Devolution Trust Fund Zambia
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1 Devolution Trust Fund Zambia Implementation of Pro-poor policy for WSS in Zambia UN Independent Expert s Consultation on Good Practices with State Actors: Jan 2011 Geneva Sam Gonga Manager DTF/ZAMBIA 1/26/11 Seite 1 Page 1
2 Content of Presentation Water Sector Set up Sector Policy & Implementation The DTF: Measuring up to the Good Practices Criteria Lessons Learnt 1/26/11 Seite 2 Page 2
3 Why DTF Ensure & assist utilities improve WSS to peri-urban areas Operates as a basket for targeted improvements for peri-urban areas Hence minimises exclusion of these areas from better WSS services 1/26/11 Seite 3 Page 3
4 Water Sector Integration Parliament MEWD MLGH/DHID DTF Committee NWASCO LAs Basket Funding Partners DTF Water Utilities Reporting Funding 1/26/11 Seite 4 Page 4
5 Fund Portfolio Eligible Applicants Eligible Projects General Fund To assist CUs in extending WWS services to urban poor All CUs (unless excluded) Objective WSS, capacity building Peri-urban or low cost area Legal situation clarified Volume within spec. thresholds Performance Enhancement Fund To support initiatives by a CU aiming at enhancing its financial viability CUs with proven efforts to improve WSS situation for urban poor within past 12 month Previous DTF projects well implemented Projects improving financial viability of CU; i.e. reducing operational costs and/or increasing revenues 1/26/11 Seite 5 Page 5
6 Basketfunding Partner Harmonization Joint Reviews MoU Reports: (1) Quarterly (2) Bi-annually (audited) (3) Annually Annual Meeting Basket Funding Partner: GRZ, KfW, DANIDA, EU, (GTZ) 1/26/11 Seite 6 Page 6
7 Project Selection Call for Proposals Adressed to all CUs (exceptions possible) Scope of eligible projects Thresholds for project value Application forms Submission of Project Proposal Detailed Assessment Initial Screening Eligibility Completeness Review of proposed measures & implementation concepts Review of BoQs and cost estimates Prioritisation e.g. Cost per Beneficiary Potential to reduce Health Risks Funding Decision Recommendation by DTF Management Funding decision by DTFC Financing Agreement 1/26/11 Seite 7 Page 7
8 Disbursement of Funds CPs, GRZ Disbursement Request: 1x or 2x per year Audit of entire funds from 2 periods ago as attachments Funds : requirements for 6 12 months DTF Imprest Procedure: Advance of X% from DTF to CU When 50% are spent, CU may request for replenishment Evidence of correct use attached to replenishment requests 1st Disb. 2nd Disb. 3rd Disb. 4th Disb. CU Audit of 1st Disbursement. Audit of 2nd Disbursement. 1/26/11 Seite 8 Page 8
9 Financing and Implementation Financing Agreement & Contract Mechanism Intermittent Monitoring Mutual Cooperation Partnership for Training and Capacity Building CU Works & Supplies Contract Contractor Verification of Data in Proposal Verification of Works/Supplies Technical Consultant & Project Team Contract Supervision of Works Social Consultant & Project Team Training and Capacity Building Assistance in Implementation Assistance in Training, Health & Hygiene Promotion, Setting up Facility Management System Partner, if needed 1/26/11 Seite 9 Page 9
10 Monitoring and Evaluation Monitoring: Involvement of DTF Social and Technical Consultant Reporting Requirements for CUs: monthly reports, completion report, quarterly reports (after completion for 2 years) Inspection visits (announced and spontanuous) Evaluation: Project Visits upon completion (DTF Completion Reports) Ex-Post Evaluation/Impact Assessment: 6 months and 24 months after project completion 1/26/11 Seite 10 Page 10
11 Training Biogas Plant 1/26/11 Seite 11 Page 11
12 Water supply network, sewerage system 1/26/11 Seite 12 Page 12
13 Sector Policy & Implementation Policy reforms & the need for universal access to WSS Institutional changes needed to bring about better access to all Commercialization of service provision from 2000 Regulator set up in 2000 DTF established in /26/11 Seite 13 Page 13
14 Enabling Environment The constitution of Zambia stipulates a state obligation to provide clean and safe water Constitution of Zambia, 1996, Part IX, Article 112(d) Implementation of Sector Reforms Service license defines service area including low-income areas Formal Service Provider (SP) responsible for other players SP has to offer adequate outlets kiosks Extensions into low-income areas part of business plan of SP Regulatory Policy 1/26/11 Seite 14 Page 14
