Tanzania Water Sector

DPG-Water Retreat September 8th, 2005

Development Partner Support for Establishing a Sector Wide Approach

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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

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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

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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

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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.

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Key Components of a SWAp

Sector Policy /

Strategy

Sector MTEFPerformance Monitoring

System

Harmonised Systems

Coordination Process

Client Consultation Mechanism

Funding Arrangements

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Good Practices

What are the internationally recognized Good Practices for a SWAp?

How do we customize them for the Tanzanian water sector?

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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

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Harmonisation and Streamlining

Common arrangements for reporting, budgeting, accounting andprocurement system are often structured around one singlecommon pool fund / basket for the financing of the program.

However, ideal solutions are often costly, problematic anddemanding of government time.

Remember: we set out to reduce transaction costs.

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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

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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?