Sector wide approach for the funding of rural water

supply Coordination of financial flows at the

intermediate level, case study from Benin

Michiel Smet PROTOS-Benin

Presentation overview

Decentralisation has been initiated in 1999, and implemented in 2002

Transfer of human and financial resources have followed slowly

Due to slow application of roles and responsibilities: intermediate level administration has not gained authority to coordinate

financial flows municipalities have not been able to gain experience in implementation

and planning

Transfer of financial resources is a prerequisite for effective coordination

Simple financial reporting tools need to be developed and applied by all sector actors, including non-state actors

Civil society needs to be implicated in the coordination to assure good governance

Sector wide approach:towards attaining the MDG

Goal

Equitable supply of water for at least 67% of the rural population by 2015

Objectives

1. Increased access to water-points (76%)

2. Multiple use of water and IWRM (4%)

3. Reinforcement of water sector actors (3%)

4. Reinforcement of water sector other than drinking water (12%)

5. Improvement of national and provincial government services (4%)

(2010 budget allocation)

Sector wide approach:Objective oriented budgeting

Objective oriented budgeting (2002) based on the 5 sector objectives

State and international development cooperation funds apply objective oriented budgeting

Non-state actors do not apply objective oriented budgeting

Little information is available on financial flows of non-state actors within the sector

Decentralisation of rural water supply envisaged roles and responsibilities

Intermediate

Service provider (Municipalities)

National

Current institutional situation

Min. energy and water

Provincial water direct.

Municipality

Min. decentralisation

Policy, normative and coordination

Community mobilisation

Procurement and

implementation

Regulation &

assistance

Intermediate

Service provider (Municipalities)

National

Current financial flows

National budget

Sector budget

Provincial sector budget

Municipal budget

Municipal development

fund

International aid

Non-state actors

Programmes

Projects

66%

28%

6%

Sector budget 2005-2010:distribution

2005

2006

2007

2008

2010

(pla

nned

)0%

25%

50%

75%

100%

MunicipalProvincialNational

Sector budget 2010:sources and distribution

Internal External Total 0.0

5.0

10.0

15.0

20.0

25.0

MunicipalIntermediateNational

Eu

ros (

million

s)

Intermediate

Service provider (Municipalities)

National

Envisaged decentralised situation

Min. energy and water

Provincial water direct.

Municipality

Min. decentralisation

Policy and normative role

Implementation, procurement,

service deliveryRegulation

& assistance

Regulation and coordination

Coordination structures

Coordination on intermediate level

Aggregation of information on intermediate level to monitor progress towards attaining MDGs

Documentation of experiences on municipal level in order to learn and inform national level and vice versa

Identification of municipal capacity shortcomings to reinforce institutional and technical capacities

Regulation and quality assurance

Implication of civil society in order to assure good governance and equity of service delivery

Coordination on municipal level

Participatory planning of development interventions

Coordination of sector actors and donors

Reporting of financial flows

Exchange of experiences among municipal actors and projects

Portal for water users federations to identify service delivery failures or shortcomings

Tools for an effective coordination

Strict application of roles proposed by the decentralisation process ✖

Application of simple financial reporting tools using the objective oriented budgeting system by all sector actors ✖

Participatory municipal sector planning to ensure coherent and transparent planning of implementation ✔

Implication of water users federations to ensure equity and good governance ✖

Thank you