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APPLICATION OF THE FINANCING
ASSESSMENT TOOL
FINANCING WATER MANAGEMENT
Effie Fachouridou
MSc Environmental Sciences
WAGENINGEN UR
PRESENTATION CONTENTS
1. Research Design
2. Research results
3. Conclusions
4. Comparison of additional cases
5. Prospects of FAT application
RESEARCH DESIGN
UK
Serbia
Colombia
-Different political, administrative
and economic contexts & water
management issues
-Primary & secondary data
-Interviews with experts &
practitioners
SERBIA
FLOODING INCIDENTS, MAY 2014
THE INCIDENTS
Total damages & losses: €1.5 billion
Impact on Real economic growth: -0.4%
(€ 268 million)1,6 million affected; 32,000 displaced 51 causalities
Annual spending in
water sector:
€ 300-350 million
Local
Regional
Ministerial
Governmental
Government
Budget
Ministry for
Local
Governance
Municipality Municipality
Ministry of
Agriculture &
Environ.
Protection
Republic Water
Directorate
Public Water
Management
Company
Srbijavode
Public Water
Management
Company Vode
Vojvodina
Public Water
Management
Company
Belgrade
SERBIAN INSTITUTIONAL FRAMEWORK
1st order water
bodies
2nd order water
bodies
FINANCING SYSTEM
0 20 40 60 80 100
Coherence
Equity
Efficiency
Effectiveness
Cost recovery
Stability
Sufficiency
Summary of scores for Serbia (%)
Financial & Personnel,
High dependence on
government
Targets not achieved &
lack of long-term targets
EU legislation (WFD &
FD) acts as a driver!
COLOMBIA
FLOODING INCIDENTS, 2010-2011
Economic damage: $5.1 billion (2% of GDP)
THE INCIDENTS
Impact: 301 dead, 2.2 million displaced
FRM spending in 2007: $282.465 million
COLOMBIAN INSTITUTIONAL FRAMEWORK
Local
Regional
National
National Republic
Presidency
IDEAM (National
Institute for
Hydrology and
Environmental
Studies
Ministry of Env.,
Housing and
Territorial
Development
(MAVDT)
Autonomic
Regional Authority
(CAR)
Municipality Municipality
Integrated water
management
Implementation
of water
management
plans
Economic
instruments
Economic
instruments
ASSESSMENT RESULTS
0 20 40 60 80 100
Coherence
Equity
Efficiency
Effectiveness
Cost recovery
Stability
Sufficiency
Colombia, Summary of scores(%)
Insufficient & discontinuous,
high competition
UK
FLOODING INCIDENTS, JUNE-JULY 2007
FLOODING INCIDENTS 2007
Impact: 13 fatalities; thousands evacuated Total economic costs: ₤3.2 billion
Annual spending: ₤521 million (2011)
£1 of capital
investment in FRM 
£8 long-term benefit
in reduced damage.
Local
National
Governmental
Department for
Environment, Food &
Rural Affairs (Defra)
Environment
Agency
Lead Local Flood
Authorities
District and
Borough Councils
Internal Drainage
Boards
UK INSTITUTIONAL FRAMEWORK
Devolved
administration
of Scotland
Devolved
administration of
Northern Ireland
Flooding from main rivers,
estuaries, sea & reservoirs
Surface water, groundwater &
ordinary watercourses
Supervising land drainage
& flood defence
Beneficiaries
Predominance of
Government funding 
Communities expect
defence project will be
funded eventually 
Unrealistic & undermines
incentives for local action
ASSESSMENT RESULTS
0 20 40 60 80 100
Coherence
Equity
Efficiency
Effectiveness
Cost recovery
Stability
Sufficiency
UK, Summary of scores (%)
Competition & expected
increase of needs
CONCLUSIONS
FAT IN FLOOD RISK MANAGEMENT
The adoption of common
frameworks (e.g. WFD & FD)
can act as driver for
improvement.
Respondents found
relation between
financing system &
incidents, with Focus on
sufficiency & stability
Respondents consider to
apply cost recovery &
beneficiary pays, but current
application is limited &
improving financing is not a
priority
FRM Beneficiaries &
services not explicitly
defined, thus Costs
difficult to be defined &
recovered.
Finance new projects & not
maintenance is more salient &
accessible, leading to
Deterioration of Investments/
Maintenance balance
Respondents’ recommendations for the
financing system include:
- Quick implementation of current legal
frameworks & plans
- More targeted/efficient spending
- Increase Public-Private partnerships to cover
future needs
ADDITIONAL CASES
COMPARISON
Sufficiency Stability
Cost
Recovery
Effectiveness Efficiency Equity Coherence
Amsterdam
UK
Romania
Serbia
Bangladesh
Ethiopia
Bur. Faso
Nicaragua
Colombia
PROSPECTS OF FAT APPLICATION
Start discussion and
Increase awareness
Government & society to
acquire problem’s
ownership
First indicative picture of
financing system
Continue with in-depth
assessments
Create a database of
paradigms
Communicate models and
examples
Overcome local
opposition, demand for
protection or legislative
constraints
THANK YOU!
