TOPIC 3 PUBLIC FINANCE MANAGEMENT Donor Funds and
TOPIC 3: PUBLIC FINANCE MANAGEMENT Donor Funds and Conditional Grants for Devolved Functions with Regards to Water Function Presentation by Mr. Ismail Shaiye Chief Executive Officer 15 th December, 2017
• State Corporation / Financing Institution • First established under the Water Act 2002 as a financing mechanism, (Water Services Trust Fund) • Role enhanced under the Water Act, 2016 The Water Fund An overview • Mandate: Ø Provision of conditional and unconditional grants to the Counties Ø Financing development and management of water services in marginalized and underserved areas Ø Focus Areas: Water Services, Sanitation, Water Resources, Research Ø Other expanded roles: Disaster management, climate change adaptation & mitigation, incentive programmes: Can establish subsidiary funds • Governed by Board of Trustees
The Fund’s Investment Programmes Urban Investments GOK Rural Investments Commercial Financing DPs Water Resources and Climate Change Investments C S O U N T I E WSPs WRUAs UTILITIES / CBOs CFAs
/2 01 4 20 14 /2 01 5 20 15 /2 01 6 20 16 /2 01 7 20 13 /2 01 3 20 12 /2 01 2 20 11 /1 1 20 10 /1 0 20 09 9 20 08 /0 8 20 07 /0 10, 000 7 20 06 /0 6 20 05 /0 5 20 04 /0 Funding Growth 14, 000 12, 000 GOK (gross) 8, 000 6, 000 4, 000 2, 000 -
Key Development Partners European Union IFAD INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT 12/3/2020 5
INGREDIENTS FOR EFFECTIVE FINANCING TO WATER AND SANITATION – WORKING WITH COUNTIES • Good Governance • Transparency • Accountability • Proper systems and Processes
EFFECTIVE FINANCING – LESSONS LEARNT • Robust County Engagement – collaboration in programme implementation (WSTF example, MOUs with Counties) • Water County Executive (CEC) to work closely with Finance CEC Ø Wajir example: Ksh 1 billion allocated to water; • Incentives – Wajir Governor honoured as Water Ambassador at 2016 Kenya Water Week • Effective water policies, Master Plans; service delivery framework especially for Rural. • CIDPs, validated by community members; useful for progressive planning over time (considers population growth, prevents urban sprawl) • Strengthening County water institutions (WSPs) (result, increased connections, reduced Non-Revenue-Water) • Operations Maintenance – ensures sustainability of water & sanitation schemes (WSTF annual operations monitoring – 70% index) • Pro-poor targeting: establish units focusing on the poor and underserved for equitable service delivery (46% Kenyans underserved)
Programme CURRENT ONGOING PROGRAMMES FUNDED Funding (Ksh) Target Population Urban Water Services (GOK, Kf. W) 1. 2 Billion Open to all Counties Urban Sanitation (BMGF) 750 million Open to all Counties Result Based Financing (World Bank, Kf. W) - urban 1. 1 Billion Open to all Counties Rural JP 6 Programme (GOK, Finland, Sweden) 2 Billion Kwale, Nandi, Tharaka Nithi, Migori, Narok, Laikipia Rural Danida / EU Share 900 million Isiolo, Lamu, Tana River, Marsabit, Garissa, Wajir Upper Tana Natural Resources Programme (GOK, IFAD) 700 million Tharaka Nithi, Embu, Murang’a, Kirinyaga, Meru, Nyeri Rural Danida Green Growth & Employment Creation & Drought Emergency - 1. 475 million Isiolo, Lamu, Tana River, Marsabit, Garissa, Wajir, Turkana, Mandera Rural EU Climate Proofed Infrastructure 2. Billion Baringo, Kajiado, Kilifi, Samburu, Kitui, Taita Taveta, West Pokot, Mandera Saudi Fund for Development (boreholes) 500 million Wajir, Garissa, Mandera
WHY PARTNER WITH TRUST FUND? Harmonization of donor procedures WSTF does not implement but finances; therefore collaborates with others for implementation Pro-poor Targeting Systematic capacity building for sustainability 12/3/2020 Experience & wide Partner base Transparent & participatory criteria, selection, award & implementation process 9
Launch of Rural Programme in six (6) Counties and Signing of Co-Funding MOUs with Governors THANK YOU
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