sustainable financing of transboundary water …
TRANSCRIPT
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CAMBODIA LAO PDR THAILAND VIETNAM
SUSTAINABLE FINANCING OF TRANSBOUNDARY WATER COOPERATION IN BASINS – CASE OF MRCWORLD WATER WEEK
28 AUG 2019, STOCKHOLM
By Anoulak Kittikhoun and Santi Baran
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MEETING THE NEEDS KEEPING THE BALANCE
FUND CONTRIBUTION OPTIONS
• In-kind / monetary Contribution
• Fixed % • Example:
• Criteria Base Formula• Example:
1. Average flow (m3/s)
2. Irrigated area (million ha)
3. Population (million)
4. Per capita GDP (US$)
5. Catchment area (km2)
• Fisheries
• Water use
• Investment
• Equal Contribution• Example: 25% each
20% 20% 30% 30%= 100%
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MEETING THE NEEDS KEEPING THE BALANCE
MRC DEVELOPMENT
Established Basket Fund
2016
$65 Million / 5 years
Partly Core Functions60+ Staff
2030
Fully Core Functions50+ Staff
Self-finance
1995
Project
100+ Staff
1995 Mekong Agreement
Organizational Reform
Financial Reform
2000
Programme
$120+ Million / 5 years
DPs funding MCs contributed to
operation cost
200+ Staff
2010
1st MRC SUMMIT
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MEETING THE NEEDS KEEPING THE BALANCE
Financial Situation & Organizational Reform
Streamlined arrangements focused on core functions
MRC Secretariat Basket Fund
• Regional technical coordination
• Implementation of the Strategic Plan
• Implementation of the Procedures
• Implementation of Centralised Activities
• Operation CostSTAFFING
(Reducing over time)
2030DEVELOPMENT
PARTNERS
CONTRIBUTION
(Declining over time)
MEMBER
COUNTRIES
CONTRIBUTION
(Increasing over
time)
2000
202640 Staff
Self-Finance
2015
200+
201660+
50+
100+
2016
2015
$65 Million
$120+ Million
2010
1st
SUMMIT 36%100%
64%
2019
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MEETING THE NEEDS KEEPING THE BALANCE
Equal Contribution for Member Countries
Agreed option: Contribution percentage move 1% every 3
years from 2019
Basis for Equal Contribution:
• Increasing member country cooperation
• Country experience of MRC implementation
• Rising technical and financial capacity
• Growing economies and populations
• Mutual understanding, ownership and self sustainability
Option 1: Apply the 2015 formula in reversed orderOption 2: Apply the fix ratios (23% Vs 27%)Option 3: with the exception of 2016-2018 will be as below:MCs never missed
payment
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MEETING THE NEEDS KEEPING THE BALANCE
Value for Money Tools
High
3
2
1
Low 1 2 3 High
Achievement
Co
st
Cost & Benefit Analysis
Low Valuefor Money
High Valuefor Money
Costly
PoorIntervention
Reduce Cost
Increase Achievement
Reduce Cost & Increase
Achievement
Invest & Implement
• High Disbursement and High Completion: 7 Activities have used most of its budget and completed most of the work. These activities are progressing as planned.
• Low Disbursement and High Completion: 15 Activities have completed most of the work but has a large budget remaining. They have the potential to reallocate their budget to other activities.
• Low Disbursement and Low Completion: 63 Activities have not completed the majority of the work and used little budget. Need attention to urgently accelerate implementation in the next 7 months.
• High Disbursement and Low Completion: 6 Activities have used most of its budget, but the majority of work is not completed. Need attention to seek additional budget to continue work and justify for overspending.
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MEETING THE NEEDS KEEPING THE BALANCE
Challenges to Implementation of Fund Contributions
• Late transfer (although never missed). Explore mechanism if missed the deadline.
•Political goodwill to support consensus on the contribution amount• Sudden and/or faster Development Partner withdrawal• Strengthening and maintaining MC commitment and
contribution•Recruiting and retaining expert and skilled staff • Strengthening LA / NMCS / MRCS coordination and working
arrangements•Maintaining the momentum of the reform roadmap
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MEETING THE NEEDS KEEPING THE BALANCE
Thank you!
• Encourage national ownership
• Gather information and ideas
• Value Member Country viewpoints
• Blend and integrate ideas for sustainable financing
• Design & agree on a roadmap