RAPPORT No: 43912-BF Burkina Faso Public Expenditures Review Rural Water and Sanitation Sector March 2008 AFTU2 Africa Region World Bank document This work was financed by BNWP-2, the Partnership for Water between the World Bank and the Netherlands and whose aim is to support Bank’s operations intended to provide better services of water and sanitation to the poor. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. EXCHANGE RATE (January 2008) Currency Unit = Franc CFA(FCFA) 1 USD = 450 FCFA Fiscal - Year January 1st, 2007–March 31, 2008 WEIGHTS AND MEASURES Metric system ACRONYMS AND ABREVIATIONS AEPA Approvisionnement en Eau Potable et assainissement (Drinking Water and Sanitation Supply) AEPS Adduction d’Eau Potable Simplifiée (Water Simplified Adduction) BF Borne Fontaine (Water standpost) CDMT Cadre de Dépense à Moyen Terme (Medium-Term Expenditure Framework) CID Circuit Intégré des Dépenses (Integrated Circuit of Expenditures) CSLP cadre Stratégique de Lutte contre la Pauvreté (Strategic Framework of Fight against Poverty) DAF Direction Administrative et Financière (Administrative and Financial Directorate) DAO Dossier d’Appel d’Offres (Tender Offer Document) DEP Direction des Etudes et de la Planification (Department of Studies and Planning) DGMP Direction Générale des Marchés Publics (Directorate-General of Procurement) DGRE Direction Générale des Ressources en Eau (Directorate-General of Water Resources) DRAHRH Regional Departments of Agriculture, Hydraulics and Halieutics Resources DRH Direction des Ressources Humaines (Department of Human Resources) FP Forage équipé de Pompe manuelle (Borehole with Hand Pump) INOH Inventaire National des Ouvrages Hydrauliques (National Inventory of Hydraulic Facilities) INSD Institut National de la Statistique et de la Démographie (National Institute of Statistics and Demography) IPPTE Initiative des pays Pauvres Très Endettés (Highly Indebted Poor Countries) IRDM Initiative de Réduction de la Dette Multilatérale (Initiative of Reduction of the Multilateral Debt) MAHRH Ministère de l’Agriculture, de l’Hydraulique et des Ressources Halieutiques (Ministry of Agriculture, Hydraulics and Halieutics Resources) MFB Ministry of Finance and Budget Ml Mètre linéaire (Linear meter) OMD Objectifs du Millénaire pour le Développement (MDG) PDL-AEPA Plan de Développement Local pour l'Approvisionnement en Eau Potable et l'Assainissement (Plan of Local Development for Drinking water and the Sanitation Supply) PDC Plan de Développement Communal (Plan of Communal Development) PEM Point d’Eau Moderne (Modern water point) PIB Produit Intérieur Brut (Gross Domestic Product) PIP Programme d’Investissement Public (Public Investment Plan) PMH Pompe à Motricité Humaine (Hand Pump) PN-AEPA Program National d’Approvisionnement en Eau Potable et Assainissement (National Program for Drinking Water and Sanitation Supply) PSNA Politique et Stratégie Nationales d’Assainissement (Sanitation National Strategic Policy) RWSS Rural Water and Sanitation Supply Vice-President - Obiageli Ezekwesili Country Director - Ishac Diwan Sector Director - Jamal Saghir Sector Manager - Eustache Ouayoro Task Team Leader - Christophe Prevost TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................ 1 1. Challenge of data collection.................................................................................... 2 2. Effectiveness and efficiency of RWS sector........................................................... 2 3. Inadequate Budget Programming ........................................................................... 3 4. A limited absorption capacity ................................................................................. 3 5. The challenge of investments sustainability ........................................................... 4 6. The devolution - decentralization gap..................................................................... 4 7. Harmonization of the PTF ...................................................................................... 5 8. Sanitation deserves a greater attention.................................................................... 5 I INTRODUCTION .................................................................................................. 7 II DATA COLLECTION ........................................................................................... 8 III STATE Of ACCESS TO DRINKING WATER AND SANITATION FACILITIES ................................................................................................................... 8 3.1 Delimitation between rural/semi-urban and urban areas. ............................... 8 3.2 Standards and technologies used .................................................................... 9 3.3 Access to drinking water in rural and semi-urban areas ............................... 10 3.3.1 Accesses to drinking water in 2005 .......................................................... 10 3.3.2 Access evolution to drinking water from 2001 to 2006................................... 11 3.3.3 Execution capacity of water points from 2001 to 2006 ................................... 12 3.3.4 Functionality of water points .................................................................... 13 3.4 Sanitation in rural and semi-urban areas....................................................... 16 IV SECTOR EFFICIENCY AND EFFECTIVENESS.......................................... 17 4.1 Execution capacity of AEP ........................................................................... 17 4.2 Execution capacity of allocated financial resources ..................................... 17 4.3 Per capita investment cost............................................................................. 18 4.4 Unit cost of AEP investments ....................................................................... 18 4.5 Regional equity in the access rate evolution to drinking water .................... 19 4.6 The share of sanitation and hygiene promotion in the total budget.............. 19 4.7 Functionality of facilities .............................................................................. 19 V STRATEGIC FRAMEWORK OF RWSS SECTOR ........................................... 20 5.1 Legal Framework .......................................................................................... 21 5.2 The Institutional Framework......................................................................... 21 VI ANALYSIS OF THE EVOLUTION OF PUBLIC EXPENDITURES IN RWSS 23 6.1 Budget allocation to RWSS sector................................................................ 23 6.1.1 Evolution of budget allocations ................................................................ 23 6.1.2 Public funding of RWSS........................................................................... 24 6.1.3 Other sources of financing of RWSS water points. .................................. 25 6.2 Budgetary resources for operation at the regional level ............................... 30 6.3 Recipients and local communities contributions .......................................... 31 VII PROSPECTS at HORIZON 2015..................................................................... 32 VIII CONCLUSIONS AND RECOMMENDATIONS ........................................... 33 List of Tables Table 1:Equipment Standards ............................................................................................. 9 Table 2: Autonomous sanitation equipment standards ....................................................... 9 Table 3: Access rate to potable water (rural and semi-urban area) - 2005 ....................... 10 Table 4: Evolution of potable water access rate - 1994-2003 (INSD).............................. 11 Table 5: Population served annually in potable water 2001 - 2006.................................. 12 Table 6: Modern water wells built and rehabilitated from 2001 to 2006 ......................... 13 Table 7: Rate of breakdowns of hand pumps (2005)........................................................ 14 Table 8: Non functionality rate of water points (2005) .................................................... 15 Table 9: Sanitation coverage in rural area – in %............................................................. 16 Table 10: Ouvrages réalisés 2001-2006............................................................................ 17 Table 11: Comparison of expenditure to the number of water points constructed........... 17 Table 12: Rate of budgets execution (2001-2006)............................................................ 18 Table 13: investment cost per capita in the AEPA sector (2001-2006)............................ 18 Table 14: unit cost of AEP investments per capita (in US$) ............................................ 18 Table 15:Rate of broken down facilities (2005/2006) ...................................................... 19 Table 16: budgetary allocations to RWSS 2001-2007...................................................... 24 Table 17:Evolution budgetary allocations to RWSS 2000-2006 (in billion of FCFA) .... 24 Table 18: RWSS Budget by source of funding 2001-2007 – in %................................... 25 Table 19: Budget provisions by source of financing 2001-2007 in % ............................. 25 Table 20: Financing Sources by RWSS facility – 1997-2007 .......................................... 26 Table 21: RWSS budget executed during 2001-2006 (in thousand of FCFA) ................. 27 Table 22: Budget execution rate by financing source 2001-2006 (in %) ......................... 28 Table 23: Financial allocations between admin/capital expenses of few ministries - 2001- 2006 (in %) ....................................................................................................................... 28 Table 24: RWSS Sector Budget by category of expenses 2001-2006 (in million FCFA) 29 Table 25: Public Expenditures in Goods and Services in ................................................. 30 Table 26: PN-AEPA total cost in rural and semi-urban areas 2007-2015........................ 33 Annexes Annexes 1: Total of water points built: 2001 - 2006 ........................................................ 37 Annexes 2:Hydrolics Personnel in the Drahrh (2004)...................................................... 38 Annexes 3: RWSS Budgetary Provisions by Nature – 2001-2006 (in Thousand FCFA) 39 Annexes 4: RWSS Budget 2001-2006.............................................................................. 40 Annexes 5:Trend of investment cost of modern wells in Burkina Faso ........................... 41 Annexes 6: Regional comparison of expenditures carried out in RWSS sector............... 42 Annexes 7: Institutional Context of Forecast and Execution of Public Expenditures...... 43 Annexes 8: Collect and Financial Data Processing .......................................................... 47 Annexes 9: Management of the Public Expenditure......................................................... 48 EXECUTIVE SUMMARY The present review aims at supporting efforts of the government in water and sanitation sector in rural and semi-urban areas. It carries out analysis of sector expenditures evolution during the period 2001-2006 and proposes recommendations likely to help better cope with the current and future challenges. The present review covers only public expenditures of the Ministry of Agriculture, Hydraulics and Halieutics Resources (MAHRH) to the profit of RWSS. Expenditures of other ministries (education, health), as well as projects of local development, from NGOs, and private individuals, for whom data are not available, are excluded. The review of public expenditure in RWSS shows that RWSS sector has experienced dramatic development and that performance in terms of creation of water points is relatively satisfactory during the 2001-2006 periods in Burkina Faso. The annual volume of new water points is about 1.950 points. Facilities realized during this period theoretically made it possible to supply more than three million Burkinabé and the rate of access of populations to drinking water was 60% in 2006, according to official sources. Objectives of the Strategic Framework of Fight against Poverty (CSPL-Cadre Stratégique contre la Pauvreté) and of the Millennium Development Goals (MDGs) aim at passing from an access rate to potable water of 60% to a rate of 80% in 2015. These objectives seem to be realistic and a National Program of Drinking Water Supply and Sanitation (PN- AEPA) was undertaken by the General Directorate of Water Resources (DGRE) of the MAHRH. A gradual Implementation of an approach-program indicates the possibility of achieving expected objectives. The roadmap of the DGRE (Direction Générale des Ressources en Eau) constitutes an important stage towards this approach. Many tools are being improved, notably in the realm of planning, follow-up and activities evaluation. New methods of financing the national program will help to reduce the costs of transaction and accelerate disbursements. Sanitation has become a priority of the government but much has to be done in order to reach the MDGs. The coverage rate in improved latrines varies from 1 to 20%, according to some sources. RWS sector has been for long time marginalized. It is only in 2007 that the government has integrated sanitation in the PN-AEPA (Programme National d’Approvisionnement en Eau Potable et d’Assainissement) and adopted a National Policy and Strategy of Sanitation (PSNA – Politique et Stratégie Nationale d’Aissinissement). RWSS analysis highlights several challenges. These challenges concern primarily: the availability of coherent data, obstacles slowing down the capacity of absorption and negatively affecting efficiency of expenditures, problems related to the sustainability of investments and equipments, huge gap between ambitions and reality on the ground with regard to devolution, decentralization and harmonization of interventions of main technical and financial partners which deserves to be reinforced. 