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Financing Access to Basic Utilities for All

Financing Access to Basic Utilities for All. Mobilizing Finance: Zambian Experience Sam Gonga DTF. Overview. Background Overview of Financing Options Financing WSS services for urban poor in Zambia Conclusion. Background. Service Provision. Central Govt. L/Authorities. PSP.

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Financing Access to Basic Utilities for All

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  1. Financing Access to Basic Utilities for All Mobilizing Finance: Zambian Experience Sam Gonga DTF

  2. Overview • Background • Overview of Financing Options • Financing WSS services for urban poor in Zambia • Conclusion

  3. Background • Service Provision Central Govt L/Authorities PSP Sector Reforms - NWP 1994 Commercial Utilities

  4. Challenges after 1994 NWP • Low capital investments Dilapidated Infrastructure • Low Govt spending on water & payment of bills • Tariffs not able to meet capital costs • Limited skilled personnel • Difficulty accessing finance from donor & domestic sources

  5. Financing WSS for urban poor – DTF Zambia • Basket fund for WSS • Financed through govt & donor grants • Sustainable in the short to medium term • Target: improved access of the poor to WSS • Provided as grants to water utilities – no excuse for poor service delivery Priority to peri-urban areas

  6. DTF: Fund Components

  7. DTF Funding Arrangements Agreed % DTF CPs Monthly requirements 1 Account for Project Funds (EUR) DTF Admin. Account (EUR) 3 2 GRZ Account for Project Funds (ZMK) DTF Admin. Account (ZMK) 4 CUs Investments

  8. Project Selection Submission of Project Proposals Call for Proposals Initial Screening • Adressed to all CUs (exceptions possible) • Scope/content of eligible projects • Thresholds for project value • Application forms • Eligibility • Completeness Detailed Assessment • Review of proposed measures • Review of implementation concepts • Review of BoQs and Cost Estimates Prioritisation Financing Agreement Funding Decision • Cost per Beneficiary • Current WSS Situation • Potential to reduce Health Risks • Sustainability Risks • Recommendation by DTF Management • Decision taken by DTF-Committee

  9. Overview of Committed Funds (2006 – 2010)

  10. 11.5 Million 46% Impact on Target Population 70% in low income area 2005: 3.7 Million 2015: 4.4 Million 65% DTF Programme 2006 – 2010 1.0 Million No access to safe water Urban 2015: 2.85 Million DTF Programme 2011 – 2015 1.85 Million With adequate funds, almost all the urban population can have basic access to safe and sustainable water supply by 2015!

  11. Achievements • Six pilot projects completed between 2003-2005 • Cost US$450,000; beneficiaries 120,000 • Large scale financing under way: 2006/7 US$1.2M projects, 135,000 beneficiaries • Another US$1.4M projects for 2007

  12. Conclusion • Increase govt spending & donor aid in the short to medium term • DTF effective approach to serving the peri-urban areas • Possible to reach many peri-urban areas by CUs using DTF approach

  13. Thank you

  14. Targets for Water Supply Projects (2006 – 2010) *Assumption: 1 EUR = K 5,800

  15. Allocation of Funds (2006-2010)

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