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4 TH Conference of the Water Directors of the Euro-Med & Southeastern European countries. Relevancy of the financial resources in addressing main sector issues. EIB contribution. Bled, 10 – 11 December 2007 José Frade, European Investment Bank.
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4TH Conference of the Water Directors of the Euro-Med & Southeastern European countries Relevancy of the financial resources in addressing main sector issues. EIB contribution Bled, 10 – 11 December 2007 José Frade, European Investment Bank
Long catalogue of issues in the region’s water sector • Global: water scarcity, droughts & floods, impact of climate change (CC), desertification, population growth • Social: poverty, low affordability, gender inequity, lack of public awareness & education • Environmental: pollution and degradation • Political: poor governance & political support, low revenues • Managerial: poor performance of systems & allocation of water resources, fragmentation of water management • WILL THE CATALOGUE BE THE SAME IN THE YEAR 2020?
Key actions & solutions to address the issues • Global: plan & design projects to adapt to CC, invest on prevention (not reconstruction), allocate & manage water resources correctly, apply IWRM as a tool (not an objective) • Social: use better (target) grants & blend it with other funds, maximise efficiency to minimize costs & tariffs • Environmental: prioritise hot spots, invest with support of grants & loans to ensure cost recovery at Wtp levels (afford.) • Political: design and set institutions that could perform well, stop keeping tariffs as a political hostage – focus on efficiency • Managerial: give utilities all the resources required, reward performance & make it accountable (stop chicken & egg loop)
How can financial resources help • Global: support technical assistance to ensure proper plan & design of investment + allocation & management of resources • Social: donors should: i) coordinate to ensure better use of grants & blending with other funds; ii) fund water efficiency • Environmental: fund hot spots with the right blending of funds • Political: support TA for institutional restructuring, redesign of utilities and capacity building – if necessary through PPPs • Managerial: support TA for reorganisation, project preparation and implementation ensuring transfer of know-how • HOW COULD THIS CONFERENCE ENDORSE AND INTERNALISE IT?
The EIB contribution • TA available under FEMIP (www.eib.org/med/index.htm)to support objectives mentioned before. In-house expertise added value • The EIB has been and is keen in coordinating better with other donors on best use of TA and blending of funds • Strong support and involvement in Horizon 2020: recent study identified 77% of environmental investment needs for wastewater collection and treatment in the MED region • EIB is considering a pro-active support to water efficiency: i) resource allocation efficiency; ii) utility efficiency; iii) system efficiency; iv) user consumption efficiency (4 efficiency drivers) • WHAT ELSE WOULD YOU LIKE TO SUGGEST?
A FEW DATA ON EIB SUPPORT TO WATER SECTOR • FEMIP Portfolio for TA to water & ww (+ waste): • 2003 => 14 contracts (39% of total n°) for 5.2 M € (30%) • 2004 => 9 contracts (28% of total n°) for 4.4 M € (20%) • 2005 => 18 contracts* (72% of total n°) for 21 M € (75%) * include 8 actions identified to be contracted • Horizon 2020 – identified projects for possible support: • Wastewater: 24 (56% of total) amounting to 1.6 bn € (77%) • EIB lending in the water sector in the Partner Countries:
