WACDEP Global Coordination Meeting
Port of Spain, Trinidad and Tobago
Andrew Takawira, Senior Programme Officer, WACDEP Af...
BACKGROUND
North West Sahara Aquifer (SASS)
•Tunisia
Volta Basin (Burkina Faso and Ghana)
Lake Chad Basin (Cameroon)
Limpopo Basin (M...
Piloted in 8 countries so
far:
•Ghana
•Burkina Faso
•Cameroon
•Tunisia
•Burundi
•Rwanda
•Mozambique
•Zimbabwe
WP 2: Nation...
WACDEP builds on
the lessons learnt in
IWRM Planning
carried out from
2004 - 2009
Closing the planning loops
Water
Reforms –
2000
(Africa
Water
Vision)
and FFA??
IWRM Plans –
2005??
Water in
development– ...
WATER CLIMATE DEVELOPMENT PROGRAMME -AFRICA
Water security and climate resilience
integrated in Africa's growth and
develo...
Taking identified priorities forward
• Investment planning
– planning aimed at
ensuring that projects
are prioritised and
...
INVESTMENT PLANNING
What we asked?
• What is an investment plan and its purpose?
• What are the types of investment for water
security and cli...
Investment plans support institutions to:
•Motivate priorities for investment
•Define institutional arrangements for imple...
Investment Planning Process in WACD
GWP teams in countries have been:
•Conducting assessments to better understand how investment
planning is being conducted
...
Water user associationWater user association
Who drives investment planning?
Municipality / WSPMunicipality / WSP
Local
Pr...
Depending on the identified entry points:
•Facilitate engagement with stakeholders to define the
investment objectives and...
Defining investment priorities (projects)
Institutional and social
development
Catchment water
planning, protection,
infor...
Cost and benefit analysis of identified options:
•WACDEP invested in a capacity development programme aimed
at ensuring th...
Targeting and criteria for
Financing the Investment Plans
Climate
Finance
Investment Plan
Allocative
efficiency Financial ...
WHERE ARE WE NOW
AND
WHAT ARE WE LEARNING?
Countries have identified entry points and finalising development of
roadmaps
•At the national level (where we envisaged t...
Greatest opportunity has been at the local level
•At the local level
– Clear and well defined demand from catchment manage...
1. Investment Plan in support of water-related
sector strategy
– Burundi and Rwanda supporting in the development
of an in...
3. Mainstreaming water security and resilience into other
investment plans
– Zimbabwe supporting Resource Mobilisation Str...
Entry points – WACDEP Investment Planning
Local
Provincial
(catchment/
system)
National
Regional
(basin)
Municipality / WS...
We have a critical role to play in supporting
investment planning
– Through institutional development at all levels –
for ...
PROJECT PREPARATION
National budget allocation per sector in Africa
Regional Development Banks (2012)
Regional Development Banks Support to Sectors
Among other issues specific to water financing inadequate project preparation has
been identified as an area of concern
GW...
Key insights in project preparation
Project Preparation Cycle
Enabling Environment
Project Definition
Project Feasibility
Project Structuring
Marketing
Transa...
Project Preparation Funding
Considerations for WACDEP support
Focus of current support from
the ICA – GWP supporting institutions at different levels
Enabling Environment
Project Defin...
Added value of GWP involvement in
the Early Stage
• Contributing to the early stages which are under funded
leading to wea...
Moving forward with Africa Water Facility
Enabling Environment
Project Definition
Project Feasibility
Project Structuring
...
GWP’s role and added value
in the middle and late stages
• Opportunity to work with the Africa Water Facility in
taking fo...
