MINISTRY OF AGRICULTURE WATER AND FORESTRY DIRECTORATE OF

MINISTRY OF AGRICULTURE, WATER AND FORESTRY DIRECTORATE OF WATER SUPPLY AND SANITATION COORDINATION • Sector Budget Support : EC funding to the Rural Water Supply & Sanitation Sector in NAMIBIA Presented by Mr. Victor Slinger Republic of Namibia Deputy Director: Rural Water Development and Planning Windhoek, Namibia Regional Water and Sanitation Workshop 18 th to 22 nd October 2010, Nairobi, KENYA

PRESENTATION OUTLINE n n n n n History of EC support to the DWSSC National Sector Framework Support by Development Partners Sector Policy and Strategies The role of Government Sector Medium Term Expenditure Framework Donor and Sector Coordination Major Challenges facing the Water Sector Lessons learnt from sector budget support 9 th EDF

HISTORY OF EC SUPPORT TO THE DIRECTORATE WSSC n Rural Water Supply: • No support for water supply under EDF 7 and 8. • Budget support of Euro 11 million under EDF 9. • Targeted on development of rural water supply schemes. • Non-targeted budget support. • Budget support of Euro 9 million under EDF 10.

NATIONAL SECTOR FRAMEWORK Macro-economic framework n Real GDP growth ± 4% n Fiscal surplus ± 2. 6% n Inflation ± 5. 5% n Exchange rate 1 Euro = 11. 20 N$ n Financial sector strong, well regulated n Economic problems Unemployment Poverty HIV/AIDS

NATIONAL SECTOR FRAMEWORK PUBLIC FINANCE MANAGEMENT n Strong in Namibia n Integrated financial management system n Budget formulation Operational – Mo. F Development – NPC n Objectives & performance indicators MTEF. MTP, PEMP n External control by Auditor General n PFM concern: huge GRN wage bill adherence to Tender Board Regulations expenditure to remain within 2% deviation proper recordkeeping

NATIONAL SECTOR FRAMEWORK Water Sector MTEF n Multi-year planning framework Vision 2030 5 -year NDPs 3 -year MTEF n Water Sector outputs WS infrastructure n Water Sector outcomes Coverage Cost recovery CBM n Capital and Recurrent expenditure Separate n Budget Steady increase n Expenditure Within 2% deviation

SUPPORT BY DEVELOPMENT PARTNERS n The five(5) DPs in the Wat. San Subsector • European Commission • Government of Spain through ACEID • The Namibian Red Cross Society • Government of Iceland through ICEIDA • Luxembourg through LUX-DEVELOPMENT

SECTOR POLICY AND STRATEGIES • New Water and Sanitation policy, WSASP - INTERLINKED PROBLEMS OF WATER & SANITATION ADDRESSED. • Subsidy scheme - Viability investigated Aims & Objectives = Subsidizing & Affordability, NCW. • MDG and Vision 2030 • CCI: Good governance, gender equality, environmental mainstreaming and Hiv/Aids

THE ROLE OF GOVERNMENT • Government is responsible to manage the water and sanitation sector • Government’s role as Facilitator rather than a Provider • Integration of the sanitation sector with the water sector • Infrastructure Development

SECTOR MEDIUM TERM EXPENDITURE FRAMEWORK • Transparent planning and budget formulation • Clear targets and indicators • Maintain fiscal discipline (within 2% over/under expenditure) • A fair distribution model is being considered – advertisement placed for Programmers

WATER & SANITATION SECTOR COORDINATION FORUM (WATSAN SCF) • Transformation of the Donor Coordination Forum into the Wat. San Sector Coordination Forum. • Functions are to: - make recommendations to GRN/Ministry - collect and exchange ideas - promote coordination & sector development - discuss sector issues • Membership is open to all

MAJOR CHALLENGES FACING WATER AND SANITATION SECTOR • Inadequate qualified and experienced human resources (Regions), engineering staff & artisans • Build up sufficient capacity for sanitation • Cost recovery implementation • Maintenance funds for newly created infrastructure • With sanitation and water supply merged, coordination has become crucial

LESSONS LEARNT FROM BUDGET SUPPORT n n Earmarking of budget support to specific rural water supply schemes was not adding value Budget support had not led to reduction of budget allocation by GRN: it increased allocation With the sector approach the Ministry can better address sector priorities Sector approach is compared to project approach: • More flexible • Producing less overhead costs (allowing for bigger contracts in outsourcing of works) • Providing more opportunity for accelerating service provision

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• Construction of Pipe line networks • EDF 10 – € 18 million for the Water Supply and Sanitation sub-sectors • Support Sanitation Sector Capacity Building Plan & Red Cross for sanitation implementation EUROPEAN COMMISSION

• Poverty reduction & Living conditions in rural populations • 2009/10 - Amount of funds contributed N$25 mil. • Present funding is used to assist in the CBM projects • Another 1 mil. € was approved on Friday July 9, 2010. AGENCY FOR INTERNATIONAL COOPERATION

• Water supply & sanitation facilities to rural communities • N$19. 5 mil. • Presently involved in Kunene, Omusati and Ohangwena • Started in 2008 - 2010 RED CROSS

• Started with Kindergarten project in Kunene • Presently involved in water supply to communities in Kunene • Started 2007 – 2010 • Ending in Dec. 2010 Total of 33 New WPs.

• 3 Year Agreement with GRN May 08 – Dec. 10 ext. to Sept. 2011 • involved in Kavango & Caprivi regions – N$29. 75 mil. • Improve access to safe drinking water & decrease incidence of waterborne diseases. • Provide operational and strategic support to the two Regions • Assist with Decentralization – office construction

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