ANY COMMENTS OR QUESTIONS?

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E. Fachouridou - Internship presentation WGC

  • 1. APPLICATION OF THE FINANCING ASSESSMENT TOOL FINANCING WATER MANAGEMENT Effie Fachouridou MSc Environmental Sciences WAGENINGEN UR
  • 2. PRESENTATION CONTENTS 1. Research Design 2. Research results 3. Conclusions 4. Comparison of additional cases 5. Prospects of FAT application
  • 3. RESEARCH DESIGN UK Serbia Colombia -Different political, administrative and economic contexts & water management issues -Primary & secondary data -Interviews with experts & practitioners
  • 5. THE INCIDENTS Total damages & losses: €1.5 billion Impact on Real economic growth: -0.4% (€ 268 million)1,6 million affected; 32,000 displaced 51 causalities Annual spending in water sector: € 300-350 million
  • 6. Local Regional Ministerial Governmental Government Budget Ministry for Local Governance Municipality Municipality Ministry of Agriculture & Environ. Protection Republic Water Directorate Public Water Management Company Srbijavode Public Water Management Company Vode Vojvodina Public Water Management Company Belgrade SERBIAN INSTITUTIONAL FRAMEWORK 1st order water bodies 2nd order water bodies
  • 7. FINANCING SYSTEM 0 20 40 60 80 100 Coherence Equity Efficiency Effectiveness Cost recovery Stability Sufficiency Summary of scores for Serbia (%) Financial & Personnel, High dependence on government Targets not achieved & lack of long-term targets EU legislation (WFD & FD) acts as a driver!
  • 9. Economic damage: $5.1 billion (2% of GDP) THE INCIDENTS Impact: 301 dead, 2.2 million displaced FRM spending in 2007: $282.465 million
  • 10. COLOMBIAN INSTITUTIONAL FRAMEWORK Local Regional National National Republic Presidency IDEAM (National Institute for Hydrology and Environmental Studies Ministry of Env., Housing and Territorial Development (MAVDT) Autonomic Regional Authority (CAR) Municipality Municipality Integrated water management Implementation of water management plans Economic instruments Economic instruments
  • 11. ASSESSMENT RESULTS 0 20 40 60 80 100 Coherence Equity Efficiency Effectiveness Cost recovery Stability Sufficiency Colombia, Summary of scores(%) Insufficient & discontinuous, high competition
  • 13. FLOODING INCIDENTS 2007 Impact: 13 fatalities; thousands evacuated Total economic costs: ₤3.2 billion Annual spending: ₤521 million (2011) £1 of capital investment in FRM  £8 long-term benefit in reduced damage.
  • 14. Local National Governmental Department for Environment, Food & Rural Affairs (Defra) Environment Agency Lead Local Flood Authorities District and Borough Councils Internal Drainage Boards UK INSTITUTIONAL FRAMEWORK Devolved administration of Scotland Devolved administration of Northern Ireland Flooding from main rivers, estuaries, sea & reservoirs Surface water, groundwater & ordinary watercourses Supervising land drainage & flood defence Beneficiaries Predominance of Government funding  Communities expect defence project will be funded eventually  Unrealistic & undermines incentives for local action
  • 15. ASSESSMENT RESULTS 0 20 40 60 80 100 Coherence Equity Efficiency Effectiveness Cost recovery Stability Sufficiency UK, Summary of scores (%) Competition & expected increase of needs
  • 17. FAT IN FLOOD RISK MANAGEMENT The adoption of common frameworks (e.g. WFD & FD) can act as driver for improvement. Respondents found relation between financing system & incidents, with Focus on sufficiency & stability Respondents consider to apply cost recovery & beneficiary pays, but current application is limited & improving financing is not a priority FRM Beneficiaries & services not explicitly defined, thus Costs difficult to be defined & recovered. Finance new projects & not maintenance is more salient & accessible, leading to Deterioration of Investments/ Maintenance balance Respondents’ recommendations for the financing system include: - Quick implementation of current legal frameworks & plans - More targeted/efficient spending - Increase Public-Private partnerships to cover future needs
  • 19. Sufficiency Stability Cost Recovery Effectiveness Efficiency Equity Coherence Amsterdam UK Romania Serbia Bangladesh Ethiopia Bur. Faso Nicaragua Colombia
  • 20. PROSPECTS OF FAT APPLICATION Start discussion and Increase awareness Government & society to acquire problem’s ownership First indicative picture of financing system Continue with in-depth assessments Create a database of paradigms Communicate models and examples Overcome local opposition, demand for protection or legislative constraints
  • 21. THANK YOU! ANY COMMENTS OR QUESTIONS?