1 1. Challenge of data collection Data collection on real achievements and budgetary expenditures constitutes a serious issue that the DGRE has not yet addressed. Data base of the National Inventory of Hydraulic facilities (INOH-Inventaire National des Ouvrages Hydrauliques) is not adequately used by the DGRE so as to transform it into a dynamic instrument allowing periodic actualizations of achievements on the ground and providing information on the evolution of the access rate to drinking water, the rate of facilities in activity and some other aspects. This is so important that introduction of Expenditure Medium Term Framework (EMTF) for the sector and of a budget-program, that the PN-AEPA strongly recommends, requires the availability of data on achievements of the previous year. In the field of public finance, expenditures relating to RWSS are executed by ministries other than the MAHRH, in particular the Ministries of basic Teaching and Elimination of illiteracy, Secondary Education and Scientific Research, and Health and Environment, where data are not available. Moreover, external financings (which constitute the essence of the sector financing) are not covered by the Integrated Channel of Expenditure (CID- Circuit Intégré des Dépenses) of the Department of Budget in the Ministry of Finances and Budget (MFB) whereas information is available at the Public Investment Plan (PIP). Wages are managed regionally by the Department of Pay in the MFB according to an integrated system, parallel with the CID. Data provided by various sources are not coherent and it has been extremely difficult to get coherent series over the period 2001-2006, in particular because of the change in sector supervision since 2002 from the Department of Environment to the MAHRH. Recommendation: It is thus desirable that the DRGE be given the responsibility of centralizing periodic collection (for example, quarterly or semi-annually) of data necessary to analysis of the physical and financial evolution of AEPA (Approvisionnement en Eau potable et Assainissement) sector. The installation of a system of expenditure computerization financed on external resources would be also desirable. That would help to have the possibility of interface with the CID and would facilitate the availability of quantified information on public expenditure of investment and their transparency. 2. Effectiveness and efficiency of RWS sector If the rate of broken down facilities remains high, which indicates that effectiveness of public expenditure in the sector is low, other aspects seem to show a remarkable efficiency. The number of water points built was on average 1.950 during the period 2001-2006 whereas in Mali and Ghana, it was respectively 750 and 1.250. It has increased during the period and, in 2006, it reached 2.500. Geographical distribution of these points was globally equitable, compared to the regional distribution of population. Performance in terms of physical achievements has improved along with the rise of financial resources spent, indicating a link between the number of facilities constructed and the increase in the budgetary expenditure of the sector during the period. Investment cost per capita served in the sector during the period shows a greater efficiency in Burkina Faso compared to other countries such as Ghana and Mali. Expenditure per capita was on average $35 in Burkina Faso, $51 in Ghana, and $90 in Mali. The unit cost of a borehole with hand pump is lower in Burkina Faso than in Mali but higher in Ghana, a country with access to the sea and where the number of national and international suppliers is larger. 2 Recommendation: A fiercer competition between suppliers of goods and services in Burkina Faso should contribute to a reduction, if not a stabilization of unit costs. 3. Inadequate Budget Programming The current budgetary programming of RWSS does not ensure the mobilization of resources necessary to meet PN-AEPA objectives. The CDMT (Cadre de Dépenses à Moyen Terme) prepared by the MFB is split by ministry and not by sector. There are three sectors (agriculture, hydraulics and halieutics resources) in the MAHRH case. Transforming CDMT of the MAHRH into sectors would facilitate the process of the triennial budget-program of the DGRE and annual budgetary arbitrations with services of the MFB. Coherence would be thus established between government objectives expressed in the CSPL (Cadre Stratégique de Lutte contre la Pauvreté) in the matter of water, the PN-AEPA, and annual budget allocations of the AEPA sector. Recommendation: The CDMT of MAHRH should be done per sector in order to translate governmental priorities into annual budgets allocated to the AEPA sector. 4. A limited absorption capacity The execution capacity of budgetary resources allocated to the sector is low. Sector development is not hampered by the lack of financial resources but rather by various obstacles of its absorptive capacity at the central, regional and local levels. The rate of weak budget execution was about 50, 3% during the period 2001-2006. The lowest rate (22, 6%) was recorded in 2002; and the highest in 2006 (62, 2%). The execution rate of expenditures financed on internal resources is on average 79, 8% in Burkina Faso and 98, 5% in Mali. The rate of execution on external resources is weaker: 46, 1 % on average in Burkina Faso and 59, 5% in Mali. Per source of financing, the execution rate of expenditures on internal resources in AEPA sector was on average 79, 8% during the period, while that of the budget of the State was 93%. This moderate performance is partly explained by the extreme slowness of procurement and the institutional weaknesses of the DGRE, (in particular the lack of human resources in both the central and regional level). It is also explained by obvious imbalance between current expenses and capital expenditures. Current operation expenses, entirely financed on internal resources, represent on average only 3, 1% of public expenditures during the period. This rate decreased from 4, 7% in 2002 to 1, and 2% in 2006. Moreover, they are primarily made up of wages (71% of current expenses). The share of goods and services, i.e. expenditure on vehicles, computers and office equipment, were, on average, 0,2% of the total expenditures during the period (decreasing from 0.3% in 2001 to 0,1% in 2006); what is absolutely trivial. Services in central, regional and local level cannot function normally with such few resources. This hinders the capabilities of the government to effectively assume its responsibilities in the sector, notably in terms of adequate evaluation and follow-up of achievements, support to equipments sustainability and to local communities. Recommendation: A strong increase (scale of 5 to 8) ordinary expenses allocations in RWSS sector constitutes an urgency of first order. 3 RWSS sector lacks qualified personnel at the central level as well as at the decentralized one. The PN-AEPA has among its priorities, reinforcement of the personnel in quality and a quantity. An ongoing study will have to identify functions, positions and profiles and to appreciate existing competences before proposing an expansion plan for human resources of the DGRE and Regional Directions of Agriculture, Hydraulics and Halieutics Resources (DRAHRH). Moreover, within the framework of the PN-AEPA and the development of its triennial budget- program, the DGRE will have to reinforce its sectoral and budgetary programming capacities. This programming will have to be also reflected in the development of a CDMT and a budget- program in the MAHRH. Recommendation: The government should reinforce human capacities of the DGRE and the MAHRH with regard to sectoral and budgetary programming. 5. The challenge of investments sustainability The current management of RWSS facilities is not effective. The 35% exceeding rate of broken down facilities constitutes an enormous waste of public resources. For AEPS/AEP (Adduction d’Eau Potable Simplifiée) facilities, the rate of inactivity amounts to 33% whereas in Mali, it is about 13%. In spite of some interesting results in certain areas of the country in terms of delegated management of facilities and implication of the private sector, the majority of facilities are under a Community management type whose effectiveness is very limited. It is necessary to introduce on a large scale, new forms of management of those facilities, based on new models defined in collaboration with stakeholders. Recommendation: The investments’ follow-up of and the support to communes and recipients directly responsible for the maintenance of facilities will have to be reinforced considerably. The main missions of the State should be ensured by a substantial increase in recurring expenses and, particularly in operating expenditures. 6. The devolution - decentralization gap In the field of ambitions, the law of December 24, 2004 related to the General Code of Local Authorities (CGCT- Code General des Collectivités Territoriales) transfers, since 2009 to local communities, competences covering all the management of RWSS sector, except for the regulation. In reality, rural communes remain weak on human, financial and logistics resources to carry out their responsibilities. Decentralization will function only if, preliminarily, devolution is successful. However, the DRAHRH are stripped in human, financial and logistic resources. Due to the lack of resources, these structures, which have a paramount role to play in meeting MDGs and PN-AEPA’s objectives, cannot fulfill their missions of follow-up of activities and achievements of the sector, of follow-up of the functionality of facilities, and of council to local communities. Moreover, there is no hierarchical link between the DGRE and the DRAHRH, given their belonging to the MAHRH and the fact that delimitation of responsibilities between various sectors of the ministry is unclear. It should be noted that since 2007, DRAHRH profit from a delegation of allocations for goods and services, which constitutes a step, though modest, in the process of devolution. Recommendation: Reinforcement of DRAHRHs and adequate budgetary resources allocation for operating expenditures become impossible to circumvent if objectives of the PN-AEPA and MDGs must be reached in a decentralized context. 4 A new type of partnership is to be set up and to develop between the State, local communities and the private sector. In this partnership, central and regional governments provide effective support to local communities’ services in the field of planning, projects formulation, implementation, and management of facilities by associating the private sector. The dialogue, which is established in such a process, supports and facilitates competences reinforcement of regional and communal councils while increasing their accountability vis-à-vis of populations which have elected them. It also enables the State to better define its role of council, assistance and control prescribed by the CGCT. A handbook of work procedures, elaborated in collaboration with local communities, would ensure reinforcement of the decentralization process in RWSS sector. Recommendation: The DGRE should prepare a handbook of work procedures between centralized and decentralized sector services with the collaboration of local communities in the formulation, implementation, and management of RWSS programs in rural areas, in the perspective of a communal control of the sector. Recommendation: The government should also engage in devolution of management of procurement in RWSS sector. The experiment undertaken in the center-east DRAHRH, where most (public offers, opening of folds, attribution of projects) is locally done, could be spread to other areas of the country. 