Recent Developments in the Tanzanian Water Sector

1. Recent Developments in the Tanzanian Water Sector DPG-Water, November 7th 2006

2. DPG-Water: History & Division of Labour • First informal meeting September 2004 • ToRs set out August 2005 • Chair and Secretariat 2005/06 – Germany/KfW • Retreat September 2005 • Joint field trip with MoWLD November 2005 • First meeting with new MoW management in March 2006 • Since then joint DPG-W and MoW meetings in alternating months • Joint DPG-W / MoW task force for preparation of Joint Water Sector Review • Since September 2006 Co-chair arrangement – Germany/KfW and WB; Secretariat – Water and Sanitation Programme (WSP) • Members: 17+ development partners • Lead partners: Germany, WB • Active partners: UK, Japan, Switzerland, France, US, Belgium, EIB, FAO, UNICEF, AfDB, WSP, WaterAid • Silent / delegating partners: EC, Netherlands, Sweden, other UN agencies

3. MKUKUTA targets for Water • Increased proportion of rural population with access to clean and safe water from 53% in 2003 to 65% within 30 minutes of time spent on collection of water • Increased urban population with access to clean and safe waterfrom 73% in 2003 to 90% • Increased access to improved sewerage facilities from 17% in 2003 to 30% in respective urban areas • Reduce households living in slums without adequate basic essential utilities • 100% of schools to have adequate sanitary facilities • 95% of people with access to basic sanitation • Reduce cholera out-breaks by half • Reduced water-related environmental pollution from 20% to 10% in 2010 • Increase access to reliable water as a resource for economic production, incl. sustainable management of water catchment areas • Promote water use efficiency in irrigation schemes

4. Jul 02: approval of National Water Policy Jun 04: preparation of sub-sector investment plans (rural, urban, and WRM) Jun 06: consolidation of overall Water Sector Development Program (WSDP, 2006-2025) Aug 06: stakeholder workshop on WSDP Sep 06: 1st Joint Water Sector Review Oct 06: Joint Appraisal of WSDP forthcoming: approval of National Water Sector Development Strategy and Water Legislation SWAp Roadmap

5. Process of Water Sector Review • Preparatory work through Joint Task Force and commissioning of Situation Analysis Report • Two-day stakeholder meeting involved Ministries, DPs, private sector, civil society, media and research institutions, allowed for exchange of ideas about different aspects of the sector • The extended JWSR process resulted in much improved dialogue between MoW and DPs; formalized through an accepted framework based on principles of JAS • Detailed Agreed Undertakings for 2006/7 • Formation of Water Sector Working Group and four permanent Thematic Working Groups: - Planning & Finance; - Performance Monitoring; - Institutional Development and Capacity Building; - Sanitation and Hygiene

6. Undertakings from the Water Sector Review • operationalise the NWSDS, WSDP and the Basket Fund, and facilitate approval of Water Legislation, all of which are in an advanced stage of preparation • operationalise mechanisms by which funds will be channelled from MoF to implementing authorities and agencies • reflect the financial requirements of the WSDP in the budget for FY 2007/08 and MTEF projections for subsequent FYs • secure full funding of the WSDP (up to 2010) from domestic and foreign resources, and/or prioritize interventions according to resource availability • put in place mechanisms to ensure agreed output and outcome indicators in the performance monitoring framework can be regularly measured, including establishing baseline data • implement the proposed sector dialogue mechanism, including the establishment of a MoW Dialogue and Coordination Team; Water Sector Working Group (WSWG); and thematic Working Groups • initiate immediate sensitisation and training for staff of the implementing agencies (LGAs, BWOs, utilities and Executive Agencies) in issues related to new roles and responsibilities as well as new funding arrangements

7. Functions: debate policy choices & effectiveness of spending, monitor performance, assess strategies, agree on future undertakings Functions: on behalf PS MoW Liaison with Stakeholders and DPs, secretarial functions to WSWG and JWSR, documentation and reporting, dialogue co-ordination Joint Water Sector Review (Annually) reps and decision makers from GoT, stakeholders, DPs, civil society Functions: monitor progress, debate challenges to progress, consultation on decisions. Water Sector Working Group (Quarterly) PS for Water & PS for Local Government Technical reps from key stakeholders, incl. DPs and CSO MoW Dialogue & Co-ordination Focal Point Functions: information sharing, consult on decisions, debate challeges to progress, coordinate DP inputs, coordinate TA Thematic Working Group Sector Performance Monitoring Thematic Working Group Sector Planning & Financing Thematic Working Group Institutional Development & Capacity Building Thematic Working Group Sanitation & Hygiene (incl. HIV/AIDS mainstreaming) Thematic Working Groups meet bi-monthly. Members shall be professionals from GoT/Ministries, NGO’s and DPG Water Way Forward: Dialogue, Monitoring, Coordination

8. Water Sector Development Program (WSDP) • Joint Appraisal Sept. 20th – Oct. 2nd 2006 • Designed to implement MKUKUTA, MDG and Vision 2025 targets • Covers four components: water resources management, community based water supply and sanitation, commercially operated water supply and sanitation, institutional strengthening and capacity building • Investments of $ 950 million required over MKUKUTA period • Implementation through decentralized entities: water basin offices, local governments (LGCDG), commercial utilities, and Ministry of Water • Funding through a combination of sources: GoT contribution from own revenues and GBS, pooled resources (water sector basket), and direct project funding • Use of existing GoT systems to the extent possible • Oversight through established sector performance monitoring framework and dialogue/review processes

9. Water Sector Basket • Pooled Funding Partners will sign an MoU as an indication of their intent to contribute to the joint funding of the WSDP (“Water Sector Basket Fund”), plus their agency-specific financing agreements • GoT will open the WSDP Basket Fund Holding Account in the BoT for the deposit of the pooled funding contributions by the Pooled Funding Partners • Pooled Funding Partners will make quarterly deposits into Holding Account, in proportion to their overall contribution to the Basket for the fiscal year • Deposits into the Holding Account will be based on forecasts of projected expenditures for the following two quarters as set forth in the approved Annual Work Plans and Budgets. • Each release of funds from the Holding Account will be approved by the Sector Working Group • Initial amounts pledged for the Basket: $ 310 million

10. Water in the PRBS Annual Review 2006 • Water Sector Review was considered satisfactory by sector stakeholders • Since Water Sector Review did not identify major obstacles to progress, no issues from the Water Sector were raised for consideration and high-level dialogue during PRBS review • Two delayed temporary process actions (legislation, sector strategy) have been rescheduled and appear to be on track • Outcome indicator: MKUKUTA targets not yet measured annually - definitions and monitoring mechanisms are being discussed in the Performance Monitoring Thematic Working Group • Main issues for coming year: - Need to strengthen sector coordination and inclusiveness particularly the involvement of allied Ministries (PMO-RALG, Health, etc), civil society and private sector in sector oversight arrangement - Need to accelerate steps at capacity building at local government level and private sector supply responses - Need to align WSDP financing plan with MTEF

11. Thanks for your attention - Questions welcome!