”What we have learned about improving the effectiveness of aid to improve sustainability and what lessons can be applied to the WASH sector” by Mr. Serge Tomasi, Deputy Director

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”What we have learned about improving the effectiveness of aid to improve sustainability - and what lessons can be applied to the WASH sector?” by Mr. Serge Tomasi, Deputy Director, OECD Development Cooperation Directorate

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What we have learned about improving the
effectiveness of aid to improve sustainability --
and what lessons can be applied to the WASH
sector?
Serge Tomasi
Deputy Director, OECD Development Cooperation Directorate
www.oecd.org/dac/stats/water

Chart 1. Trends in aid to water and sanitation
1973-2012, 5-year moving average commitments, constant 2012 prices
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
2000
4000
6000
8000
10000
1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012
USD million
Aid to Water & Sanitation,
5-y moving average, USD million
(left axis)
Aid to Water & Sanitation as a share of
total sector allocable aid, % (right axis)
Source: OECD/DAC statistics

Chart 2. Distribution of aid to water and sanitation by region
2011-2012, commitments, constant 2012 prices
Africa, South
of Sahara
31%
Africa, North
of Sahara
5%
South &
Central Asia
22%
Far East Asia
12%
Middle East
7%
South
America
9%
North &
Central
America
2%
Europe
5%
Oceania
1%
Other
6%
Source: OECD/DAC statistics

Charts 3a-3b. Sub-sectoral breakdown of aid to water and sanitation
2011-2012, commitments, constant 2012 prices
Chart 3a. Bilateral and multilateral commitments Chart 3b. DAC members’ bilateral commitments
Water supply
& sanit. -
large systems
57%
Basic
drinking
water supply
and basic
sanitation
20%
Water
resources
policy/admin.
mgmt
9%
Waste
management
/disposal
6%
River
development
4%
Water
resources
protection
3%
Educ./trng:w
ater supply &
sanitation
1%
Water
supply, basic
drinking
2%
Water
supply, large
systems
21%
Sanitation,
basic
1%
Sanitation,
large
systems
14%
Water
supply and
sanitation
combined,
basic
18%
Water
supply &
sanitation
combined,
large
systems
25%
Other sub-
sectors
19%
Source: OECD/DAC statistics Source: OECD/DAC statistics

Chart 4. Aid modalities in the water and sanitation sector
2011-2012, commitments, constant 2012 prices
Project-type
interventions
87%
Contributions to
specific-purpose
programmes
and funds
managed by
international
organisations
(multilateral,
INGO)
4%
Basket
funds/pooled
funding
2%
Sector budget
support
2% Technical
assistance
1%
Core support to
NGOs, other
private bodies,
PPPs and
research
institutes
1% Donor country
personnel
3%
Source: OECD/DAC statistics

This document discusses financing sustainable water services and associated trends and challenges. It analyzes sources of financing including international development aid, taxes, and tariffs. Trends show increasing aid to low-income countries but declining aid for basic sanitation and water projects. Challenges include reducing dependence on subsidies as financial resources decline and improving efficiency while ensuring long-term sustainability of services through consistent cost sharing between stakeholders.

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