7. Harmonization of the PTF A greater harmonization of PTF (Technical and Financial Partners) participation to RWSS sector’s achievements is desirable. The Bank, in close cooperation with Burkinabé authorities and within the framework of Paris declaration in March 2005 on the effectiveness of development aid, can play an important role in the implementation of this harmonization. Such a harmonization can integrate not only co-financings but also a better dialogue on the availability of data, procurement, sector support, evaluation and follow-up of programs and projects, audit and other aspects. This harmonization would reduce procedures actually too long, accelerate disbursements, reduce transaction costs and, more generally, facilitate the design and realization of sector’s projects. The Unified Intervention Framework (CUI-Cadre Unifié d’Intervention), defined by the PN-AEPA as a set of tools and rules binding all actors (State, communes, populations, ONGs, private sector and PTF), should facilitate adoption of these recommendations. 8. Sanitation deserves a greater attention Sanitation has been getting minor attention and support in RWSS sector. Data of this under-sector are even more difficult to collect and more fragmentary than those of drinking water. According to the DGRE, coverage rate has been 10% in rural areas in 2005. Approximately only 5% of RWSS investments would be devoted to sanitation. The lack of sanitation and hygiene has a considerable impact on mass diseases such as respiratory infections, diarrhea, and malaria and. The PN-AEPA aims at providing an adequate access to sanitation to 5, 7 million people, which will increase the coverage rate to 54% in 2015. The government has also 5 adopted the PSNA document in April 2007. Investments planned over the 2007-2015 period are about 64, 4 billion FCFA of which 37, 8 billion concerning the ongoing programs. The PSNA also envisages putting in place a program intended to promote, sensitize and educate populations so as to enable them to adhere and take ownership of the program, invest in sanitation facilities, exploit them, and ensure their maintenance and rehabilitation. A specialized sanitation service was created within the DGRE in January 2007 but it has only six agents, including the Director. There is no specialized sanitation agent in DRAHRHs. This lack of human resources in both central and regional governmental departments undermines efforts deployed to reach objectives of the sub-sector. 6 I INTRODUCTION The present review aims at supporting efforts of the government in RWSS sector. It carries out analysis of sector expenditures evolution during the 2001-2006 periods and proposes some measures likely to help sectors actors to better cope with the current and future challenges. The present review covers only public expenditures of the Ministry of Agriculture, Hydraulics and the Halieutics Resources (MAHRH with regard to RWSS sector. Expenditures of other ministries (Education, Health), as well as projects of local development, from NGOs, and individuals, for whom data are not available, are excluded. Review of public expenditures in RWSS sector shows substantial development and performance in terms of water points creation during the indicated period in Burkina Faso. Annual volume of new water points was about 1.950. Water facilities constructed during this period have theoretically made it possible to supply more than three million Burkinabé and population access rate to drinking water was 60% in 2006, according to official sources. Objectives of the Strategic Framework of Fight against Poverty (CSPL) and the Millennium Development Goals (MDGs) aims at passing from a water access rate of 60% to 80% in 2015. These objectives seem to be realistic and a National Program of Drinking Water Supply and Sanitation (PN-AEPA) was undertaken by the Department of Water Resources (DGRE) of the MAHRH. Implementation of a gradual programming approach indicates that objectives will be achieved. The roadmap of the DGRE constitutes an important element of this approach. Many tools are being improved, notably in the planning and activities’ follow up. New methods of financing the national program will reduce transaction costs and accelerate disbursements. Sanitation has been until now the RWSS sector’s underdog. Only 5% of investments of the sector are allotted to fields. The coverage rate in improved latrines varies from 1 to 20%, according to governmental sources. With the adoption of the PN-AEPA in 2007 and the formulation of a National Sanitation Policy and Strategy (PSNA), sanitation has become a governmental priority. The government’s program aims at providing improved sanitation facilities to 5, 7 million people. This would help the coverage rate to grow from 10% in 2005 to 54% in 2015. But much remains to be done in order to reach the MDGs. Analysis of the RWSS sector highlights several challenges. These challenges concern primarily: the availability of coherent data, absorption capacity impediments and expenditure’s efficiency, equipments and investments’ sustainability, enormous gap between ambitions and reality with regard to devolution, decentralization and harmonization of interventions of main technical and financial partners (PTF) which deserves to be reinforced. Analysis, main conclusions and recommendations of the review were discussed with the AEPA sector’s actors (Ministry of Finances and Budget (MFB) and the other technical and financial partners (PTF). Discussions took place during a final workshop held on January 22, 2008 in Ouagadougou. Recommendations will be integrated in the DGRE roadmap and possibly in the PAP-CSLP 2008-2010 matrix. 7 II DATA COLLECTION Data acquisition on physical achievements and public expenditure poses a serious problem which the DGRE has not yet seriously addressed. In the field of palpable achievements, the INOH data base are not adequately used by the DGRE so as to transform it into a dynamic instrument allowing periodic actualizations of achievements on the ground and provide information on water access rate evolution, on the proportion of water facilities in activity, and on other aspects. The PN-AEPA strongly recommends introduction of a sector Mid-term Expenditure framework (CDMT) and a budget-program, which requires availability of data on the previous year achievements. In the field of public finance, expenditures relating to RWSS sector are managed by ministries other than the MAHRH, in particular Ministries for basic Education and Elimination of illiteracy, Secondary Education and Scientific Research, Health and Environment, on which data are not available. Moreover, external financings (which constitute the greater part of the sector’s financing) are not covered by the expenditure integrated line (CID- Circuit Intégré de la Dépense) of the Department of budget of the Ministry of Finances and Budget (MFB) whereas information is available at the Public Investment Plan (PIP). Data provided by various sources are not coherent and it was extremely difficult to have coherent series over the studied period, notably due to the sector supervision transfer from the Department of Environment to the MAHRH. III STATE Of ACCESS TO DRINKING WATER AND SANITATION FACILITIES 3.1 Delimitation between rural/semi-urban and urban areas. There is no consensus on the classification of rural, semi-urban and urban areas among those in charge of service planning in Burkina Faso. Differences in concept are observed between the National Institute of the Statistics and Demography (INSD), the Department of Planning (DAT) and the DGRE. According to the General Code of Local Authorities law (CGCT), administrative organization of Burkina Faso comprises regions (13), provinces (45), departments (350), urban communes (49) classified in communal sectors, rural communes (302) made up of villages (approximately 8.902). However from 2005, the DGRE adopted another planning in the framework of national inventory of water points and formulation of the national program of drinking water supply and sanitation by 2015 (PN-AEPA 2015). Units of planning retained by WSS sector are (i) villages, (ii) rural communes (at least 3.500 inhabitants), and (iii) urban district. Concepts of rural, semi-urban and urban were not defined in this new planning 1 . However, these notions used in the final report of the national inventory of water points in 2005 allow a classification of zones. Thus, the rural and semi-urban areas would concern villages and rural communes while an urban area represents an urban commune. On this basis, in 2005, population in rural and semi-urban areas amounted respectively to 9, 85 million (76 %) and 3, 12 million (24 %) inhabitants 2 . 1 Document of standards, criteria and indicators of access to potable water and sanitation in Burkina Faso. DGRE. July 2006. 2 A general census of the population was carried out in 2006, but because data are not yet available, the figures used by the DGRE will be maintained for the present review. 8 3.2 Standards and technologies used Standards of equipments used in drinking water supply have evolved during the past years, in particular with regard to the distance and accessibility. From 2005, standards in rural hydraulics evolved from a water source for 500 inhabitants to a water source for 300 inhabitants at a maximum bearing distance of 500 m for specific water consumption of 20 l/d/h. In July 2006, the government adopted new definitions of standards, criteria and indicators of access to drinking water and sanitation. Standards thus defined cover several aspects such as administrative distribution, quality of water and rejections, specific consumption, distance, accessibility and financial contribution. The maximum bearing distance in villages has changed from 500 m to 1000 m so as to follow the world standards retained within the framework of MDGs. The new standards are consigned in table No 1 hereafter. Table 1: Equipment Standards Parameters Norms Village Villages and Urban district Communes with 3500 Quality inhabitants Directive OMS Directive OMS Directive OMS Water specific 20 l/d/inhabitant 20 l/d/inhabitant Water source : 20 consumption l/d/inhabitant PEM at less than BF and source of BF and PDC at less than Distance 1000 m of Collective 500 m of housing housing distribution at less than 500 m of housing 1 PEM for 300 1 BF/500 inhabitants 1 BF/1000 inhabitants 1 Accessibility inhabitants 1 1 Source of Source of Collective PEM/village of Collective distribution/100 less than 300 distribution/100 inhabitants 1 BP for 10 inhabitants inhabitants 1 BP 10 inhabitants inhabitants Source: DGRE (November 2006): National Program of water and sanitation supply by 2015- Standards adopted on autonomous sanitation are presented hereafter: Table 2: Autonomous sanitation equipment standards individual School Other Public area Latrines 10 people/ latrine Blocks of latrines at a By blocks of 6 to 8 rate of a latrine cabin latrines per class Source: DGRE (November 2006): National Program of Drinking Water Supply and of sanitation at horizon 2015- Program document 9 3.3 Access to drinking water in rural and semi-urban areas 3.3.1 Accesses to drinking water in 2005 The access rate to drinking water in rural and semi-urban areas was estimated at 60 % in 2005 3 . According to other estimates, it would be 50 % if the spatial distribution of water points compared to the users as well as the over-equipment in water facilities in a certain number of villages 4 is taken into account. The rate of national access in 2005 presents great variations between areas. Indeed, this one varies from 36 % in Sahel to 74 % in the Center as shown in table No 3 below Table 3: Access rate to potable water (rural and semi-urban area) - 2005 80.0 74.0 71.0 70.0 69.0 70.0 62.0 60.0 58.0 57.0 56.0 60.0 54.0 47.0 47.0 46.0 50.0 40.0 36.0 30.0 20.0 10.0 0.0 l st re st d es l d st t l s d un ra he Es ta in or Su or ue -E ue nt ad To nt ho ss Sa -N N Ce O re O sc Ce re Ba ou - d- nt re nt Ca re M s- Ce nt u Su Ce nt ea t Ce au Ce at H Pl Source: Data base INOH, DGRE According to data of the national inventory carried out in 2005, 82 % of the served population is supplied by boreholes equipped pumps, 12 % by modern wells and 6 % by a terminal water fountain or an autonomous water station. According to the INSD (National Institute of Statistics and Demography) investigations, the access rate to drinking water in rural areas increased by 7, 3 % over the 3 Source: Data base of the National Inventory of the Water facilities. It is advisable to distinguish the cover rate (also called rate of equipment) from the rate of access. The cover rate is based on the number of people served by drinking water utility without taking into account aspects like outdistances between the consumer and the utility, the over-equipment in a zone etc. The rate of access implies the taking into account of these aspects and is more complicated to calculate and requires the use of SIG tool to obtain a certain level of precision. 