1. African Partnerships Programme Support to the Katanga Province on post conflict reconstruction of the urban water sector - through the establishment of a programme management, project development and project implementation capability - 13 November 2008 Marlene vd Merwe-Botha for Department of Water Affairs & Forestry and Water Institute of Southern Africa

2. SWAP Agreed process for harmonization of systems Government- Led process of Donor Coordination Systematic Mechanism for Consultation of beneficiaries Clear & agreed Sector policy And strategy Common Performance Monitoring/ reporting Sector MTEF (all local and External Resources)

3. SA experience National NSDP (Political, strategic, policy) PROVINCES PGDS (Programmatic) LOCAL GOVERNMENT IDP (integration & implementation) PROJECT SWAP Cluster PDSU (Political, strategic, policy) COUNTRIES (Programmatic) LOCAL GOVERNMENT (integration & implementation) PROJECT SWAP AMCOW (Political, strategic, policy) CLUSTERs PDSUs (Programmatic) COUNTRIES (integration & implementation) PROJECT SWAP

4. Learnt from the SA experience that you need: Co-Ordination of funds + (Bankable) Projects that consider TECHNICAL, INSTITUTIONAL, FINANCIAL & ECONOMIC elements across the sector = Sustainable water services PDSUs, aligned with NEPAD development corridors, and applying SWAP will support countries in developing such bankable projects that will allow the flow of donor funds – and the gearing of these donor funds – to deliver sustainable water services towards AND BEYOND the achievement of MDG target 7c SWAP

5. About DRC and Katanga: DRC 57.5m people (2005), 68% rural dwellers, 8m in Katanga, 3% growth rate Since 1990’s, socio-political crisis – massive plundering, deterioration of infrastructure, closure of waterways eg Congo River, weak productive sectors, human, material and financial resources, high poverty (80% / population) Access to water 20%, electricity 1%, earth houses 64%, roads and trails 70% in deteriorated state Although a water-rich province, state owned water supply corporation (REGIDESO) supplies >6 m 3 / capita / annum of the urban population Limited water supply is polluted – waterborne ailments are prevalent (french drains and septic tanks) Inability of agency responsible for treatment & distribution of water in urban areas: –Increase level of coverage and access due to 16 year neglect –Accumulation of unpaid debt = 50% of billed invoices, mainly from government agencies –No maintenance to plant and equipment during years of conflict – pipe work is old and high leak profile –Lack of energy

6. Donor Policy in the DRC Significant international donor assistance in DRC – addresses a range of problems facing the DRC – mostly humanitarian International Financial Institutions: World Bank International Monetary Fund centre linked to housing and development initiatives. Bilateral Aid: Belgium European Commission The United Kingdom The United States Canada France

7. The Katanga Water Supply Project - Business Plan Outline (October 2008) To provide the context of support to the recipient country (DRC) and the direct beneficiaries (Katanga Province, REGIDESO and Lubumbushi community) To facilitate partners and stakeholders with specific interests and common development goals to make use of this project as a vehicle to accelerate delivery in Katanga and build the project into a regional programme and ‘beyond’ Describe how, via SWAP / PDSU / leveraging opportunities, the Katanga project could serve as front runner for SADC MDG wat&san acceleration programme

8. Purpose of Project DWAF, through “ Partnerships in the accelerated delivery of MDG’s in Africa” (APP) intend to provide support to REGIDESO by applying a R22 million ARF grant and complimentary funds for: 1. the implementation of short term interventions leading to immediate support to REGIDESO, such as: –Capacity building & training of identified individuals from REGIDESO –Provision of water supply equipment to REGIDISO –Addressing immediate and urgent O&M needs, incl training. 2. establishment of the SADC “Programme Development Support Unit” (PDSU) for its first project “Post-conflict reconstruction of the urban water sector linked to housing-, energy- and development initiatives in Katanga Province” through: –developing the PDSU Terms of Reference and Operations Plan –resourcing the PDSU 3. the longer term development of the Katanga water and housing Project to enable further leveraging of financing

9. Project: Support to Katanga Province DRC on post-conflict reconstruction of urban water centre linked to housing and development initiatives. Locality: Lubumbushi area Development Corridor: North South DC DRC Katanga stakeholders: Governor, RESIDESO, Ministry of Agriculture and Livestock - Natural Rural Water Service, Minister of Energy, Ministry of Environment, Nature Conservation and Forestry, et al. RSA stakeholders: Dept of Water Affairs and Forestry, NEPAD Business Foundation, Gauteng Province (GDLP and GEDA) (coordination), et al. Associated stakeholders: See next slide plus key partners such as UCLGA, SADC Water Division, IRC, WISA, Rand Water, dplg, etc Seed Funding: R 22 million plus Implementation mechanism: PDSU in Development Corridor, execution on country level via project, SWOP approach. Agreements: Provincial Katanga /Gauteng (signed) ; National RSA/DRC (n-sign)

