session harmonization 3c - claudette lavalle pronasar uganda 12 04 2010

Kampala, 14th of April 2010

Ministry of Public Works and Housing

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NATIONAL RURAL WATER SUPPLY AND SANITATION PROGRAMME:

“Reach the objective of Millenium Development Goals through sustainable Water

and Sanitation services ”DNADNA



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Step towards alignment and harmonisation Step towards alignment and harmonisation

National Context

• Revision of Water Policy 2007 Target of 70% RWS and 50% Rural Sanitation for 2015; Participation of Private Sector and NGOs.

• Descentralization and Desconcentration Decentralisation and deconcentration of funding for water sector to the local Decentralisation and deconcentration of funding for water sector to the local

levellevel

• Commitment of the Sector Strategic Plan or Rural Water and Sanitation sector (PESA-ASR 2007)

Establish a vision and strategy of the sector; Establish priority of the sector; Establish role and responsibility for each level of decentralisation.



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Current situation• Multiple financial and management agreement for the rural

water sector : Water and Sanitation Support fund (from Holland

government) in line with Mozambican government ; Loans ; International Agency (directly to National Direcgtorate for

Water / Provincial direcgtorate of public works and housing /Districts)

IMPLICATION:• Multiple mechanisms of financial management • Different Procurement procedure – which create limitation • Difficult to produce one accounting report for all investment

of the sector

Characteristics of financial management Characteristics of financial management



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Step toward harmonization Step toward harmonization

International Commitment

• 2000 – Milenium Development Goals,

• 2003 – Rome Declaration,

• 2005 – Paris Declaration,.



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PRONASARPRONASAR

PRONASAR – National Program for Rural Water and Sanitation – a government initiave which

aims to align and harmonize all the effort of all stakeholder in Rural water and sanitation to:

• Bring access and used of Safe Water supply to more than 4.5 millions people, living in

rural area through the construction of 12,000 water points and 120 small piped systems

before 2015.

• Bring access and used of safe sanitation services to more than 2 millions people, living in

rural area through the self construction of 400,000 family latrines;

• Increase the financial investment to reach the target of 300 millions US dollars (50

millions USD/year);

• Increase the internal budget for the sector to the equivalent of 5% of the GDP.



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Improved the planning coordination and management

Improved control over implementation in the country

Improved transparency and responsibility Improved the financial accountability of the water

and sanitation sector.

The Government and some Development Parners in the Water

Sector agreed to change the current approach toward the SWAP

Tools to improved financial performance within PRONASAR

Tools to improved financial performance within PRONASAR 1



Signature of Code of Conduct (March 2008) for the water Sector between the Mozambican government and the development partner :

– Introduction of the Paris Declaration Principle, about harmonizatin of AIDs through the RURAL WATER AND SANITATION COMMON FUND;

– Defined financing mechanism for the flow of funds for the rural water and Sanitation sector to support the PRONASAR program.

– Nine Develoment Partners such: DFID, Holand, SDC, WSP, MCC, ADB, UNICEF, Canada CIDA e Austria, express per writing their commitment to support the PRONASAR (2009).

Elaboration o Memorandum of Understanding for the Common Fund (2009).

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Steps toward the establishment of a SWAP in Mozambique

Steps toward the establishment of a SWAP in Mozambique

Tools to improved financial performance within PRONASAR

Tools to improved financial performance within PRONASAR 2



• Financial management is implemented through the SISTAFE (Integrated System for State Financial Management); DNA is executing State Budget and ASAS funds through SISTAFE, since July 2008;

• PRONASAR will be financed by Government Funds and Development Partners (DP) Funds;

• Development Partners contributions to the Common Fund will be channeled to the CUT (Single Treasury Account) via a Forex Account in the Central Bank and be directly executed by Central and Local Government Institutions under the supervision and coordination of DNA;

• Parallel Development Partners -funds may or may not be inscribed in the budget (on-budget), and will be executed under the responsibility of Development Partners’s, restricting DNA’s supervision and coordination role.

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FINANCIAL MECHANISMS FINANCIAL MECHANISMS 1



• Government and Common Fund resources will be decentralized from Central Level to Local Level in accordance with the approved Annual Implementation Plan and Budget of PRONASAR;

• At Central level DNA is responsible and in charge of financial programming, budget execution and financial reporting.

• At Provincial and District level programming (including financial) is the responsibility of the DPOPH and the District Administration

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• At Provincial and District level the local DAF’s will be responsible for budget execution and financial reporting. DNA will have a monitoring and evaluation role in the execution of the decentralized funds and financial reporting;

• DAF at Central Level will be strengthened, through PRONASAR funding, with additional staff to operate e-Sistafe. This staff will provide capacity building at Local level (local DAF’s).

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DNADNA

FLOW OF FUNDSFLOW OF FUNDSFLOW OF FUNDSFLOW OF FUNDS



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Cooperation Partners Contribution to the Commun Fund for 2010

Cooperation Partners Contribution to the Commun Fund for 2010

PartnersAmount in original

currency (in Millions)Amount (in USD)

Government of Mozambique 60 MZM 2.0 Millions

DFID (Reino Unido) 2.5 Libras 4.0 Millions

Government of Holand 2.5 Euros 3.5 Millions

SDC – (Suíça) 1.2 Swiss Francs 1.1 Millions

Unicef 0.7 USD 0.7 Millions

CIDA (Canadá) 0.21 Canadian Dollars 0.2 Millions

TOTAL 11.5 Millions



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Por serviços de abastecimento de água e saneamento rural Por serviços de abastecimento de água e saneamento rural sustentáveis!sustentáveis!



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Thank you!

www.dnaguas.gov.mz

session harmonization 3c - claudette lavalle pronasar uganda 12 04 2010

Documents

rural water sector

rural sanitation

financial accountability

financial investmentto

financial mechanisms1

financial mechanisms3

water points

national rural water