4 According to an estimate, the average level of over-equipment would be very important. An assessment made in the 5.151 villages (64 % of the villages on the whole) where the coverage rate is 100 % shows a state of over-equipment of approximately 50 %.: Mission 1: Sector situation. Development of the National Program of Drinking Water and Sanitation Supply by 2015. Volume 1. DGRE. May 2006 10 period 1999-2003, equaling an annual average increase of 1, and 5 %. It is to be noticed that the share of the population supplied with boreholes has increased by more than 11%, while the population using modern wells as source of water supply has decreased by 3,7 %. Table 4: Evolution of potable water access rate - 1994-2003 (INSD) 5 en % 19941) 19982) 20033) Total Rural Total Rural Total Borehole 25,6 37,9 30,8 53,6 54,4 Water Hydrant 17,4 4,8 15,6 Tap 0,2 5,5 0,3 6,1 Wells 47,5 14 11,4 10,3 8,7 Sub-total drinking water 90,5 56,9 63,3 64,2 69,2 Traditional wells 30,4 26,7 River 9,2 12,4 9,7 35,5 30,5 Other 0,3 0,3 0,3 0,3 0,2 Sub-total non-drinking water 9,5 43,1 36,7 35,8 30,7 1) Source: INSD (Février 1996): Analysis of results of the priority investigation on the living conditions of households in 1994- First edition 2) Source: INSD (1998): Burkinabé Inquiry on the living conditions of households (EBCVM) 3) Source: INSD (2003): Burkinabé Inquiry on the living conditions of households (EBCVM) 3.3.2 Access evolution to drinking water from 2001 to 2006 Water points built during the period 2001-2006 have theoretically supplied water to more than 3 million Burkinabé. The number of annually served people fluctuated from 470.000 to 615.000 with an annual average of approximately 550.000. The number of theoretically served people constitutes a considerable effort since the total population in rural and semi-rural areas increased by approximately 1, 3 million during the same period. The achievements thus contributed in a substantial way to increase water coverage rate in Burkina Faso. 5 In the 1994 investigation of the INSD, distinction is not made between the well and the traditional well and between the rural and the urban area. 11 Table 5: Population served annually in potable water 2001 - 2006 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2001 2002 2003 2004 2005 2006 Source: Data generated on the basis of national inventory of water points. 2005 Drinking water supplies were distributed equitably according to the population distribution by area. This distribution (see Annex 1) corresponds roughly to the pattern of settlement which seems to indicate that investments carried out apparently did not contribute to decrease regional disparities in terms of access rate to drinking water. 3.3.3 Execution capacity of water points from 2001 to 2006 The performance of Burkina Faso in terms of creation of water points is relatively good. During the period 2001-2006, the annual volume of new water points built/rehabilitated was 1.950 equivalent water points, all sources of financing put together (ministry in charge of water, other official partners, NGOs and other organizations of the civil society). On average, 1.700 boreholes equipped with hand pumps, modern wells and 135 terminals water fountains were built annually. A limited number of rehabilitations are added to these figures. Supposing that 70 % of achievements were made by projects of the MAHRH/DGRE, the annual average number of water points built by the ministry in charge of water supply was 1.350 during the period 2001-2006 including 1.770 in 2006. Forecast figures of the DGRE for 2007 indicate 2.004 new boreholes, 691 rehabilitations, 125 modern wells and 73 new simplified pipes drinkable water (AEPS). 12 Table 6: Modern water wells built and rehabilitated from 2001 to 20066 300 250 200 150 100 500 0 2001 2002 2003 2004 2005 2006 BF realized PMH & wells Total PEM realized Source: Data base INOH. DGRE. 3.3.4 Functionality of water points The rate of broken down hand pumps (PMH) was about 23 % in 2005 7 . There are 7 % of abandoned pumps (mainly because of the over-equipment in certain areas) and 16 % of broken down pumps (see table No 8 below). Studies carried out on the operating condition of hand pumps show that 40 % of the pumps have more than 10 years of age, and that the age is not necessarily a critical factor for the functionality, as 75 % of the pumps which are more than 15 years old are still active. In the past, several initiatives were taken to introduce simplified contracts of maintenance services provision for the PMH between private operators (repairing craftsmen) and boards of management of the water source. These maintenance contracts of the PMH implied maintenance in full coverage 8 , but these arrangements could not be maintained, mainly because of non payment of the contribution by the Board of Management of the Water Source at the time when water points faced few breakdowns. Studies show that the rate of well operating pumps seems to be maintained mainly at the current level thanks to the programs of replacement of pumps that have taken place during the last 10 years. According to the National Inventory of Water facilities (INOH) of the DGRE, several factors contribute to the pumps inactivity notably: y Maladjustment of hand pumps in hydro geological areas with static level of water (aquifers of the plain of Gondo in the Northern area); y Absence of an effective maintenance service or abandonment of the brand name by manufacturers (Duba, UPM, Pulsated, Moyno); y Distance between pumps and habitat zones; 6 In order to make comparable the various achievements, water points were converted into PEM according to the following model: 1 BF = 2 PEM 7 Source: data base: INOH MAHRH/DGRE 8 Source: Study 2. Reform Program Implementation. Final report. September 2006 13 y Boreholes technically badly constructed or not conformed to equipment criterion; y Lack of effectiveness of the Board of management; y Bad quality of water. Table 7: Rate of breakdowns of hand pumps (2005) 60.0% 50.0% 45.7% 40.0% 32.2% 29.2% 30.0% 24.5% 25.3% 23.3% 21.9% 22.1% 22.1% 16.7% 18.6% 18.8% 20.0% 11.5% 7.4% 10.0% 0.0% ntral houn e S ud e t est l rd t l ades s Nord Est Sahe Tota re Es Oues in Centr e No re Ou Bass Casc e Mou Centr Cent au C Sud Centr Hauts Cent Plate Source: Base de données INOH. A great part of drinkable water conveyance simplified systems (AEPS) are broken down. According to the national inventory of water points realized in 2005 9 , 33 % of AEPS were broken down. However according to a survey carried out by the implementation program of the Reform over 91 systems in 13 provinces, the rate of the AEPS breakdown is 65 %. An analysis of the functionality of water points on the basis of data from INOH shows a rate of non functionality of 28, 5 % (see table 9). Considerable variations are noted between various areas; from 7 % in the Cascades to 67 % in the Mid-west. The state of functionality of AEPS varies according to the management modes and the types of pumping systems. According to the DGRE, the failure rate which is relatively low in certain areas is explained by the presence of external operators (ONG or private operator) in the management and maintenance of water points. It is the case, for example, in the regions of Cascades, Top-Basins and of Center-East. In other areas where the failure rate is important, the AEPS do not profit from a support of a private or associative operator. It is the case for example, of the water points in the Loop of Mouhoun, South-west, Center-North and the Sahel. Finally, the very great number of broken down AEPS in North and the Mid-west are mainly solar stations constructed within the framework of the Regional Program Solar Phase I, whose solar panels were stolen. The other reasons evoked to justify the interruption of the service are mechanical or electromechanical failures due to a lack of thermal systems maintenance. Sustainability of service is also affected by inertia in of the costs covering system. The price of water is fixed by projects at the launching time of AEPS systems in order to cover the current extension and renewal running costs of equipment. The price varies between 300 and 500 FCFA/m3. A change of price is difficult to be accepted by users. Also, when the price of water becomes lower than its distribution and production cost, that inevitably leads to a 9 2005 National inventory of Hydraulic facilities. Final report: Principal results. DGIRH. May 2006 14 progressive deterioration of the quality of service and infrastructures, or even abandonment of some systems 10 . A reform program of the management system of AEP infrastructures is in place to rectify this situation. Implementation of the program of Reform financed by AFD envisages a management delegation of simple water points through a contract signed between the commune and one or more private operators accredited at the regional level for the supply, maintenance and follow-up of the hand pumps. It also envisages development of models of delegated management which would allow AEPS to use professional employees in majority. A hundred systems AEPS will be concerned in 2008. Table 8: Non functionality rate of water points (2005) 70,0% 6 3 ,4 % 60,0% 51,5% 4 8 ,1% 50,0% 3 7,6 % 40,0% 3 5,8 % 3 3 ,3 % 3 3 ,6 % 2 8 ,5% 30,0% 17,3 % 18 ,5% 20,0% 15,4 % 7,4 % 9 ,3 % 10,0% 6 ,8 % 0,0% t -B s d s Ce l t d es Su un st tre e l t d e Es l sin Su Es ta ra or h ad or Ce Ou ue ho To Sa n N nt as - -N sc tre Ce O tre d- ou Ca - re n tre n M Ce nt ts Ce u n au ea Ce at H Pl The current management of water points is not effective. The rate of AEPS facilities broken down exceeds 35%, and constitutes an enormous waste of public resources. For AEPS/AEP facilities, the rate of inactivity amounts to 33% whereas in Mali, it is only 13%. In spite of some interesting results in few areas of the country with regard to delegated management of facilities and implication of the private sector, the majority of water points remain under the community type management, whose effectiveness is very limited. It is necessary to introduce on a large scale new forms of water points management, according to new models which are to be defined with stakeholders. The follow-up of investments, and support to communes and recipients directly responsible for the maintenance of facilities will have to be reinforced considerably. Governmental responsibilities should be ensured by a substantial increase of operating expenses of services. 10 It should be noted that there is an ongoing DGRE study intended to determine an affordable price of water in rural and semi urban areas as well as incentives likely to promote small and average private operators participation in the management of facilities. 