financing water in tanzania: budget development & analysis, mdg and mkukuta costing
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Financing Water in Tanzania: Budget Development & Analysis, MDG and Mkukuta Costing. Susanne Hesselbarth DPG-Water Retreat Dar es Salaam – September 8, 2005. Overview. Budget Developments & Analysis MTEF and PER MDG and Mkukuta Costing. Funding for the Water Sector. - PowerPoint PPT PresentationTRANSCRIPT
Financing Water in Tanzania: Budget Development & Analysis,
MDG and Mkukuta Costing
Susanne Hesselbarth
DPG-Water RetreatDar es Salaam – September 8, 2005
Financing Water in Tanzania
Overview
Budget Developments & Analysis MTEF and PER MDG and Mkukuta Costing
Financing Water in Tanzania
Funding for the Water Sector
Strong increase in the water budget over past 5 years, from Tsh. 32.4 bn (FY 00/01) Tsh. 126.4 (FY 04/05)
W ater budgets (within Vote 49 and Regional Votes)
0
20
40
60
80
100
120
140
2000/1 2001/2 2002/3 2003/4 2004/5 Financial years
TSH bn
Donor Development
Ministry Development Ministry Recurrent Local Councils
93% of local developm ent funds for new Lake Victoria- Shinyanga schem e
Donor funds: 62% to urban 22% to sm all tow ns 10% to v illages 6% to sector reform
Less than 10% of budget goes to local councils
Financing Water in Tanzania
Funding the Water Sector
Execution of the water budget has been unsatisfactory (78%
in FY 00/01, 68% in FY 01/02, 48% in FY 02/03)
Individual budget components:
Recurrent expenditure: 10% of total in FY 04/05
Allocations to local councils: 10% of total in FY 04/05 Total
recurrent: 20% of total expenditure
Sources of Funding:
Donor Resources: 56% of water budget in FY 04/05
up from 51% in FY 2000/2001
Urban Focus of Development Expenditures
Financing Water in Tanzania
MTEF: Expenditure Planning
MTEF established as basic planning frameworkfor activities in the water sector
Not yet reflecting the NSGRP - Clusters
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
2004/2005 2005/2006 2006/2007 2007/2008
MTEF: Expenditures for Water
Recurrent
Development
Mio Tsh
Financing Water in Tanzania
PER: Expenditure Review
Since FY 2001/02, annual PER for the water sector
Finding of the PER 05/06:- sector achievements in terms of policy and strategy development
- increase in overall funding for the water sector in proportion to other priority sectors from 3,7% to 7,9%
- lack of uniform sector wide costing
Financing Water in Tanzania
Water Sector: Mkukuta and MDG
Water MDGs widely accepted in Tanzania and
reflected by NAWAPO and NWSDS
Mkukuta: Increased access to clean affordable
and safe water and sanitation is a core element
for poverty reduction
Cluster Strategies with interventions in the
water sector and operational targets until 2010
Financing Water in Tanzania
Costing
Several Costings of water-related MDG targets have been carried out in previous years.
Costing of the interventions for reaching the Mkutkuta operational targets are part of the Mkukuta Implementation Plan
Recognized need for a comprehensive medium- and long-term MDG and MKUKUTA costing
=> Define the Financing Gap
=> Basis for Investment Programme
Financing Water in Tanzania
MDG Costing
0
2 0 0
4 0 0
6 0 0
8 0 0
1 0 0 0
1 2 0 0
1 4 0 0
1 6 0 0
1 8 0 0
2 0 0 0
US
$ m
illi
on
M o W L D M P W a te rA id N R W S S P
C o s tin g R e s u lts
U rb a n S a n ita t io n
R u ra l S a n ita t io n
U rb a n W a te r
R u ra l W a te r
Comparative Analysis of costings shows large variations due to different assumptions
Financing Water in Tanzania
Mkukuta Costing
Most recent costing exercise initiated in July 2005 as Part of the Implementation Plan of the Mkukuta
Process led by the MoWLD Broad-based Stakeholder Workshop and
Focussed Policy Dialogues Draft Costing inspired by MP methodology and
informed by past costing Inclusive Approach WS, SS and WR
Financing Water in Tanzania
Mkukuta Costing
Mkukuta Costing Share of Subsectors in US$ Mio
177
2.021
1.349
Water Resources Water Supply Sanitation and Sewerage
Total Cost: 3.546 Mio US$
Financing Water in Tanzania
Mkukuta Costing
0
500
1000
1500
2000
US
$ M
io
Mkukuta MoWLD Water Aid MP NRWSSP
Comparative Analysis of Costings
Urban Infrastructure Rural Infrastructure
Financing Water in Tanzania
Financing Gap
2004/2
005
2005/2
006
2006/2
007
2007/2
008
2008/2
009 MTEF Expenditures
Costing Water SupplyCosting Total
0
100.000
200.000
300.000
400.000
500.000
600.000
Financing Gap in US$ Million
MTEF Expenditures Costing Water Supply Costing Total
Financing Water in Tanzania
Conclusion and Open Questions
Funding Gap -> Yes Quantification -> ? Relevance -> Mkukuta Costing as basis for
MTEF Next Steps -> Workshops for Discussion of
Draft Costing in 09/10 - 2005 Core Issues -> Mkukuta Costing vs. Sector
Investment Plan Priorization -> ?