Europe Aid Implementing Development Aid The Water Supply

Europe. Aid Implementing Development Aid The Water Supply and Sanitation Sector DEVCO Europe. Aid Development & Cooperation DG Dead Sea March 2011 Feb. 2011

1 Europe. Aid Water sector Challenges Feb. 2011

Water the world situation Feb. 2011 Europe. Aid 3

Why to intervene on Water (1) Europe. Aid • UN resolutions on water (2009 -2010). • European Consensus for Development (2005). • MDG / Target 10 • N-Y Summit (09. 2010) : President Barroso announcement of € 1 billion for MDG initiative Feb. 2011 4

The EU is part of the international aid framework – Millennium Development Goals Feb. 2011 Europe. Aid 5

Water and Sanitation - MDGs Europe. Aid Goal 7: Ensure Environmental Sustainability o Target 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation o Indicator n° 30. Proportion of population with sustainable access to an improved water source, urban and rural Indicator n° 31. Proportion of population with access to improved sanitation, urban and rural Feb. 2011 6

2004 -2009 Europe. Aid The EC Commission programmes gave access: • To improved drinking water to 32 million persons. • To improved sanitation facilities to 9. 5 million persons. • WSS Sector improvements on more than 50 countries mainly in Africa, Pacific and South Neighbourhood. Feb. 2011 7

DEVCO main orientations Europe. Aid • To increase the number of countries where water is a focal sector in the NIPs. • To encourage the financing of projects in the context of a Sector Wide Approach environment. • To start an IWRM structured dialogue in countries where this is possible. In order to promote governance in the WSS sector. • To start using Budget Support as the main aid method of development. Feb. 2011 8

DEVCO Key Challenges Europe. Aid • Water and climate change. Effects in the water cycle. • Capacity development and good governance in the water sector and strengthening of water resources management • Trans Boundary water resources management • Demand side management of water. Agriculture consumes more than 75% of water in the developing world. . • Sector attractiveness to private sector. Feb. 2011 9

2 Europe. Aid Policies Feb. 2011

What is Water (1) Europe. Aid • Scarce resource, unequally distributed all over the world • Renewable Natural resource? • Human right or human need • Basin dimension • Trans-boundary considerations • Water transport : costs & impact • Duality : public good and/or economic value ? Feb. 2011 11

What is Water (2) Europe. Aid Water sector covers Water and Sanitation WASH means Water Sanitation and Hygiene Why is Hygiene so important 12 Feb. 2011 © Water. Aid

Other policies linked to water Europe. Aid Agriculture Urban development Conflict prevention Transport Economic development Trade Security Rural development Rule of law Education Water Research Energy Environment Food security Good Governance Migration Gender Industry Health Human rights Feb. 2011 13

Water - what are we doing on policies? Europe. Aid • EU Water Framework Directive of 2000: overarching legislation that aims to harmonise existing EU water policy. • EC Communication and Council resolution of 2002: Water management in developing countries policy and priorities for EU development cooperation. • EU Water Initiative of 2002: Policy instrument to bring together stakeholders. Platform for governments for a continuous dialogue. Feb. 2011 14

3 Europe. Aid Financing instruments Feb. 2011

Water – what are we doing? (1) Europe. Aid is delivered all over the world but for Water and Sanitation the greatest percentage has been given to ACP and neighbourhood countries ACP 68% Neighbourhoo d 24% Asia 4% Latin Americ a 4% Feb. 2011 16

Water - what are we doing on financing? (2) Europe. Aid • Geographical Programmes National and Regional Programmes (DCI, EDF, ENPI). • In total for the period 2003 -2010 € 2, 9 billion committed for WSS projects, 24% for ENPI countries. • ACP-EU Water Facilities (9 th and 10 th EDF) Boost the sustainable delivery of water and sanitation. € 700 million committed. Feb. 2011 17

Water - what EU is doing on financing? (3) Europe. Aid • NIF (Neighbourhood Investment Facility) launched in 2008, EC contribution € 0, 7 billion for the period 2007 -2013; 7 water projects total cost € 0, 5 billion. Leverage effect 34: 1. • FEMIP (Facility for Euro-Mediterranean Investment and Partnership); EIB Fund. 18 WSS projects financed by € 1, 1 billion (2002 -2009). • EBRD: 1991 -2010 78 projects of Municipality and Environment Infrastructure amounting € 1, 38 billion (60% WSS). • Africa-EU Infrastructure Trust Fund: launched in 2007, managed by EIB. Triggered projects of a total budget of € 1, 38 billion. Leverage effect 14: 1. Feb. 2011 18

Water - what are we doing? 2003 -2010 € 2, 9 billion. • • ACP countries Neighbourhood Latin America Asia € € 2, 0 0, 7 0, 1 Europe. Aid billion (68%). billion (24%). million (4%). • SBS was the main aid modality for 2007 -2010 : 60% excl. WF. • WF represent more than 25% of WSS financing. • Regional programs represent only 4% of WSS financing excluding WF. Feb. 2011 19

Water projects European Commission - Europeaid 2003 -2010 Feb. 2011 Europe. Aid 20

Europe. Aid Feb. 2011 21

WSS sector characteristics Europe. Aid • Complex, multi-sector, multiple usage => need for strong regulation mechanism =>need for leadership at national level • Need for effective decentralisation/devolvement process as multiple layers involved • Soft component very important (capacity building at the different levels, sensitisation campaign, . . ) and takes time Governance – Governance Feb. 2011 22

Water the way forward Europe. Aid • Focus on ACP countries and Sanitation are priorities on the way to reach MDGs. • Dialogue with other donors for better coordination of water and sanitation projects • A more structured dialogue between the EC, EIB and IFC* on innovative private sector led approaches to water and sanitation, building on complementarities between the three institutions. *International Finance Corporation Feb. 2011 23

Europe. Aid THANK YOU! Feb. 2011 24

What is Water (4) Europe. Aid Water service delivery & decentralisation National level District level Local level Example from Mali (Pactea) Feb. 2011 25

Next events Europe. Aid • Brussels end of June. Requests, expectations… • Capacity 4 dev Feb. 2011 26