15 3.4 Sanitation in rural and semi-urban areas The coverage rate in improved latrines facilities in rural area varies from 1 to 20 % according to sources'. Table No 10 below indicates a coverage rate lower than 1 % for improved latrines according to the Ministry of Health. It should be noted also the absence of very precise definition of standards relating to latrines with regard to health. According to the DGRE, real coverage rate would be approximately 10 % in rural area given that part of the traditional existing latrines, whose current rate is estimated to 20 % of the households, satisfies sustainability 11 , effectiveness use, and safety criteria. Table 9: Sanitation coverage in rural area – in %12 Evacuation of excreta 1998 2003 Drive out systems 0,1 0,1 Latrines with ventilated pit 0,2 0,1 Ordinary Latrines 13,1 20,1 In nature 84,5 79,5 others 2,2 0,2 The lack of sanitation and hygiene has a considerable negative impact. According to Statistics of the Ministry of Health, among the 10 principal reasons for medical consultation in 2001, three pathologies related to the lack of collective or individual hygiene came in first position (acute respiratory infections, diarrhea and malaria diseases). These three diseases represent more than 50% of the reasons for medical consultation. Epidemic of cholera, which is a disease related to the lack of hygiene, prevails in a cyclic way since 1984 until 2001 as the annual number of infected people varies between 300 to 1.500. UNICEF studies indicate that the risk for a child to be hospitalized is 30 to 50% higher when the child does not have adequate resources for excreta evacuation. This stresses the importance of these aspects of healthiness. Sanitation and hygiene promotion have remained marginalized for a very long time, but the situation is evolving positively. These fields owe their current improvement to the strategic plans for sanitation put in place in large cities and to the programs aimed at supporting communes’ development. The majority of projects of drinking water supply in rural area comprise a sanitation aspect, but this latter remains rather marginal 13 . The Council of Ministers has finally adopted a National Sanitation Policy and Strategy (PSNA) in July 2007. Programs to develop latrines have until now used various modes of financing going from the absence of subsidy to a total exemption from payment of sanitation facilities. With regard to the subsidy of autonomous drainage systems in rural area, the government within the framework of the PN-AEPA decided to choose a subsidy of 90 % to stimulate the demand. This decision is not supported by all technical and financial partners. Certain PTF have little favor of subsidies. It is the case, for example, of the Danish Assistance which has until now maintained a policy of no- subsidy for autonomous sanitation facilities. 11 PN-AEPA 1015. Document Program. DGRE. November 2006. 12 Sources: Ministry of Health: Statistics Directory 2004. DEP/Health. & INSD: results analysis of burkinabé households living conditions investigation in 2003. 13 According to an estimate, 5 % of the financings allocated to the AEPA in rural and semi-urban areas would be devoted to sanitation. Source: Burkina Faso - Inventory and prospects for water and sanitation. The International Secretariat of Water. August 2004 16 IV SECTOR EFFICIENCY AND EFFECTIVENESS 4.1 Execution capacity of AEP The capacity of execution of investments expressed in terms of volume of facilities built over the period 2001-2006 is considerable in Burkina. It is also noted that the volume of facilities carried out has continuously increased year by year over the period under review and has reached 2.500 in 2006. Table 10: Ouvrages réalisés 2001-2006 Annual average water points built Rural and semi-urban population : (2001-2006) 2006 Burkina Faso 1.950 9,85 millions Mali 750 9,5 millions Ghana 1.250 + 60 AEPS 14,4 millions Note: Water points built in Burkina Faso include achievements of actors other than the ministry in charge of water. For comparison purpose with similar countries, it will be necessary to increase the volume carried out from 20 to 25 %. The sector performance in terms of physical achievements increased at the same rate as the increase of financial resources allocated to the sector. There is thus a correlation between financial resources increase and the number of facilities constructed during the studied period. Table 11: Comparison of expenditure to the number of water points constructed 18,000,000 3000 Number of facilities 16,000,000 in thousand FCFA 2500 14,000,000 12,000,000 2000 realized 10,000,000 1500 8,000,000 6,000,000 1000 4,000,000 500 2,000,000 0 0 2001 2002 2003 2004 2005 2006 4.2 Execution capacity of allocated financial resources The capacity of implementation of the budget is low. There is a huge difference between the execution internal and external resources. A comparison with Ghana and Mali shows that disbursement of external funds constitutes an important problem in all three countries 17 Table 12: Rate of budgets execution (2001-2006) In % Internal resources External resources Burkina Faso 79,8 46,1 Ghana - 44,2 Mali 98,5 59,5 4.3 Per capita investment cost Cost per capita served in RWSS sector between 2001-2006 shows a great efficiency in Burkina compared to other countries, according to data available. The high number of facilities constructed in Burkina from 2001 to 2006 in comparison with Ghana and Mali highlights a low cost per capita when dividing the overheads (operating costs, transaction costs, coordination expenses etc.) by a greater number of facilities and people served. Table 13: investment cost per capita in the AEPA sector (2001-2006) Expenditure (Investment, animation, adm. expenses Population served Cost per capita in US$ etc..) Burkina Faso 91.700.000 2.625.000 35 Ghana 133.800.000 2.600.000 51 Mali 103.100.000 1.150.000 90 Note: The table takes only into account, the population served by the ministry charged with water (75%). 4.4 Unit cost of AEP investments The average cost of borehole with hand pumps in Burkina is lower than that in Mali but higher than the one in Ghana. That could be explained by the relatively important number of water points constructed annually in Burkina Faso (approximately three times more than in Mali), which involves a phenomenon of economies of scale. Compared to Ghana, the number of suppliers of national and international goods and services are less important; Table 14: unit cost of AEP investments per capita (in US$) Borehole with hand Modern water pumps wells AES/AEP Burkina Faso 36 26 Mali 14 42 (56) 56 (75) 39/83 Ghana 22 20 65/50 The average cost of a modern well of 20 ml was approximately 3, 8 million FCFA in 2006 and 5, 2 million FCFA for a borehole with hand pump. The trend of investment cost in boreholes with hand pumps and water modern wells is shown in Appendix 5. Globally, the cost of boreholes with hand pumps and water modern wells has increased respectively about 2 and 8.8 percent over the period 2000-2005. 14 Figures in bracket indicate the average investment cost per capita for 300 inhab/water point in Burkina Faso. The standard in Mali is 400 inhab/water point. 18 4.5 Regional equity in the access rate evolution to drinking water Achievements in potable water supply facilities were equitably distributed according to the pattern of settlement by region. Investments carried out thus did not contribute to decrease the regional disparities in terms of rate of access to drinking water but did not worsen them either. 4.6 The share of sanitation and hygiene promotion in the total budget If it is difficult to measure the impact of water and sanitation programs on health, it is recognized that the combination of drinking water, improved sanitation services and hygiene condition improvement lead to positive impact on human lives. Analysis of RWSS projects in other countries has shown that the share devoted to these aspects exceeds seldom 10 % of the total budgets. From this point of view, it is encouraging that the PN-AEPA holds 17 % of the total budget during the period 2007-2015 for sanitation services. However, the 2008-2010 budget program of the DGRE envisages primarily construction of water points and relatively little for the promotion of sector actors’ awareness. 4.7 Functionality of facilities The rate of broken down sector facilities is considerable, in particular for the AEPS, which attests low effectiveness of expenditure. Evaluation of investments and support to communes and recipients which are directly responsible for the maintenance of water points deserves more attention. The level of operating expenditures does not enable the administration to carry out regular follow-up on the ground. Table 15: Rate of broken down facilities (2005/2006) in % PMH AEPS/AEP Burkina Faso 23 33 Mali 34 13 Ghana 20-30 (?) 20-30 (?) If the rate of broken down facilities remains high, which indicates low effectiveness of public expenditures in the sector, other aspects seem to show a remarkable efficiency. The number of water points constructed was on average 1.950 during the period 2001-2006 whereas in Mali, it was about 750 and 1.250in Ghana. It has increased year by year during the period to reach 2.500 in 2006. Geographical distribution of these points was globally equitable compared to the regional distribution of population. Performance in terms of physical achievements has relatively improved according to the increase of financial resources, indicating a correlation between the number of facilities constructed and the raise of budgetary expenditures to the sector during the period. The per capita capital cost served in the sector during the period shows a greater efficiency in Burkina Faso compared to other countries such as Ghana and Mali. Expenditure Per capita was on average $ 35 in Burkina Faso, $ 51 in Ghana and $ 90 in Mali. The unit cost of a borehole with hand pump is lower in Burkina Faso than in Mali but higher in Ghana, a country with access to the sea where the number of national and international suppliers is larger. A greater competition between suppliers of goods and services in Burkina Faso should contribute to a reduction, if not a stabilization of the unit costs. 19 V STRATEGIC FRAMEWORK OF RWSS SECTOR Drinking water and sanitation sector were the subject of national strategies adopted by the government respectively in 1996 and 1998 and implemented through large programs, among which, the Reform of Maintenance System of Hydraulic Infrastructures in Rural and Semi-urban areas, the Program of Support to the Development of Water and Sanitation Sector (PADSEA II) and the Regional Solar Program phase 2. Strategic orientations are presented afterwards. Frame No 1: Strategic orientations for the supply drinking water (i) Complete support to the maintenance of water infrastructures by stakeholders, within the framework of an inciting tax policy ii) ) Priority to the rehabilitation and consolidation of water infrastructures with the aim of showing a profit or developing investments carried out iii) Seek lower maintenance cost and sustainability of facilities (AEP, sanitation, networks inspection) iv) Set up an inspection network of the quality of water v) Support the development of the private sector vi) Reinforce the information system on the AEP vii) Promote activities of women viii) Promote coordination ix) Develop human resources Source: Policy and strategies as regards water. Ministry of Water and Environment. July 1998. However, these strategies have not settled the major issues of the sector. Main actions identified in 1998 have been implemented: (i) creation of an environment allowing a delegation of the management of equipments; (ii) harmonization of recipients contribution of initial investment; (iii) recovery of maintenance costs and renewal of pumps; (iv) actualization of the information system; and (v) insufficiency of communication and information exchange between the various actors. In 2005, the government of Burkina Faso conceived and adopted the PN-AEPA by 2015 in order to meet the MGDs in water and sanitation sector. The PN-AEPA constitutes an innovation and is directed towards a program approach. The national strategy of sanitation adopted in 1996 extended the sanitation concept to other fields, in particular domestic worn water and excreta, rain water, municipal solid waste, industrial, hospital and toxic waste. The principal repercussions of the national strategy in the field of worn water and excreta include diversification of technological supplies (water points), promotion of private companies of draining mud collection, conception of six (6) sanitation strategic plans (Ouagadougou, Bobo-Dioulasso, Koudougou, Fada Gourma, Banfora, Ouahigouya), development of an organic pollutants elimination plan and management of oil plan and finally, creation of funds intended to get rid of industrial pollution. A new policy and national sanitation strategy have been just adopted by the government in 2007. This strategy is based on principles of information, education and communication, participation, prevention and precaution, pollutant payer, and subsidiarity. The national strategy introduces new sanitation sub-division such as liquid waste, rain water, solid waste and gas waste. 