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Local funding for water and sanitation services in Madagascar Lovy Rasolofomanana   Kampala, 13rd and 14th  2010 Internati...
Local funding key lessons  <ul><li>Commune as manager and owner of water and sanitation services </li></ul><ul><li>Access ...
Madagascar  <ul><li>587,041 km2 </li></ul><ul><li>19.7 million inhabitants, 71% live below the poverty line.  </li></ul><u...
Three financing types
Local  service delivery <ul><li>For sustainability purpose: knowledge and control of all service delivery interventions </...
Financing mechanisms: leasing <ul><li>the municipality retains the ownership and financing of infrastructure investments  ...
Financing mechanisms :  LDF <ul><li>Local Development Fund : </li></ul><ul><li>providing subsidies to fund locally determi...
Financing mechanisms :  sub-contracting <ul><li>User contribution in Ankadikely Ilafy: </li></ul><ul><li>Water utility sub...
Financing mechanisms :  local taxes <ul><li>Devolved vs deconcentrated taxes;   </li></ul><ul><li>Some devolved taxes: wat...
Conclusions  <ul><li>Three financing options: intergovernmental transfers, sector funds, off-budget funds for capital expe...
Web site links  <ul><li>http://www.wateraid.org/documents/plugin_documents/local_financing_madagascar.pdf </li></ul><ul><l...
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Session 3B Finance - Lovy Rasolofomanana finance local presentation

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Transcript of "Session 3B Finance - Lovy Rasolofomanana finance local presentation"

  1. 1. Local funding for water and sanitation services in Madagascar Lovy Rasolofomanana Kampala, 13rd and 14th 2010 International Symposium on Sustainable Rural Water Services
  2. 2. Local funding key lessons <ul><li>Commune as manager and owner of water and sanitation services </li></ul><ul><li>Access to funds at local level </li></ul><ul><li>New financing mechanisms </li></ul>
  3. 3. Madagascar <ul><li>587,041 km2 </li></ul><ul><li>19.7 million inhabitants, 71% live below the poverty line. </li></ul><ul><li>In 2005, ranked 143 out of 173 countries on the UNDP Human Development Index. </li></ul><ul><li>JMP in 2008 : </li></ul><ul><li>Access to safe water 41% & adequate sanitation 15% </li></ul><ul><li>22 regions and 1559 communes. </li></ul>
  4. 4. Three financing types
  5. 5. Local service delivery <ul><li>For sustainability purpose: knowledge and control of all service delivery interventions </li></ul><ul><li>Consultation and planning tools </li></ul><ul><li>Link between central and local plans </li></ul>
  6. 6. Financing mechanisms: leasing <ul><li>the municipality retains the ownership and financing of infrastructure investments </li></ul><ul><li>an operator ensures the operation of the public service, through fees </li></ul><ul><li>the operator can also collects a “surcharge” re-invested locally </li></ul>
  7. 7. Financing mechanisms : LDF <ul><li>Local Development Fund : </li></ul><ul><li>providing subsidies to fund locally determined project priorities from a common basket fund financed by donors </li></ul><ul><li>ensure alignment, ownership and harmonization of actions </li></ul><ul><li>build the capacities of communes </li></ul><ul><li>finance communes activities through budget supports </li></ul>
  8. 8. Financing mechanisms : sub-contracting <ul><li>User contribution in Ankadikely Ilafy: </li></ul><ul><li>Water utility subcontracts the operation and maintenance of public tap to a user association or private sector operator. </li></ul><ul><li>Price -per-bucket: 1 cents to 2.5 cents $ among different taps. </li></ul><ul><li>The revenue is divided as shown. </li></ul>
  9. 9. Financing mechanisms : local taxes <ul><li>Devolved vs deconcentrated taxes; </li></ul><ul><li>Some devolved taxes: water and electricity tax- 100% – land & building property tax100% – income tax (60%) </li></ul><ul><li>The revenue could finance WSS or social services </li></ul>
  10. 10. Conclusions <ul><li>Three financing options: intergovernmental transfers, sector funds, off-budget funds for capital expenditure at communal level </li></ul><ul><li>Communes need support be able to coordinate activities, interventions and all financings in its constituency </li></ul><ul><li>New financing models </li></ul>
  11. 11. Web site links <ul><li>http://www.wateraid.org/documents/plugin_documents/local_financing_madagascar.pdf </li></ul><ul><li>http://www.wateraid.org/documents/plugin_documents/penser_local_agir_local.pdf </li></ul><ul><li>http://www.wateraid.org/documents/plugin_documents/think_local_act_local_report_1.pdf </li></ul>
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