Water sector benefits from $90million

The Samoa water sector has benefited to the tune of $90,000,000 over the past four years thanks to the European Union’s Budget Support Programme.

According to the E.U.’s Head of Office in Samoa, John Stanley, the E.U. will continue its support of the sector through the programme.

This on going assistance comes, despite the myriad of issues the sector’s utility is facing with recent reports that have the Samoa Water Authority losing not only money but also more than 52 million litres of water a day.

Mr. Stanley says his agency has to date given around $91,100,782.60 (€29,538,644) over the past four years to the Government of Samoa through Budget Support, of which the water sector has lobbied successfully for the lion’s share (see Table 1 above).

“No sector is perfect,” Mr. Stanley said.

“The water sector is making progress, which we must recognise, although it is true to say that it does still have some way to go."

“The S.W.A.’s response after Cyclone Evans really should be commended as it did a very good job to get water back in the pipes quickly despite some of the infrastructure being very badly damaged”.

“If the sector were perfect then the European Union wouldn’t have it as it’s focal sector as it wouldn’t need European Union support."

“However, it is very important that it continue making progress, especially to reduce Non Revenue Water and to cover its operational and capital costs which are fundamental to achieving financial sustainability.”

Mr. Stanley said included in the 2011 payment was €5.5 million to compensate Samoa for a down turn in the Global Economy and a payment of €2.585 million to help Samoa recover from the 2009 Tsunami.

“Both of the above payments were in addition to the ‘normal’ budget support payments related to the Water and Sanitation Sectors,” he said.

The way the E.U. gives support to the Water Sector is through the Budget Support Modality, Mr. Stanley said.

“This modality works by the European Union accepting that the Sector Plan,” he said. “The Water For Life Strategy, is of a good quality with ambitious but achievable targets."

“European Union funding is made directly to the Government’s Treasury Account.”

Mr. Stanley said the Budget Support Modality is in line with the Paris Declaration. According to the Organisation for Economic Co-operation and Development’s (O.E.C.D) website, the Declaration was signed in 2005 and is a practical, action-oriented roadmap to improve the quality of aid and its impact on development.

“It is the best approach to align with government priorities, ensures good country ownership and limits transaction costs,” Mr. Stanley said.

“Moving from a project approach to Budget Support took several years, with Samoa having developed a good sector plan and the European Union is glad to be assisting Samoa through this modality now that sector progress has been made.”

According to the Head of Office, the Union had been in partnership with the water sector since September 2010.

“Previous to this the European Union supported the Water and Sanitation sector through the project approach modality,” he said.

“It is important for the European Union to establish long lasting genuine partnerships, and that development priorities are jointly set with the Government of Samoa in the context of this real partnership.”

“The European Union looks forward to continue supporting the Water and Sanitation Sector under the 11th E.D.F. (European Development Fund) until 2020.”

Mr. Stanley said that the net loss recently reported by the S.W.A. in its latest Annual Report would not affect the E.U.’s budget support to Samoa.

“However those are important policy implementation elements that are discussed (and will be discussed) with the authorities on a regular basis, and in particular at the occasion of the sector meeting,” he said.

“It is of course in the interest of Samoa and the E.U. that the sector develop and gradually generates the needed resources to ensure sustainability in the medium term.”

“Good management of the sector is therefore a priority for us and it is through a permanent dialogue with the authorities that we encourage the development of adequate policies, good financial management and transparency for the sector. Those elements have improved over the years and efforts – supported by the EU – will continue to be made.”

It should however be noted, that despite the Union’s ongoing support, it can, and has subtracted money from the 40 per cent variable part of the tranche it donates to Samoa on a yearly basis when certain criteria are not met.

“Deductions have been from E.U.

Budget Support payments under the S.P.S.P. (Sector Policy Support Programme) I, due to the Water and Sanitation Sector not having achieved its water quality targets as stated in the Water for Life Sector Plan (see Table 2).

“The reductions in the amount paid has incentivised the sector to improve its’ performance against the targets established in the Water for life Sector Plan.

“Even with the deductions the total disbursed is 95 per cent of the programmed amount, thus making budget support a very predictable way of supporting (and incentivising) the water sector.”

Note: The Budget Sector Support money goes into the Government of Samoa’s Treasury account. It is for the Government of Samoa to decide if it goes to the water sector or not but the water sector has a strong lobbying tool. Saying that this is E.U. Budget Support money for the Water Sector.The E.U. would expect most of the money to go to the water sector but disbursements are not conditional on this actually happening. Furthermore, in 2011 there were two additional payments of €5.5m (included in the €10,220,500 above) and €2,585 that were for the downturn in the global economy and medium term assistance following the 2009 Tsunami.