ACP-EU WATER FACILITY

1. ACP-EU WATER FACILITY Jo Smet- IRC 22 October 2004 Jo Smet-ACP-EU Water Facility

2. Background-History of ACP-EU Water Facility • 2002: EU-WI launched at the World Summit on Sustainable Development: Global approach for improving water access and sanitation. • 2003: Commission Communication on establishment of a 1 b€ Water FundCatalyst towards achievement of WSSD and MDG targets. • 2004: Commission Communication on the modalities of the ACP-EU Water Facility is endorsed by EU Council and ACP-EC Ministers Council • 2004: => Start of operations of the ACP-EU Water Facility Group Jo Smet-ACP-EU Water Facility

3. Key principles of the Water Facility • Ownership: • Facility is fully demand driven • Close co-ordination with components in EU-WI and AFRICAN-EU partnerships on WATSAN • WF intends to build bridges and to foster dialogue with African institutions and initiatives: NEPAD, AU, AMCOW and AWF • At country level link to PRSPs and relevant national policies/ commitments • Integrated Approach: • Applying principles of IWRM: strong stakeholder participation; pro-poor emphasis; livelihoods of the poor; gender sensitivity • Target Group: • Primary target groups are the poor in cities, small towns and villages • Priority to those currently un-served and for socially disadvantaged Jo Smet-ACP-EU Water Facility

4. Key principles of the Water Facility- cont’d • Innovation and Flexibility: • Catalyst: promoting initiatives; building governance/management capacity; • Creating leverage, a capacity builder; the missing link in financing sustainable projects (co-financing); mobilising new financial flows • Transparency and equality of chances: • Rendering access to project funding on equal, open basis; demand-driven • No discrimination and glass house approach on plans & proceedings; if needed adjustments in 2nd Call • No pre-determined fund allocation to regions/themes, selection of projects will include balancing • Sustainability: • Institutional, social, financial, economic, technical viability leading to sustainability also for governance and management of investments and for environment • Supported by training and capacity building at different levels • Global environmental approach: IWRM/river basin approach Jo Smet-ACP-EU Water Facility

5. Overall objective of the Water Facility To assist applicants and potential beneficiaries in the achievement of water-related MDGs and WSSD targets for water supply and sanitation: • Halve by 2015: • the number of people without sustainable access to safe drinkingwater • the number of people without sustainable access to basic sanitation • Develop integrated water resources management plans The Facility works to develop improved access to water and better sanitation for the livelihoods of the poor in urban, town and rural areas. Jo Smet-ACP-EU Water Facility

6. The Objectives of the Water Facility will be pursued through: • open • transparent and • non-discriminatory calls for proposals Jo Smet-ACP-EU Water Facility

7. Three main components of the WF • Improving water management and governance in ACP states. • Co-financing Water and sanitation infrastructures • Initiatives presented by Civil Society Organisations(total some 72% of budget – indicative %) • Total 180 M-EUR plus 10M M&E, Audits … and by some activities not covered by calls … • Specific agreements (AWF 20M; NBI 18M; geographical imbalances, EU-WI, post conflict and post disaster rehabilitation 15M and total management/admin 7 M Jo Smet-ACP-EU Water Facility

8. Details on 1. Improving the water management and governance Includes regional, national and local level initiatives to: • Improve national policies and strategies in WATSAN sector • Improve institutional and legal framework • Build capacity of stakeholders (particularly for preparation, implementation and management sector programmes) • Enhance IWRM, particularly supporting good practice in basin management • Enhance management of transboundary basins. Activities of EU-WI w/groups on IWRM and WATSAN (Africa) may mobilise potential applicants to develop proposals they can submit! Jo Smet-ACP-EU Water Facility

9. Project grants Jo Smet-ACP-EU Water Facility

10. Eligibility of applicants • Depending on the specific WF component. • Legal entity with a public function related to water (public authorities and utilities, parastatal companies, semi-public or private entities with concessional rights, etc;). • Consortia/JVs are welcomed (co-donors, partners) • Civil Society Organisations • International Organisations (UN, IFIs • … and for ACP States: Governments, Ministries Jo Smet-ACP-EU Water Facility

11. Eligibility issues for 2. Co-financing Water and Sanitation Infrastructure • No direct support to private industry investment • No duplication/replication of export credit agency services • Involvement of private sector is viewed as a National or Local Government choice • Involvement of private sector does not affect eligibility of proposals • WF can contribute to PPPs or other forms of PSP both at international and local level • Innovative ways to leverage private and commercial funding can be proposed Jo Smet-ACP-EU Water Facility

12. Eligibility issues for 3. activities realised by Civil Society Organisations • Proposals must include development of physical infrastructure • Focus on smaller scale operations in very poor urban and rural areas • Strong focus on poverty reduction and improvement livelihoods of the poor • Discussion with non-State actors (NGOs?) still ongoing to establish best framework in which viable projects can be submitted and approved! Jo Smet-ACP-EU Water Facility

13. The call will have three components: Water Management and Governance Co-financing Investments in Water and Sanitation Civil Society Initiatives And a two phase selection procedure: Pre-selection phase criteria: Relevance Financial and operational capacity Award phase criteria: Sustainability Methodology Economic and financial feasibility The Call for Proposals Jo Smet-ACP-EU Water Facility

14. The Call for Proposals Selection and award • By 7 voting members evaluation committee (1 from ACP sec, 1 from IAG?) + Commission officials from at least two units • The ACP-EU WF group (EC) is assisted by experts • Ranking by component • Limited clarification and negotiation on certain aspects • Evaluation Committee proposes awards to Director ACP in DG EuropeAid Jo Smet-ACP-EU Water Facility

15. The Call for Proposals Jo Smet-ACP-EU Water Facility

16. OUTLOOK A very informal (growing !) project pipeline • Some 20 potential project proposals signalled from EIB, AFD, KfW, AfDB (AWF), NBI, WSP and EC Delegation in Central African Republic • Proposed interventions: W&S, IWRM, capacity building, preparatory studies • Total project cost: 660 Mio € • Potential grant that could be requested: 240 Mio € Jo Smet-ACP-EU Water Facility

17. OUTLOOK Key dates 2004: • October: Call for Proposal to EDF Committee for 2 weeks’ Consultation (written procedure) • October: final discussion with NGOs on modalities • October/November: launch of Call for Proposals • October-November 2004: Dissemination activities on the call • 15 November: Brussels Dissemination Seminar • End of November 2004: EDF Committee (Fin. Proposal 247 M€ with Modalities) Jo Smet-ACP-EU Water Facility

18. Consultation on the modalities • Meetings with IAG, MS: accommodation of comments • Meeting with ACP Secretariat and Committee of Ambassadors • Meetings with NGOs and with private sector water operators • Revised modalities sent to IAG, ACP states • Revised modalities to stakeholders after IAG & ACP comments • Modalities fed into Financing proposal and into Call for Proposals • Selection criteria sent to IAG Jo Smet-ACP-EU Water Facility

19. What is next…..? • After first Tranche: evaluation how it went? Process, procedures and spending • Next tranche by April 2005? • More tranches?? Uncertain. • http://europa.eu.int/comm/europeaid/index-en.htm Jo Smet-ACP-EU Water Facility