Tanzania Water Sector DPG-Water Retreat September 8 th , 2005

1. Tanzania Water Sector DPG-Water Retreat September 8th, 2005 Development Partner Support for Establishing a Sector Wide Approach

2. Overview • New Developments in Aid Delivery • What do we understand by a SWAp? • Why do / should we want a SWAp? • Key Components of a SWAp • Good Practices • Guiding Questions and Proposed Agenda for Retreat

3. New Developments in Aid Delivery Trend to adopt • Program-Based Approaches • Policy-Based Lending Development Cooperation based on the principle of coordinated support for a locally owned program/ policy of development. Paris Declaration

4. What do we unterstand by a SWAp? • A Sector-Wide Approach is a way of working in a sector. • A Sector-Wide Approach is based on a locally owned program of development with the following characteristics: • Leadership by the host country • Single comprehensive program for sector (specific, time bound and costed set of actions and activitites) • Formalised process for donor coordination and harmonisation • Efforts to increase the use of local systems / procedures

5. Why do / should we want a SWAp? Motivation for Sector-Wide Approaches • To broaden ownership by partner Governments over decision making with respect to sector policy, strategy and spending • To increase coherence between sector policy, spending and results through greater transparency, wider dialogue and ensuring a comprehensive view of the sector • To minimise as far as possible the transaction costs associated with provision of external finance, either by direct adoption of government procedures or through progressive harmonisation of individual donor procedures.

6. Key Components of a SWAp Sector MTEF Performance Monitoring System Coordination Process Sector Policy / Strategy Funding Arrangements Client Consultation Mechanism Harmonised Systems

7. Good Practices • What are the internationally recognized Good Practices for a SWAp? • How do we customize them for the Tanzanian water sector?

8. Example for Good Practices – Sector Policy / Strategy A good Policy / Strategy Document would: • Be authored by the government and endorsed at high political level • Be consistent with the overall development strategy (Mkukuta, JAS, PRBS-PAF) • Establish basic principles, objectives and strategies • Adress the role of government in the sector, and define the allocation of responsibilities across government • Focus on the whole sector’s resource requirements • Have a strong result orientation • Set out clear mechanisms for monitoring, review and roll-over

9. Harmonisation and Streamlining Common arrangements for reporting, budgeting, accounting and procurement system are often structured around one single common pool fund / basket for the financing of the program. However, ideal solutions are often costly, problematic and demanding of government time. Remember: we set out to reduce transaction costs.

10. Harmonisation and Streamlining • Which aspects of harmonisation are likely to bring the greatest benefits in the short term? • Agreed, government-led sector strategy and program as foundation • Formal coordination framework - creates collective pressure / incentives towards harmonisation • Pooled funding of donors similar in outlook and approach

11. Guiding Questions and Proposed Agenda of Retreat • Where do we currently stand in Tanzania? What are the current challenges at the levels of sector reforms, monitoring, resource mobilisation and implementation (capital, urban, rural)? • How are we reacting individually to these challenges? • How might we increase our impact by reacting jointly to these challenges?What can we contribute and what do we need from the Government?