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WACDEP Global Coordination Investment

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WACDEP Global Coordination Investment

  1. 1. WACDEP Global Coordination Meeting Port of Spain, Trinidad and Tobago Andrew Takawira, Senior Programme Officer, WACDEP Africa Investment planning and project preparation – lessons and experiences from Africa
  2. 2. BACKGROUND
  3. 3. North West Sahara Aquifer (SASS) •Tunisia Volta Basin (Burkina Faso and Ghana) Lake Chad Basin (Cameroon) Limpopo Basin (Mozambique and Zimbabwe) Kagera Basin (Burundi and Rwanda) WACDEP IN AFRICA
  4. 4. Piloted in 8 countries so far: •Ghana •Burkina Faso •Cameroon •Tunisia •Burundi •Rwanda •Mozambique •Zimbabwe WP 2: National development and sector plans
  5. 5. WACDEP builds on the lessons learnt in IWRM Planning carried out from 2004 - 2009
  6. 6. Closing the planning loops Water Reforms – 2000 (Africa Water Vision) and FFA?? IWRM Plans – 2005?? Water in development– how do we close the planning loop? - Addressing water financing needs…
  7. 7. WATER CLIMATE DEVELOPMENT PROGRAMME -AFRICA Water security and climate resilience integrated in Africa's growth and development Investments in regional and National Development Regionaland Transboundary Cooperaton National Developmentand SectorPlans No/lowRegrets Investments ProjectPreparation andFinancing Innovative Green Solutions Demonstration Projects Knowledge and Capacity Development Capacity Developement Knowledgeand Awareness Partnerships and Sustainability Governanceand Fundrising OUTCOMEOUTPUTSACTIVITIES Enabling activitiesIntegration, investments in Climate resilient growth and development
  8. 8. Taking identified priorities forward • Investment planning – planning aimed at ensuring that projects are prioritised and funding (from different sources) is identified • Project Preparation – developing prioritised investment options into fundable projects
  9. 9. INVESTMENT PLANNING
  10. 10. What we asked? • What is an investment plan and its purpose? • What are the types of investment for water security and climate resilience? • How do we fund (pay for) investments? • How do we consider resilience & robustness? • What institutional arrangements are necessary? • What process should we follow? • Who drives it and who must be involved? • What experiences do we have in Africa? • How do we ensure financing (investment)?
  11. 11. Investment plans support institutions to: •Motivate priorities for investment •Define institutional arrangements for implementation •Estimate resource requirements •Increase the understanding of costs and benefits •Propose sources of funding Purpose of an investment plan
  12. 12. Investment Planning Process in WACD
  13. 13. GWP teams in countries have been: •Conducting assessments to better understand how investment planning is being conducted – New experiences – requiring to engage with Ministries of Finance and sector planning department – Context in each country differs – no one size fits all •Output – Roadmap (technical brief) on investment planning identifying entry points and recommending an option to support through WACDEP Understanding enabling conditions (strategies; plans; institutions)
  14. 14. Water user associationWater user association Who drives investment planning? Municipality / WSPMunicipality / WSP Local Provincial (catchment/ system) National Regional (basin) Provincial Government (water & agric)Provincial Government (water & agric) Basin organisationsBasin organisations Regional Economic CommunitiesRegional Economic Communities National Government (DWA, others)National Government (DWA, others) International Basin Authority/Commission International Basin Authority/Commission Bulk UtilityBulk Utility AU/NEPADAU/NEPADPan- African
  15. 15. Depending on the identified entry points: •Facilitate engagement with stakeholders to define the investment objectives and expected outcomes •In some countries – guidance is provided from Ministry of Finance/Planning •Align to capacity development programme – to ensure planners have clear understanding (water security and climate resilient development, no/low regret etc.) Investment objectives (outcomes)
  16. 16. Defining investment priorities (projects) Institutional and social development Catchment water planning, protection, information, utilisation & monitoring Built infrastructure planning, construction, operation & maintenance Green infrastructure conservation & rehabilitation
  17. 17. Cost and benefit analysis of identified options: •WACDEP invested in a capacity development programme aimed at ensuring that planners define better investment impacts •Economics of Adaptation training with UNDP GEF with planners from targeted institutions •Key value addition to showing benefits (social, environmental and economic) of investing in water security and climate resilience Investment impacts (costs and benefits)
  18. 18. Targeting and criteria for Financing the Investment Plans Climate Finance Investment Plan Allocative efficiency Financial viability Development outcomes Social, economic &ecological cost & benefits Financial viability costs & revenue Donors (transfers) Funders (capital) Treasury (taxes) Adaptation outcomes Reduce vulnerabilities; increase adaptive capacity
  19. 19. WHERE ARE WE NOW AND WHAT ARE WE LEARNING?
