Water Sector Strategic Development Plan(WSSDP, 2012-2025) AND SDGs: ANY LINKAGES?

1. Water Sector Strategic Development Plan(WSSDP, 2012-2025) AND SDGs:ANY LINKAGES? Presentation By Ibrahim Musah , Head of Policy and Partnership WaterAid

2. Introduction • Access to sustainable water and basic sanitation services is a basic human right • Water Sector Strategic Development Plan (WSSDP) provides the framework for achieving “sustainable water and basic sanitation for all by 2025.” • Rate of population increase relative to WASH service provision! • What does this mean financially? • Do we have adequate financing mechanism in place to achieve this Vision?

3. Outline of Presentation • Introduction • WSSDP • The WASH Sector in Ghana • Cost of providing WASH services • WASH Financing • Conclusion

4. What is the WSSDP? • Water Sector Strategic Development Plan(2012-2025) • Provides framework for implementing vision, policy objectives and targets for water and sanitation sector • It guides the water sector as a whole( state and non-state) in planning, dev’t, & Mgt of nation’s water resources in sustainable and equitable manner , and water related sanitation services • Vision : ‘‘Sustainable water and basic sanitation for all by 2025’’ • GWCL, CWSA , WRC and MMDAs are main implementing agencies

5. Issues with the Service!! Water Quality Reliability Accessibility Water coverage in Ghana

6. Population Growth Trends (2010-2025)

7. Sanitation coverage in Ghana

8. Costs components of sustainable WASH Capital expenditure (CapEx): Operational and minor maintenance expenditure (OpEx) Capital maintenance expenditure (Cap Man Ex)– rehabilitation, replacement Direct support costs – post construction activities, Indirect support cost – macro level planning and policy formulation Costs of capital – costs of loans

9. Cost of implementing WSSDP (2012-2025) • This translates to an average annual cost of US$386.89 million: • average recurrent of about US$42.40 million • Average Capital costs US$344.49 million

10. Details of SSDP financial allocation

11. Sources of Financing

12. Financing Water and Basic Sanitation Transfers –International • But there is a big financing gap…..Reflecting in poor coverage and service levels! • More financing required to achieve the 2025 target. • ODA will dip because of status as Lower middle –income! Capital costs Taxes –national government Recurrent cost Tariffs –user fees

13. Sustainable WASH financing • Transfers not enough! Only a small percentage of the overall financial needs to the sector. • Tariffs also not enough as focus is on the recovery of operation and maintenance costs. Under this heading are also the households own contributions to construction of their own infrastructure or paying for microcredit loans. • We need the taxes! This is the single largest source of funds for public goods and infrastructure dependent sectors like ours.

14. Proposed solution

15. GAPS IN WSSDP IN RELATION TO SDG GOAL 6 TARGETS • Pro-poor targeting is not highlighted to achieve universal and equitable access as mentioned in SDG target (6.2) • Pollution of water bodies and sources not adequately articulated to include co-ordination across sectors( 6.3) • Sustainability initiatives at community level • Definitive role of LGAs(service delivery authorities backed by adequate funding, M&E skills)?

16. Concluding remarks What can we do about the 3 Ts? • The country’s middle income status means grants are dwindling; commercial loans or concessional loans might be available • How do we mobilise additional sources of domestic financing (increased government allocation, pension funds, insurance companies?) • Can the sector compete for the loans? Sector needs to be better organised – well managed to ensure cost recovery. • Appropriate cost recovery policies and strategies • Efficient operations and management issues • Pooled funding for Capital Maintenance for rural water? • How can we optimise international transfers as a Middle income country? DPs?