EAP Task Force Finance strategies for environmental infrastructure
- Slides: 8
EAP Task Force Finance strategies for environmental infrastructure Xavier Leflaive Paris, 23 February, 2007
Outline of the presentation EAP Task Force n Objective of the presentation n Context n Experience gained n Ways forward 2
Objective of the presentation n EAP Task Force Share information on the latest developments of the methodology Discuss ways forward Identify priority areas of work, possibly for after Belgrade 3
Context What is a finance strategy n A process n Objectives – To support the design of a national/regional strategy on environmental infrastructure (water, sanitation, waste) – To check the feasiblity of this strategy – To substantiate dialogue on targets regarding the level/quality of service (e. g. coverage, standard, technology) – To assess the financial options to finance these targets EAP Task Force 4
Context Why Finance Strategies? n Because of – Lack of realism – Need to take account of affordability • For households • For public budgets n Additional reasons – To provide a missing link between sector policies and programs and feasibility studies – To pave the way for external financing by providing clear and transparent data on financing requirements EAP Task Force 5
Experience gained in EECCA Country Region Georgia National Moldova National Urban water supply Urban sanitation Municipal Waste Kaliningrad Novgorod Pskov Rostov on Don Russian Federation Yaroslavl Khanty-Mansijsk (Kh. MAO) Leningrad Oblast + St. Petersburg Caucasus Mineral Water region National Kazakhstan Eastern Kazakhstan Oblast Ukraine National Armenia Lori and Shirak marzes EAP Task Force 6
Experience gained Selected outcomes from FS n Water – Substantiates a policy dialogue on the level of sevice for urban water supply – Contributes to the awareness that sanitation should be a priority issue and is affordable – Provides an estimate for the costs of achieving the MDGs – Rationale for a revision of tariff policy n Waste – Provides substantial input to a national/regional Master plan – Analyse capacity of the sector to attract private operators – Raises the issue of intermunicipal cooperation EAP Task Force 7
Ways forward Enhancing the relevance of FS n Reliability of data – Data collection – The case of rural areas n Relevance of alternative scenarios – Identify the appropriate policy options (level of service, geographical aggregation, etc. ) n A focus on implementation – Plugging the finance strategies into • The revision of PRSP • Budgetary decision making (MTEF) • Tariff setting procedures – Monitoring the implementation (performance indicators) n Revising finance strategies, to account for – New demand forecasts – Updated costs – Revised potential revenues EAP Task Force 8
