NEPAD, GWP, WWC, IWMI, UN HABITAT, FAO, ANBO, ANEW, MDPA, WTF, WBOs, UNEP, WMO

18 Some Results.1 African Water Facility established, contributing to sector development in Africa in a major way RWSSI development, contributing substantially towards the attainment of the WSS MDG targets Dialogue on key water sector challenges promoted through support to : - Bank Water Week, African Water Week series, Africasan+5, WWF (2, 3, 4 and 5)

19 Some Results 2 Key products for operational use developed: Guidelines for Water User Fee and Cost recovery Guidelines for Water Harvesting Handbook on Wetlands Assessment Guidelines for WSS provision in Schools Water and Poverty Linkages in Africa Studies on Financial Instruments to Facilitate Investment for Water Agricultural Water Development in Africa Water Governance Study

20 Key Highlights (2) Initiatives: the African Water Facility..The African Water Facility (AWF) is an Instrument for the successful implementation of the Africa Water Vision and Framework for Action for 2025

21 AWF Special characteristics A home grown initiative Demand driven Innovative & Catalytic projects with variety of means and approaches Broad Eligibility Small & medium size project Flexible & fast tracking

22 Governance Structure The AWF was legally established in May 2004 and commenced operations in 2006 AWF hosted by ADB on the request of the African Ministers Council on Water (AMCOW). The AWF s operations are guided by its Governing Council and implemented according to the rules of the African Development Bank. The Governing Council has 13 members comprising 5 members are appointed by AMCOW, 5 members appointed by the donors to the fund, 1 member appointed by the AfDB, 1 member appointed by the African Union, and 1 member appointed by UN-Water/Africa.

23 AWF Operational Areas

24 AWF Partners - EC - Canada - France -Sweden - UK -ADB -Australia -Gates Foundation - Denmark - Norway - Austria -Algeria - Spain -Senegal Total Funds Mobilized: About 135 million

25 WHO CAN ACCESS AWF FUNDING? Recipient Eligibility (central government, municipalities, NGOs, RBOs, regional & subregional organizations) Project eligibility: Project must fall into one or more of the areas of intervention& have clear performance indicators Ceiling for grants: 50,000 to 5 million Euros

26 AWF PORTFOLIO 67 projects approved ( 80 million) Transboundary Country projects Project More than 28 countries and 8 regional institutions are benefiting from AWF support So far leveraged over 300 million

27 Experiences & Lessons Learnt Effectiveness assessment carried out in 2010 Has been providing good support for TBWRM AWF project development has already leveraged over Euro 300 million There is a large and diverse demand for AWF support The flexibility AWF provides in its interventions is appreciated by beneficiaries The AWF has put in place functional and effective project processing systems Fast-track project processing is a main characteristic of AWF AWF strategy under revision to better respond to the assessment findings AWF seeking new donors and partners

28 THANK YOU