1. Finance strategies for environmental infrastructure Xavier Leflaive Paris, 23 February, 2007 EAP Task Force

2. 2 Outline of the presentation Objective of the presentation Context Experience gained Ways forward

3. EAP Task Force 3 Objective of the presentation Share information on the latest developments of the methodology Discuss ways forward Identify priority areas of work, possibly for after Belgrade

4. EAP Task Force 4 Context What is a finance strategy A process Objectives –To support the design of a national/regional strategy on environmental infrastructure (water, sanitation, waste) –To check the feasiblity of this strategy –To substantiate dialogue on targets regarding the level/quality of service (e.g. coverage, standard, technology) –To assess the financial options to finance these targets

5. EAP Task Force 5 Context Why Finance Strategies? Because of –Lack of realism –Need to take account of affordability For households For public budgets Additional reasons –To provide a missing link between sector policies and programs and feasibility studies –To pave the way for external financing by providing clear and transparent data on financing requirements

6. EAP Task Force 6 CountryRegionUrban water supplyUrban sanitationMunicipal Waste Georgia National Moldova National Russian Federation Kaliningrad Novgorod Pskov Rostov on Don Yaroslavl Khanty-Mansijsk (KhMAO) Leningrad Oblast + St.Petersburg Caucasus Mineral Water region Kazakhstan National Eastern Kazakhstan Oblast Ukraine National Armenia National Armenia Lori and Shirak marzes Experience gained in EECCA

7. EAP Task Force 7 Experience gained Selected outcomes from FS Water –Substantiates a policy dialogue on the level of sevice for urban water supply –Contributes to the awareness that sanitation should be a priority issue and is affordable –Provides an estimate for the costs of achieving the MDGs –Rationale for a revision of tariff policy Waste –Provides substantial input to a national/regional Master plan –Analyse capacity of the sector to attract private operators –Raises the issue of intermunicipal cooperation

8. EAP Task Force 8 Ways forward Enhancing the relevance of FS Reliability of data –Data collection –The case of rural areas Relevance of alternative scenarios –Identify the appropriate policy options (level of service, geographical aggregation, etc.) A focus on implementation –Plugging the finance strategies into The revision of PRSP Budgetary decision making (MTEF) Tariff setting procedures –Monitoring the implementation (performance indicators) Revising finance strategies, to account for –New demand forecasts –Updated costs –Revised potential revenues