20 5.1 Legal Framework The law relating to the management of water stipulates that water is a common element of the nation Recent legal provisions which guide and structure activities of the field are: the constitution, the Agrarian and Land Reorganization law and its decree of application, the code of environment and its decrees of application, the law organizing management of water resource and its decrees of application, the laws of 1998 on Public administration reform, the General Code of the Local Authorities (CGCT), the decree implementing water policy and strategies, and the 2000 decree specifying orientations of the reform of water infrastructures management in rural and semi urban areas, and the decree implementing the action plan for the management of water resources (PAGIRE). Water is part of the public domain just as sources, wells, boreholes, and other water points assigned to the public use or to a public entity and generally hydraulic infrastructures assigned to a public utility. The law gives the State the possibility to delegate its powers and responsibilities pertaining to the distribution of drinking water and to sanitation services. The law created the National Council of Water, a consultative agency supervised by the Minister in charge of water. The law also institutes planning committees in charge of managing water resources and hydrographic basins. The legal framework of sanitation in Burkina Faso is mainly based on the code of public health of 1994, the code of environment and the code public hygiene of 2005 5.2 The Institutional Framework The institutional framework of water sector is based on governmental actors and local authorities. The MAHRH, created in 2002, ensures implementation and follow-up of governmental policy in agriculture, hydraulics and halieutics resources. Its competences extend to the development of water and sanitation legislation and its application; design and management of water points; design and management of hydraulic installations; sanitation of worn water and excreta; management of hydro-agricultural installations; realization of hydraulic facilities by private parties; drinking water supply. The mission of the MAHRH in the field of potable water is supervised by the DGRE and the DRAHRH (Regional Directions of Agriculture, Hydraulics and Halieutics Resources). All these structures are placed under the authority of the ministry General-Secretary. The DGRE has the mission of developing, implementing and following-up the national policy related to management of water resources, drinking water supply and sanitation services. DGRE staff includes 29 employees of category A, 11 of category B and 11 agents of categories C, D and E. The 13 DRAHRH ensure the management of the structures of the ministry in their respective territorial area of responsibility including water. There are also 45 provincial directions of the ministry (DPAHRH) but they practically do not play a role in the RWSS. The law transfers to local communities competences covering management of water and sanitation sector, except for the regulation, i.e.: planning, programming, realization of the infrastructures, exploitation and management. For some of these fields of intervention, there is a legislative and lawful environment to which texts of application of the law on decentralization will be able to refer in order to guarantee the coherence of action of local communities with respect of sectoral arrangements. For the moment, rural communes remain weak regarding human and financial resources to carry out their responsibilities. 21 The sectoral dialogue is done with the National Council of Water, the Technical Committee of Water, and the framework of dialogue between the MAHRH and partners of the water and sanitation sector. The National Council of the Water created in 2002, which is a consultative agency gathering representatives of the State, local authorities, private sector and civil society has the role of assisting the MAHRH in the definition of general objectives and orientations of the national policy tending to ensure a sustainable water management. The water technical Committee, created in 2004, includes only members of the administration. It has the role of administrative coordination and harmonization of water policies of various government departments. The framework of dialogue between the MAHRH and partners of the water and sanitation sector (CCP-AEPA) was set up in 2005. All actors of the sector (public, private, civil society, development partners) are represented and regular meetings are taking place. Other actors of the sector are companies for equipment supply (76), engineering and design departments (49), committees of water points (CPE), associations of water users (AUE), repairing craftsmen (567) or private companies dealing with water management, and non- governmental organizations. Forty NGOs work directly with populations. They have set up on July 22, 2004 a dialogue framework for NGOs and associations of water and sanitation in Burkina Faso (CCEPA). A greater harmonization of PTF participations in RWSS sector’s achievements is desirable. The Bank, in close cooperation with Burkinabé authorities and within the framework of March 2005 Paris declaration on the development aid effectiveness, can play an important role on the implementation of this harmonization. Such a harmonization may integrate not only co-financings but also a better dialogue on the availability of data, procurement, support to the sector, follow-up and evaluation of programs and projects, audit and other aspects, which would reduce procedures currently too long, accelerate disbursements, reduce transaction costs, and facilitate the design and implementation of sector’s projects. The Unified Framework of Intervention (CUI-Cadre Unifié d’Intervention), defined by the PN-AEPA as a set of tools and rules binding all actors (State, communes, populations, NGOs, private sector and PTF), should support implementation of these recommendations. As far as sanitation is concerned, the Ministry of environment ensures the responsibility of policy and sector’s strategy coordination. It has the mission of harmonizing action plans of various ministerial sectors, supervising implementation of the strategy, controlling its impacts, encouraging progressive transfers of responsibilities to natural institutional actors which are communities, and ensuring the follow up and evaluation of the strategy. 22 VI ANALYSIS OF THE EVOLUTION OF PUBLIC EXPENDITURES IN RWSS 6.1 Budget allocation to RWSS sector 6.1.1 Evolution of budget allocations RWSS budget provisions have been less than 1% of the GDP during the period. They have however increased in real terms during the last years. Between 2001 and 2007, the budget allocated to RWSS has increased from 13, 5 billion FCFA (USS 28, 4 million) in 2001 to 30, 3 billion FCFA (USS 63, 8 million) in 2007. This increase shows the priority given by the government to the RWSS, in particular since 2005, in accordance with the CSLP and the national policy aiming at reaching the MDGs in RWSS in 2015. Previously, financial allocations to the sector had dropped in 2002, 2003 and 2004 whereas budget of the ministry in charge of water had increased (Ministry of Environment, then Ministry of Agriculture). 23 Table 16: budgetary allocations to RWSS 2001-200715 2001 2002 2003 2004 2005 2006 2007 Sector budgetary allocations (in 13,5 13,1 9,6 7,7 14,4 24,9 30,3 billion of FCFA) 16 In % of MAHRH budget 55,7 15,0 9,5 9,1 23,5 18,9 25,9 In % of National budget 1,9 2,5 1,7 1,1 1,8 2,9 3,1 In % of GDP 0,7 0,6 0,4 0,3 0,5 0,8 0,9 In % of Real Growth -3,2 -25,4 -20,2 86,9 73,4 21,8 Memo Total budgetary allocation (in 461,3 528,2 581,1 673,8 806,8 864,1 960,7 billion of FCFA) GDP in market price (in billion of 2.062 2.293 2.482 2.698 2.961 3.162 3.451 FCFA) Budgetary allocations of the Ministry in charge of water, real 261,2 15,4 -16,2 -27,1 114,6 -11,3 growth in % Table 17: Evolution budgetary allocations to RWSS 2000-2006 (in billion of FCFA) 35 30 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 6.1.2 Public funding of RWSS RWSS largely depends on external financing. On average, during the period 2001- 2007, budget devoted to the sector was covered to 87% by external funding and 13% by internal resources of the State. External financing has increased for about 22% on average for the same period. Loans constitute 25% of the total volume of external funding and have appreciably increased from 2, 1 billion FCFA in 2001 to 10, 9 billion FCFA in 2007. The share of grants also increased from 9, 1 billion FCFA in 2001 to 15, 2 billion FCFA in 2007 with a peak in 2006-2007 after a stagnation in 2003 and 2004. Since 2004, funding from own resources has considerably increased (in real terms) passing from 800 million FCFA in 2004 to 3, 8 billion FCFA in 2006. The composition of budget provisions by nature of expenditure is presented in Appendix 3. 15 Source: Ministry of Finances and Budget, Ministry of Agriculture, Hydraulic and Halieutic Resources. 16 For more detail, see Annex 3 24 Table 18: RWSS Budget by source of funding 2001-2007 – in % 2001 2002 2003 2004 2005 2006 2007 Δ% Total budget for RWSS 100,0 100,0 100,0 100,0 100,0 100,0 100,0 100 Internal Financing 15,7 6,0 15,5 10,7 15,1 15,6 11,4 12,9 External Financing 84,3 94,0 84,5 89,3 84,9 84,4 88,6 87,2 Loans 15,7 24,0 26,4 20,6 20,0 27,7 37,0 24,5 Grants 68,6 70,0 58,1 68,7 64,9 56,7 51,6 62,7 Table 19: Budget provisions by source of financing 2001-2007 in % 100.0 80.0 60.0 84.3 84.5 84.9 84.4 94.0 89.3 88.6 40.0 20.0 15.7 15.5 10.7 15.1 15.6 11.4 0.0 6.0 2001 2002 2003 2004 2005 2006 2007 Internal Financing External Financing 6.1.3 Other sources of financing of RWSS water points. More than 30 % of RWSS facilities built during the period 1997-2007, were by actors other than the Ministry of water resources. Distribution by source of financing is as follows: MAHRH: 67 %; other official partners: 26 % and; private sector/civil society: 7 %. 75 % of the sector’s investments were carried out through the ministry of water against 25 % by other actors. 25 Table 20: Financing Sources by RWSS facility – 1997-2007 17 Sources of AEP activities financing 1997-2006 Other State Partners; 18% NGO, Civil Society MAHRH, 75% 7% 6.1.4 Inadequate budgetary programming The current RWSS budget programming does not ensure a good mobilization of resources necessary to achieve the PN-AEPA objectives. The CDMT prepared by the MFB is disseminated by ministry and not by sector (see appendix 9). In the case of the MAHRH, there are three sectors (agriculture, hydraulics and halieutics resources). Dividing the CDMT of the MAHRH would facilitate the process of the triennial budget-program of the DGRE and budgetary arbitrations with the MFB. Coherence would be thus established between water government objectives as expressed in the CSPL, the PN-AEPA, and annual budgets allocated to RWSS. The CDMT of the MAHRH should be divided in sectors in order to translate governmental priorities in annual budgets allocated to the sector. RWSS Sector lacks qualified personnel at both the central and local levels. The PN- AEPA has retained among its priorities, reinforcement of the personnel in quality and number. An ongoing study will have to identify functions, positions and profiles and to appreciate existing competences before proposing an expansion staffing plan of the DGRE and Regional Directions of Agriculture, Hydraulics and Halieutics Resources (DRAHRH). Moreover, within the framework of the PN-AEPA implementation and the development of its triennial budget- program, the DGRE will have to reinforce its capacities with regard to sectoral and budgetary programming. This programming will have to be also reflected in the development of a CDMT and a budget-program at the level of MAHRH. The government should reinforce human capacities of the DGRE and MAHRH with regard to sectoral and budget programming. 