Educomunicación

Significant investments were made in the Water Sector during the 1970s and 1980s by the Government of Tanzania, in collaboration with Development Partners and Non-government Organisations. From the early 1990s to date, the Water Sector has been experiencing a sharp decline in financing for both rehabilitation and new development. This declining trend has continued to the point where the scarcity of financial resources available for development and rehabilitation of the existing schemes cannot meet the infrastructural demand. This works against the stated policy objectives of increasing water coverage and poses a major challenge to the Government.

The lack of a holistic and integrated approach in sector planning and financing of investment has also resulted in the persistence of regional, district and even intra-urban development inequalities arising from disproportionate levels of finance. Financing has been provided through multiple approaches used by financiers (by both Government and Development Partners). As a result, capital development for the rural water supply, sanitation, and water resources management sub-sectors continues to be under funded relative to the urban water supply sub-sector. Sustainable development of the Water Sector requires holistic planning and financing, stable financial mechanisms and availability of adequate funds for capital investments for both infrastructure expansion and rehabilitation. This also requires appropriate channelling of these resources to the prioritised needs. Under this programme, Capital Investment funding will be planned and sourced through the mechanism of a Sector Wide Approach to Planning (SWAp), and channelling agreed funding to the executing agencies through General Budget Support and other agreed financing mechanisms.

Expenditure for the recurrent costs of water resources management has been derived primarily from two sources. Firstly, the Government exchequer provides funds through budgetary allocations to the MoW and, secondly, through charges for water abstractions. Budgetary allocations from the exchequer have been below those required for effective water resources management and have been declining over the past ten years, with only three to five percent of the Ministry’s budget allocation going to support water resources management activities. The constraint of inadequate resources has resulted into poor performance in a variety of technical, administrative and legal activities, as well as deterioration of infrastructure for continuous water resources data collection, which are important for water resources management and development.

The Government has been disbursing recurrent budgetary allocations to MoW, the regional secretariats and local government authorities to finance water supply and sewerage recurrent activities such as personal emoluments and other expenditures on supervision, technical monitoring, and financial support on operations and maintenance. However, funding from the Government has continued to be constrained with the budget ceilings that are always below the sector requirements. The performance in collection of water revenues from consumers by service providers is generally poor with many consumers not being metered, and the level of unaccounted-for-water is unacceptably high. The combination of constrained government allocations and poor revenue collection has resulted in a shortfall in funds necessary to carry out operation and maintenance, which, in turn, has resulted in deterioration of infrastructure for both rural and urban water services.

Sustainable operation and maintenance of water supply and sewerage schemes will be based on financial mechanisms that ensure adequate levels and appropriate channelling of financial resources. The source of funds for recurrent costs in urban areas will be from

consumers, based on cost recovery tariff principles, while in rural areas communities will be required to pay full operation and maintenance costs and costs of higher service levels, and contribute to capital investment costs, as well as to manage their schemes.

The total cost of the Water Sector Development Programme is estimated at TZS 3,614,700 million (USD 2,891.76 million), to be invested over the 2005 – 2025 timeframe. These funds would support attainment of WRM, National Rural and Urban Water Supply and Sanitation objectives and targets.

Moreover strengthening of MoW is estimated at TZS 17,200 million (USD 13.76 million) while strengthening Executive Agencies is estimated at TZS 38,500 million (USD 30.83 million).

These costs are summarised in Table 6.1a and supported by further detail provided in Annex B:

Table B.1: Summary - Water Resources Management and Development Investment Plan (USD);

Table B.2: Detailed Costing of WRM Investment Plan (USD);

Table B.3: Detailed NRWSSP Investment Requirements (USD millions); and Table B.4: UWSSP Capital Investment Requirements (TZS millions).

The budgets included in the three programme component investment documents that were used to generate this global figure differ somewhat in various ways, including: format and structure; time periods used; and currency.

The investment programme budgets are merged into a basic structure for comparative purposes. Three major investment categories were used: capital investment; management and operations support; and capacity development:

• Capital Investment (TZS 3,075,460 million / USD 2,460.37 million): The major portion of investment requirements is allocated to capital costs within all three programme components, including among other items: rural & urban water & sewerage systems; building construction & rehabilitation; office furniture, equipment & computers; vehicles; and technical equipment.

• Management & Operational Support (TZS 282,250 million / USD 225.80 million): These costs relate largely to district operational support under the NRWSSP and basin-level operational support under the WRMP programmes (no such support is envisaged under the UWSSP), including: vehicle operations, travel expenses, staff salaries support, and other items.

• Capacity Development; TZS 84,860 million (USD 67.89 million): All three programme components include investment in capacity development of various kinds at district, basin, UWSA, regional and national levels.

A contingency of TZS 172,130 million (USD 137.70 million) has been included.

6.1 WRMP Costs

6.1.1 Context

The Water Resources Management Programme aims to:

• Develop a sound water resources management and development framework in all nine basins, for optimising the utilisation of the water resources in a sustainable manner for the various competing uses; and

• Promote good governance of water resources through empowering water users, encouraging participatory and transparent decision-making, devolving ownership to the user level, and granting secure water rights with responsibilities to the water users, community groups, local government and Basin Boards. Strengthen the capacity of Lake Basin offices to address trans-boundary lake and lake basin issues. The WRMD&I document lays out a three-component plan for the 2005/25 - encompassing: basin-level water resource reforms and investments; national water resources reforms and investments; and national cross-sectoral investment programme.

Basin-level water resource reforms and investments include:

• Establishing and Strengthening Basin Water Offices;

• Water Resources Monitoring, Assessment & Enforcement;

• Water Quality Management and Pollution Control;

• Protection of Important Water Source;

• Water Demand Management;

• Integrated River & Lake Basin Plans; and

• Priority Water Resources Infrastructure Investments. National water resources reforms and investments include:

• Human Resource Development;

• Operational Support to the Water Resources Division;

• Trans-Boundary WRM;

• Development and Implementation of National Communication & Awareness Strategy;

• Strengthen HRD in IWRM;

• Floods & Droughts Management;

• Cross-Cutting Activities; and

• Research and Studies.

National cross-sectoral Investment includes:

• Harmonisation of Policies, Laws, Strategies and Plans;

• Cross-Sectoral Coordination; and

Table 6.1a: Summary WSDP Investment (TZS millions x 1,000)

2005 - 2011- 2016 - 2021-