15 Facilitating Principles in DTF interventions 1. Economy of scale/all consumers connected to the utility system benefits for all consumer groups Costs 2. Access to provider s services for all consumer groups within the service area 1/26/11 Seite 15 Page 15
16 Facilitating Principles; Con td 3. Right technology of infrastructure 4. Participation of consumer groups and local authorities 5. Promotion of solidality cross subsidies 1/26/11 Seite 16 Page 16
17 Good Practices Criteria: Their Realisation in DTF No agreed standard definition of coverage Statistics bureau and water sector figures not harmonised Hence started with definition of coverage; Parameters include: Distance, water quality, price, Functionality Walking distance, waiting time, pressure Sustainability, design of installations 1/26/11 Seite 17 Page 17
18 Good Practices Criteria: Cont d Availability of supply ensured by: systems financed by DTF connected to the utility and thus ensures availability of water as in other areas A basic level of service (40ltr/c/day) is guaranteed even for the lowest income group Service hours monitored by Regulator 1/26/11 Seite 18 Page 18
19 Good Practices Criteria: Cont d Support infrastructure also financed to ensure reliability and adequate quantities of water is available to a particular community Each water kiosk is available to a limited number of households to avoid congestion and long waiting times 1/26/11 Seite 19 Page 19
20 Good Practices Criteria: Cont d Accessibility Facilities installed within 200m/300m radius Household level sanitation facilities for safety of women and children 1/26/11 Seite 20 Page 20
21 Affordability Limited flexibility in poor household budgets to absorb a large increases in water charges 100% subsidy for infrastructure No capital recovery through tariff Kiosks provide for a regulated tariff Life-line subsidised tariff applied at kiosks 1/26/11 Seite 21 Page 21
22 Quality/Safety Sanitation still a challenge Sustainable approaches for peri-urban areas being developed Water Utility responsible for quality of water at kiosks Quality ensured as kiosks mostly connected to utility network 1/26/11 Seite 22 Page 22
23 Acceptability Process is consultative with community Technology choice is demand driven 1/26/11 Seite 23 Page 23
24 Non-Discrimination DTF is pro-poor focused At least 80% of the funds goes towards peri-urban areas/ the voiceless Peri-urban areas not abandoned to 2 nd class service providers Encourages women participation in the projects 1/26/11 Seite 24 Page 24
25 Participation Community involvement integral part of DTF guidelines on implementation of projects Day to day operations of facilities done by community members/vendors 1/26/11 Seite 25 Page 25
26 Accountability Two (2) audits on DTF per year Projects evaluations conducted annually by independent consultants Different stakeholders including community interviewed in evaluations Annual basket fund partners meeting 1/26/11 Seite 26 Page 26
27 Impact Water Supply projects financed since 2004 No. of Water Kiosks Total Costs ( ) Population served 350 6,000, ,000 Financing: Govt, KfW, DANIDA, EU 1/26/11 Seite 27 Page 27
28 Sustainability Basket fund threatened by low contributions from Govt mostly externally funded No free water! Everyone pays albeit at subsidised cost for kiosks O & M costs for Kiosks low mostly covered through the wider utility revenue Utilities to gradually takeover investment in peri-urban areas 1/26/11 Seite 28 Page 28
29 Lessons learnt Rights based approach is NOT yet explicitly mentioned in national planning documents (SNDP, NUWSSP) while the right to water is embedded in national constitution Steady increase of funding to the sector by Govt, but still not enough Implementation Level: Steadily improving access to WSS services while sanitation is still neglected, concepts for pro-poor water supply available, further up-scaling needed, funds? Water quality is assured by formal water provision Right to WSS who pays the cost? 1/26/11 Seite 29 Page 29
30 Thank you! 1/26/11 Seite 30 Page 30
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