6.1.5 Evolution of RWSS expenditures The rate of execution was weak and barely reached 50, 3% during the period 2001- 2006. Budget provisions show the will of the State to give priority to the sector. Unfortunately, 17 Source: Projects summary, programs and supports. Final report/ratio. MAHRH/DGRE. August 2006 26 only half of the resources available are used. The rate of budget execution has known high variations: from 22, 6% in 2002; it went up to 62, 2% in 2006. In nominal terms, the execution of expenditure is presented in table 21 hereafter. Table 21: RWSS budget executed during 2001-2006 (in thousand of FCFA) 2001 2002 2003 2004 2005 2006 Total 8.631.149 3.180.781 4.721.307 4.180.798 7.696.987 15.554.367 Operating costus 161.164 150.788 227.457 151.338 187.762 198.410 Salarie 117.822 130.914 145.460 122.880 163.248 143.480 Goods and services 18 21.142 18.075 73.497 19.958 18.514 23.998 Transfers 22.200 1.799 8.500 8.500 6.000 30.932 Operation off balance 43.342 19.874 81.997 28.458 24.514 54.930 Investment 8.469.985 3.029.993 4.493.850 4.029.460 7.509.225 15.355.957 Investment (Int.) 1.711.625 542.332 832.010 776.690 1.939.810 3.758.090 Investment (Ext.) 6.758.360 2.487.661 3.661.840 3.252.770 5.569.415 11.597.867 Source: Ministries for Finances and the Budget, Ministry for Agriculture, Hydraulics and the Resources Halieutics. By source of financing, the rate of expenditure execution on internal resources in RWSS sector was in average 79, 8% during 2001-2006 whereas that of the State budget was 93% (see the detail in Appendix 4). The remarkable improvement of the implementation rate of the national budget on internal financing was not translated in RWSS achievements. This weak performance is partly due to the procurement extreme slowness and the institutional weaknesses of the DGRE, in particular the lack of human resources at both the national and regional levels. But it is also explained by obvious imbalance between recurring expenses and capital expenditures, as shown later. The rate of expenditure execution on external financing was 46, 1% during the period, with a lower rate on loans than on grants. This situation is partly due to some difficulties encountered by the DGRE to satisfy conditions attached to loans and the relatively long procurement procedures, no objection of PTF activities and loans’ disbursements. A better coordination by the government of PTF activities could contribute to higher execution of the sector grants and loans. 18 It is advisable to specify that ‘goods and services’ correspond to "expenditure of material" of the previous nomenclature and to "operating expenditures" (title III) of the current budgetary nomenclature. They are resources given to administrative services for their operation except the staff costs. Transfers correspond to the current transfers (title IV) of the current budgetary nomenclature. The current transfers are nonrefundable payments to households, public or private structures and other budgets 27 Table 22: Budget execution rate by financing source 2001-2006 (in %) 94.60 97.30 100.00 90.20 90.00 81.80 79.00 80.00 70.00 63.70 62.20 57.30 60.00 52.30 52.70 48.10 50.00 40.00 30.00 23.70 20.00 10.00 60.40 20.60 46.30 47.30 46.00 55.70 0.00 2001 2002 2003 2004 2005 2006 Internal Financ. Excution Rate External Financ. Execution Rate Budget Total Execution Rate 6.1.6 Composition by category of expenditure (Distribution between capital and operating expenditures) Operating expenses, entirely financed on internal resources, represent only one very weak share of the total expenditure of the DGRE. This share was on average 3.1 % for the observed period (see table No 23). Almost the entire budget of the DGRE is devoted to public investment. However, projects financed by PTF often comprise operating expenditures relating to the management of these projects (agents payments, purchases of fuels, maintenance of vehicles and telephone and office expenses). The ratio operating expenses /capital expenditures is very low in RWSS compared to other sectors. The infrastructures sector, which is similar to RWSS (general services, roads and boreholes), has operating resources much higher than RWSS sector: 13, 5 % against 3, 1 % for RWSS. This confirms the weakness of human, financial and logistic resources available to the latter sector. Table 23: Financial allocations to admin/capital expenses of few ministries - 2001-2006 (in %) CATEGORY RWSS Basic Universities Health Infrastructures Education (roads) Admin. Expenses 3,10 62,43 78,00 65,02 13,52 Capital 96,90 37,57 22,00 34,98 86,48 Expenditures Composition of operating expenditures On average, 71 % of operating expenditures were devoted to wages. Operating expenditures are distributed between those relating to wages (wages, contributions to the retirement pensions, and allocations including family benefits) and expenditures off balance. 28 Expenditure relating to wages evolved from 117, 8 million FCFA in 2001 to 143, 4 million FCFA in 2006. The share of goods and services, i.e. expenditures on vehicles, computers and office equipments, were, on average, 0,2% of the total expenditures during the period (decreasing from 0.3% in 2001 to 0,1% in 2006). Services at both central and regional levels cannot function normally with such few resources. This situation undermines the State capability to assume its sector’s missions, in particular in terms of adequate follow-up and evaluation of achievements, support to equipment sustainability and support to local communities. A big increase in allocations for operating expenses in RWSS constitutes an urgency of first order. Table 24: RWSS Sector Budget by category of expenses 2001-2006 (in million FCFA)19 2001 2002 2003 2004 2005 2006 Administration 161,1 150,8 223,5 151,4 187,8 198,4 Salaries 117,8 130,9 145,5 122,9 163,3 143,4 Administration salaries excepted 43,3 19,9 78,0 28,5 24,5 55,0 Goods and services 21,1 18,1 73,5 20,0 18,5 24,0 Transfers 22,2 1,8 8,5 8,5 6,0 31,0 Investment 8.470,0 3.030,0 4.493,9 4.029,5 7.509,2 15.356.0 Investment on internal resources 1.711,6 542,3 832,0 776,7 1.939,8 3.758,1 Investment on external resources 6.758,4 2.487,7 3.661,9 3.252,8 5.569,4 11.597,9 Loans 706,5 828,8 1.191,4 1.119,4 671,9 2.978,0 Grants 6.051,9 1.658,9 2.470,5 2.133,4 4.897,6 8.619,9 Total Expenditures 8.631,1 3.180,8 4.717,3 4.180,9 7.697,0 15.554,4 Capital Expenditures Capital expenditures in RWSS constitute the main part of sector budget. They grew from 8, 5 billion FCFA in 2001 to 15, 4 billion FCFA. This represents 99% of expenditure carried out in 2006. Capital expenditures on external resources represented, on average, 77, and 7% of the total investment plans in RWSS during the period 2001-2006. IPPTE and IRDM Funds used to finance RWSS amounted to 1.642 million FCFA for equipments and 965 million FCFA in real expenditure; this represents an execution rate of 59% for the period 2001-2006. In spite of this relative weakness, expenditures on internal resources have substantially increased since 2005. They have been practically multiplied by 5, passing from 776, 7 million FCFA in 2004 to 3, 8 billion FCFA in 2006. These expenditures are devoted to national projects and to the counterpart funds of external financing projects. National projects entirely financed on internal budget resources in 2006 are not numerous. They concern programs of various boreholes, inventory of water resources and programs for drinking water supply in semi- urban centers. Capital Expenditures in Sanitation 19 These are expenditures at the central level (DGRE), except for 2001 and 2002 for which data of the DRAHRH are included. 29 It is practically impossible to carry out an analysis of the financing of sanitation, because of the lack of reliable data. PTFs are the only providers of funds for sanitation investments. This financing is integrated into RWSS financings and represents only 5% investments. The lack of sanitation and hygiene has a considerable impact on mass diseases of respiratory infections, diarrhea diseases and malaria. The PN-AEPA aims at providing an adequate access to sanitation to 5, 7 million people, which will increase the coverage rate to 54% in 2015. The government has also adopted PSNA’s document in April 2007. Investments planned over the period 2007-2015 are evaluated 64, 4 billion FCFA of which 37, 8 billion are for the ongoing projects. PSNA envisages also promoting a program intended to sensitize and educate stakeholders and communities so that they can adhere to the program, invest in sanitation facilities installations, and be able to exploit and take care of their maintenance. A sanitation service was created within the DGRE in January 2007 but it severely lacks qualified personnel. There is no agent specialized in sanitation in the DRAHRH. This lack of human resources implies objectives of the sanitation under-sector will not be easy achieved. 6.2 Budgetary resources for operation at the regional level Devolution is in place, but it is not very effective for RWSS sector. The MAHRH is represented in 13 areas of the country by DRAHRHs, but personnel are mainly affected to the sector of Agriculture. Operational budgets (goods and services) are weak. Table 25: Public Expenditures in Goods and Services in DRAHRH 2004-2007 (in million FCFA) 2004 2005 2006 2007 Budget Dotations 192 145 244 309 Expenditures Executed 182 142 188 Execution Rate in % 94,8 97,9 77,0 On average, each of the 13 DRAHRHs has received in 2006 a budget provision of 18, 7 million FCFA for expenditures related to goods and services. Budget provisions for goods and services are not dispatched between services of Agriculture Department and those of water. The priority being granted to Agriculture, resources for the water sector are obviously very weak. Very often, part of operating expenditures of water services at the regional level is charged on projects. However, it was not possible to quantify this contribution during the period. Since 2007, DRAHRHs have a delegation of financial allocations for goods and services. That allows them to be more autonomous vis-à-vis of DAF of the MAHRH. Remuneration of the personnel remains registered in the budget of MAHRH, but it is managed by the Department of salary payment of the MFB. The fact that regional directions have obtained delegated provisions constitutes a step toward what needs to be done, but the problem of budget provisions weakness and transparency in the distribution of these allocations at the regional level remain, nevertheless, a big concern. There is an important gap in the matter of devolution/decentralization between ambitions and reality on the ground. In the field of ambitions, the law of December 24, 2004 organizing CGCT, transfers, since 2009, to communities, competences covering RWSS 30 management, except for the sector regulation. In reality, rural communes remain weak on human, financial and logistics resources and are unable to assume their responsibilities. Decentralization will function only if, preliminarily, devolution is successful. DRAHRHs are stripped in human, financial and logistic resources. These structures, which have a paramount role to play in meeting objectives of the PN-AEPA and MDGs, cannot fulfill it, because of lack of resources. Their mission of follow up of activities, sector achievements, and functionality of the sector’s facilities and support to local communities has to be reinforced. Moreover, there is no hierarchical linkage between the DGRE and DRAHRHs, although their belonging to MAHRH and delimitation of their responsibilities is fuzzy. Reinforcement of DRAHRHs and adequate budgetary resource allocation for operating expenditures become impossible to circumvent if PN-AEPA objectives and MDGs are to be achieved in a decentralized context. A new type of partnership between the State, local communities and the private sector is to be promoted and implemented. In this partnership, central and regional governments provide effective support to local communities with regard to projects conceptualization and implementation and delegate management of facilities to the private sector. The dialogue, which is established in such a process, fosters competences reinforcement of regional and communal councils and helps the State to better define its role, assistance and control as prescribed by the CGCT. A handbook of work procedures, elaborated in dialogue with local communities, would reinforce the process of decentralization in RWSS sector. The DGRE should prepare a handbook of work procedures between centralized and decentralized services of the sector and local communities in the implementation of RWSS programs. The government should also foster devolution of the sector procurement. The test undertaken in DRAHRHs, where most (offers, opening of the folds, attribution of contracts) is done locally, could be generalized to other areas of the country. 6.3 Recipients and local communities contributions Financial contribution of recipients and communes to the initial investment is extremely modest. A study of RWSS sector financing over the period 1997-2005 showed that users financial contribution to the initial investment does not exceed 1% of the total amount of projects financed through MAHRH 20 during the period. Contribution requested to recipients in projects financed through other official partners and NGOs was 5 % and 3 % respectively. Public financing thus ensures almost the total cost of RWSS sector. 20 Study for the establishment of an outline of projects, programs and support in the field of AEPA in Burkina Faso. Final report. DGRE. August 2006. 