  20. 20. Countries have identified entry points and finalising development of roadmaps •At the national level (where we envisaged to work) – Big national projects; big donors and players – Need to define GWPs added value in national investment planning (institutional capacity development aimed at strengthening national planning departments ; stakeholder engagement – clear winners) – Opportunities mainly in supporting resource mobilisation for plans and strategies – costing exercises – Cameroon, Zimbabwe, Rwanda and Burundi supporting national investment planning processes Defining entry points – scale
  21. 21. Greatest opportunity has been at the local level •At the local level – Clear and well defined demand from catchment management institutions and level planning authorities – Linking investments identified by catchment agencies to local and national development investment processes – Limited capacity in local institutions for investment planning (especially catchment management institutions) are new and weak – Demand for clear definition of priorities and better understanding of investment impacts – Tunisia, Ghana, Burkina Faso and Mozambique supporting national investment planning processes Defining entry points – scale
  22. 22. 1. Investment Plan in support of water-related sector strategy – Burundi and Rwanda supporting in the development of an investment plan to implement IWRM strategies 1. Stand alone climate investments ~ no / low regrets – Mozambique identifying climate investments for uptake in the Country Climate Investment Programme from the catchment institutions Emerging Focus on Investment Planning
  23. 23. 3. Mainstreaming water security and resilience into other investment plans – Zimbabwe supporting Resource Mobilisation Strategy for the Climate Change Response strategy (focusing on WS&CR issues) – Cameroon supporting the National Biodiversity Strategic Action Plan – Ghana mainstreaming into Local Development Investment Plans – Tunisia mainstreaming investments from the watershed into the Water and Land Preservation Strategy – Burkina Faso support to developing an investment plan for local IWRM Plan Emerging Focus on Investment Planning
  24. 24. Entry points – WACDEP Investment Planning Local Provincial (catchment/ system) National Regional (basin) Municipality / WSPMunicipality / WSP Municipal water services development plan ???? Bulk UtilityBulk Utility Provincial Government (water & agric)Provincial Government (water & agric)Ghana –White Volta Pan- African AU/NEPADAU/NEPAD PIDA International Basin Authority/Commission International Basin Authority/Commission Kagera Investment Plan LCB Investment Plan Regional Economic Communities.Regional Economic Communities. SADC Regional Infrastructure Plan ECOWAS Groundwater Investment Water usersWater users Tunisia – W&L Strategy Basin organisationsBasin organisations BF - Nkanbe Moz- Climate investments National Government (DWA, others)National Government (DWA, others) NCCRS - Zimbabwe Green Growth and CR Strategy - Rw Cam - National Biodiversity Plan Burundi – WRM invest. plan
  25. 25. We have a critical role to play in supporting investment planning – Through institutional development at all levels – for better investment planning – Convening diverse stakeholders and promote integrated investment planning – Supporting institutions to better define the investment impact of interventions/projects identified (as this attracts funding) What does this all mean for GWP?
  26. 26. PROJECT PREPARATION
  27. 27. National budget allocation per sector in Africa
  28. 28. Regional Development Banks (2012) Regional Development Banks Support to Sectors
  29. 29. Among other issues specific to water financing inadequate project preparation has been identified as an area of concern GWP is working with the ICA (Infrastructure Consortium for Africa) to bridge the gap between project lists (demand) and getting projects funded (supply) Project Preparation in WACDEP
  30. 30. Key insights in project preparation
  31. 31. Project Preparation Cycle Enabling Environment Project Definition Project Feasibility Project Structuring Marketing Transacting Identifying legal , regulatory, institutional and other impediments Sector Planning, Project Identification & Screening Detailed engineering, environmental, social and economic appraisals Detailed financial and legal structuring Promotion of the Project and Assessment of interests Procuring & Negotiating Project Documentation and finance
  32. 32. Project Preparation Funding
  33. 33. Considerations for WACDEP support
  34. 34. Focus of current support from the ICA – GWP supporting institutions at different levels Enabling Environment Project Definition • Enabling Environment – being done under Work Package 3 • Also working from existing investment plans • Support provided by ICA for a Finance Expert to assist in better defining projects and project impacts Deliverables: •13 Pre-feasibility Studies (with investment impacts) to take forward to project preparation facilities •Report on constraints and bottlenecks to project preparation •Report on Funding sources •Pan-African Conference on Project Preparation
  35. 35. Added value of GWP involvement in the Early Stage • Contributing to the early stages which are under funded leading to weak prioritisation of projects • Increasing the understanding of challenges, bottlenecks and constraints for different types of climate-water projects in varying contexts and in the project cycle • Project preparation of distinct projects in diverse contexts to support water security and climate resilience at varying scales • Identification of potential funding sources and access to ICA partners • Capacity and insight to develop projects with varying sources of finance supported by different funding sources
  36. 36. Moving forward with Africa Water Facility Enabling Environment Project Definition Project Feasibility Project Structuring Marketing Transacting Detailed engineering, environmental, social and economic appraisals Detailed financial and legal structuring Promotion of the Project and Assessment of interests Procuring & Negotiating Project Documentation and finance
  37. 37. GWP’s role and added value in the middle and late stages • Opportunity to work with the Africa Water Facility in taking forward the Pre-Feasibility Studies and existing projects in Investment Plans (Limpopo and Kagera)  GWP’s role of institutional development – to ensure institutions have the capacity to interact with experts  Knowledge Sharing  Engaging diverse stakeholders  ??? • How can our partnerships play a role in the project preparation cycle?

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