10. StakeholderTheir Interest or Requirement From The Project What the project needs from them? Perceived Attitudes and/or risks Actions to take Department of Water Affairs and Forestry (DWAF) o Support capacity building and knowledge sharing; o Ensure adopting and implementation of the SWAP to project implementation; o Maximise support to meet MDG targets in Katanga province o Utilise funding from the ARF o Network platform/knowledge sharing on country-to- country basis o Resources via APP and MSB seed- funding o Leverage R 22m from ARF and other funds o Initial project development and implementation framework o Capacity building o DWAF fully committed to project and has set- up internal task team & PM to manage and support implementation o Negotiating a bilateral MoU with the DRC. Katanga Project as pilot o Location of project at national could potentially slow down implementation of project, hence DWAF/GPG to agree on implementation framework that is mutually beneficial and complimentary o Secure high level political buy-in from DRC at national level to support Katanga initiative; o Set-up fully mandated implementation framework taking into account MoU between Katanga and Gauteng. = Work within provincial agreement o Ensure timely release of ARF funding Gauteng Province (GDLP & GEDA) o Delivery on provincial commitments and agreements made during July 2008 Premier’s visit to Katanga (MOU) o 1500 housing units & services, water testing laboratory, spring project and recreational project; o Dedicated resources to support delivery of MOU o High level political commitment and support for stronger engagement with Katanga o Need more structured engagement with private sector through NBF o Financing o Set-up Gauteng Working Group (MOU) o Request Katanga Province to set-up Katanga Working Group o Identify sources of financing for related and linked projects

11. StakeholderTheir Interest or Requirement From The Project What the project needs from them? Perceived Attitudes and/or risks Actions to take NEPAD Business Foundation o Leverage opportunities for PPP in supply of wat&san services to Katanga Province o Programme oversight and coordination of multi- stakeholder input; o Optimisation of private sector capabilities during planning and execution phases; o CESA support for the PDSU o Engage IDC/DBSA/CPFP for project development o Fund-raising and mobilization of resources for Pre- feasibility and feasibility studies o Leverage partnerships with international development partners o Managing expectations o Force majeure o Market o Sponsor/participants o Costs o Interest and support from NBF members, particularly during project development stage o Identify interested parties among NBF members; o Facilitate setting up multi- disciplinary team through integration of DWAF Task Team/ GPL/NBF for a coordinated and integrated engagement with Katanga Province o Through CESA to facilitate and support technical visit to Katanga Province by multi- disciplinary and multi-stakeholder Project Steering Committee

12. Phases: Initiation, Planning, Implement&Control and Close-out Aug – Oct 08: Project identification MoU signature and political leadership Strategy and Approach development and Buy-in (RSA & International) - R 120k Sept 08 – Mar 09: Opportunity development and project preparation Concept Business Plan developed – R 120 k Stakeholders engagement  Feasibility Study (comprehensive **), TOR and Development funding - R2.4m  DWAF PM appointment and mobilise ARF funding April 2009 – March 2010: Project Implementation Infrastructure development and refurbishment – R 22m plus Capacity building – R 1.5 m Commissioning March 2010 ongoing: Close-out O&M and Management of assets, revenue, maintenance, etc Continued gearing of funds, grow the PDSU – regional integration.

13. STRUCTURE AND GUIDELINES FOR IMPLEMENTATION Support Process Stakeholder Cooperation Structure and Mechanism Communication Management System Capacity building procedures and interventions PreparationPlanning ProcurementO & MRenewal Main Process (core business of service delivery) Analysis Project design procurement process operation Contract Social, technical, Risk analysis design maintenance renewal Financial, Environmental Finance architecture bidding monitoring renegotiation Legal Investment, tarrifs negotiation Needs, PPP yes/no; Award of contract extension, arbitration Objectives PPP type construction Obstacles conflict Leveraging resolution Regulatory Process Cooperation with regulatory body/ies ( Political buy-in definitive contractual arrangements) Source: manual for sustainable municipal services, Swiss Development Agency

14. AfDB identified key considerations in implementing water and sanitation: Push higher up the political agenda; Develop sound policies & strategies; Prepare sustainable action & investment plans; Put local authorities in the driving seat; Build sector capacity with a focus on local players; Develop sustainable financing strategies; Initiate partnerships with the private sector; Encourage innovation, cooperation and R&D; Monitor progress and evaluate impact.

15. 1.Develop &/or update national water management policies, regulatory frameworks, & programmes, & prepare national strategies & action plans for achieving the MDG targets for water & sanitation (W&S) over the next 7 years 2.mobilize increased donor & other financing for the W&S initiatives including national projects & rural W&S initiatives, the African Water Facility, Water for African Cities programme & the NEPAD Infrastructure Project Preparation Facility, as committed in the G8 initiatives on W&S 3.strengthen AMCOW as a key regional mechanism, & other regional stakeholders, as relevant, for promoting cooperation on W&S AU Declaration Commitments SWAP PDSU solution offering

16. "The MDG’s are still achievable if we act now. This will require inclusive sound governance, increased public investment, economic growth, enhanced productive capacity, and the creation of decent work." United Nations Secretary General Ban-Ki Moon. THE END