31 VII PROSPECTS at HORIZON 2015 To meet the MDG targets, it will be necessary to provide an adequate access to drinking water to 4 million additional people. That will mean increasing the access rate form 60 % in 2005 to 80 % in 2015. For sanitation, the expected results are to ensure an adequate sanitation access to 5, 7 million additional people, thus to pass from a coverage rate of 10 % in 2005 to that of 54 % in 2015. In order to achieve these goals, the PN-AEPA for rural and semi-urban areas includes three components: (i) Drinking Water Infrastructures include construction of approximately 17.300 modern water points (boreholes and wells equipped hand pumps) 6.500 in schools and health centers; 520 simplified potable water pipes, 75 autonomous water stations. There is also a plan to replace 4.500 hand pumps, rehabilitate 11.000 superstructures, 900 boreholes, 1.000 modern wells, 250 water conveyance and 75 autonomous water stations; (ii) Sanitation Infrastructures include construction of 395.000 family latrines, 60.000 sumps for individual use, and 12.300 blocks of public latrines and rehabilitation of 100.000 family latrines; (iii) Unified Intervention Framework gathering implementation procedures and measures of capacities reinforcement for an effective management of RWSS sector, promotion of an environment which is favorable to a constant development of drinking water and sanitation infrastructures and sustainable water service. From 2007 to 2015, the PN-AEPA aims at building 2.670 new modern water points per year which will necessitate 37 % increase in sector outputs compared to the period 2001-2006. Such an increase seems realistic. However, the absorption capacity will have to improve. It is the most important challenge of the sector. This implies: (i) implementation of a budget-program approach; (ii) harmonization of procedures about activities execution; (iii) development of new ways of financing activities (common basket, budgetary support.), (iv) improvement of procurement procedures, and (v) reinforcement of capacity in the management of programs by key State’s actors. Meeting objectives in sanitation remains unrealistic even with the subsidy of 90 % of autonomous drainage systems that is expected. Results in other areas show that subsidy does not constitute a deciding factor to encourage the request of populations for drainage systems. In addition, it is not certain that all external partners adhere to the principle of a strong subsidy of family latrines. The total cost of the PN-AEPA in rural and semi-urban areas amounts to 406 billion FCFA and is dispatched as shown in the following table 21 : 21 Source: National Program for Drinking water and sanitation Supply by 2015. 32 Table 26: PN-AEPA total cost in rural and semi-urban areas 2007-2015 Category Total cost % total Infrastructures « Potable water » 308 363 688 600 76% Infrastructures « Sanitation » 70 846 752 768 17% Framework of interventions 26 768 269 459 7% Total 405 978 710 827 100% Execution of this budget plan is envisaged in three phases of three years each one and the total cost of the first phase 2007-2009 is about 120,6 billion F CFA for the rural area. The first phase financing gap is though 64, 2 billion FCFA. VIII CONCLUSIONS AND RECOMMENDATIONS Achieving MDGs objectives on drinking water supply is possible for Burkina Faso. The current capacity of the sector is already high. It will have to be further increased by 37 % compared to the average output annual over the period 2001-2006, which appears possible. The simple fact of having precise quantitative objectives to reach, like the construction of 2.670 new water points per year, is a major projection compared to the past and this will energize all the stakeholders. A gradual implementation of a programmatic approach may help to meet sector objectives by 2015. The roadmap of the DGRE constitutes a key tool in piloting the process towards a programmatic approach. Many tools are being improved, in particular with regard to the planning and the follow-up-evaluation of the sector’s activities. New financing methods of the national program in discussion will reduce transaction costs to accelerate disbursements. For that end, the budget-program and the CDMT are extremely useful instruments for better objectives articulation, results, and resources and to bring technical and financial partners to work together within a strategic and budgetary unified framework and develop synergies necessary to improve sector effectiveness. The current budget programming of RWSS does not ensure resources mobilization necessary to achieve objectives of the PN-AEPA. The CDMT of the MAHRH should be worked out by the sector in order to translate governmental priorities in RWSS in annual budgets which are allocated to the sector. A greater dialogue is necessary between the DGRE, the MAHRH and the Ministry of Finances on the volume of RWSS sector expenditures. Development of the sector is not undermined by the lack of financial resources, but rather by its low execution capacity of allocated budgetary resources. RWSS sector suffers from an insufficiency of qualified personnel and resources at both the central and regional levels. The fact that only 50 % of the resources available are used is mainly explained by planning problems, procurement process slowness, multiple procedures according to financing models, and lack of visibility with regard to resources available to the sector. Another issue is about the imbalance between operational resources and investments to be implemented. The government should reinforce human capacities of the DGRE and MAHRH with regard to the sector budgetary programming. Operating expenditures (recurring expenses) represent only 2% of the totality of expenditures carried out over the period 2001-2006. This imbalance weakens the effectiveness 33 of the sector with regard to investments’ implementation. Also, this affects negatively investments sustainability and their impact on population living conditions. A strong increase of ordinary expenses related to RWSS sector constitutes a first order urgency. The current management of sector’s water and sanitation facilities is not effective. Facilities out of order, in particular those of the type AEPS with a rate exceeding 35%, constitutes an enormous waste of the public resources. The rate of broken down facilities remains high, indicating low effectiveness of public expenditures in the sector. In spite of some encouraging results obtained in certain areas of the country in terms of implication of the private sector, the majority of sector’s facilities which are still managed by communities have clearly shown their ineffectiveness. Investments sustainability deserves special attention. It is indispensable to introduce on a large scale new ways of managing facilities and water points by allowing stakeholders to participate in the definition of new management styles and solutions to sector’ issues. Devolution and decentralization appear to be key elements to improve and increase performances of the sector. The law of December 24, 2004 related to the Code of Local Authorities (CGCT) transfers, from 2009, competences covering all aspects of RWSS sector management, except for the regulation. But communes remain weak with regard to human, financial and logistics resources. It is though desirable to transfer to these decentralized entities all the resources likely to help them accomplish their sector responsibilities. Decentralization will function only with a good devolution of the administration. Transfer of financial and human resources at regional State services will be useful for decentralization. Reinforcement of DRAHRHs and adequate allocation of budgetary resources for operating expenditures become impossible to circumvent if objectives of the PN-AEPA and MDGs must be achieved in a decentralized context. The DGRE should prepare a handbook of work procedures defining responsibilities and interactions between the State, decentralized sector services and local communities with regard to implementation of RWSS programs. The government should also work on the devolution of RWSS sector procurement. All the reforms undertaken by DRAHRHs are critical (public offers, folds opening, procurement) could be generalized to other areas of the country. A new type of partnership is to be promoted between the State, local communities and the private sector. The follow-up and evaluation of investments and support to communal authorities and to recipients which are directly responsible the sector’s facilities maintenance will have to be considerably reinforced. Missions devoted to the State should be ensured by a substantial increase of operating expenses. Sanitation is the RWSS sector underdog. Sanitation national program is very ambitious but it lacks resources. Financial provision envelopes intended to promote sanitation and social marketing in the budget-program 2008-2010 are insufficient to push for big change. With regard to PN-AEPA, increase in autonomous sanitation coverage is based upon strong subsidy policy of investments (90 %). Results in other countries such as Ghana show that a high subsidy rate is not often synonymous of populations demand stimulation for autonomous drainage systems. Burkina Faso should give more importance to the development of new methods of promoting sanitation, such as the concept of "Total Sanitation” developed in India, Bangladesh 34 and Ethiopia without subsidy. Community Health clubs in Sierra Leone are another success story example. Data acquisition on real achievements and budget expenditures is a serious issue not yet addressed by the DGRE. It is though crucial that the DRGE be given the responsibility of centralizing periodic collection (for example, quarterly or semi-annually) of data necessary to the analysis of RWSS sector. Installation of a computerization system of expenditures financed on external resources would be also desirable. This would allow the possibility to interface with the CID and make available quantified information on public investment expenditures and their transparency. 35 Measurement Matrix of PAP-CSLP 2008-2010 Programs 2008 2009 2010 Responsibility. Partners MEF, MATD, Validation of the BP Water Sanitation 2009- MAHRH DANIDA, 20011 for MAHRH, MFB and partners Asdi In comparison with the existing 3 sectors within MAHRHs and projections of water and sanitation sector (PN_AEPA, budget CDMT Water and sanitation CDMT water and sanitation programs), taken into account by MAHRH formulated before June 30, 2009 implemented financing budget-program in water and sanitation for 2009-2011 Satisfactory implementation of the budget Satisfactory implementation of 2010 Satisfactory implementation of the budget program 2008 of the DGRE, including budget program of the DGRE, including programs 2009 of the DGRE, including construction of new water points (1400 PEM construction of new water points (1000 construction of new water points (1100 PEM and 53 AEPS), rehabilitation of 1150 PEM PEM and 18 AEPS), and installation of and 46 AEPS), rehabilitation of 170 PEM, and 23 AEPS, and installation of 25 PPP for 25 PPP for management of water and installation of 75 PPP for management management of water conveyance systems. conveyance systems. of water conveyance systems Delegation of certain competences of the Secretary-general of MAHRH to the DGRE for implementation of the PN-AEPA at the decentralized level Potable Water and Sanitation Introduce the possibility to authorize programs for loans investment on internal resources for the sector of water and sanitation. Improve Drinking Water Supply and Sanitation Sanitation Strategic Development plan (worn water and excreta) of O N E A for 8 urban Sanitation Strategic Development plan (worn and semi urban centers (2008) and to MEF, water and excreta) of ONEA for 28 urban continue the hygiene program of O N E A in MAHRH DANIDA, and semi urban centers in 2009 – 2010 4 secondary cities in accordance with the Asdi PNAEPA 36 37 Annexes 1: Total of water points built: 2001 - 2006 (BF, FP, PP, ET, and FR expressed in EPEM) EPEM total Regions 2001-2006 2001 2002 2003 2004 2005 2006 Cascades 248 13 21 46 43 89 36 Centre 398 67 81 62 75 79 34 Centre Sud 673 90 113 70 163 146 91 Centre-Est 1.409 286 322 161 266 154 220 Centre-Nord 1.314 153 111 172 162 264 452 Centre-Ouest 899 82 185 140 174 200 118 Est 1.355 262 246 185 231 257 174 Hauts-Bassins 756 53 89 193 117 142 162 Mouhoun 1.127 124 72 85 230 165 451 Nord 1.295 99 196 200 216 113 471 Plateau Central 1.020 184 245 163 121 183 124 Sahel 441 35 82 44 85 65 130 Sud-Ouest 757 116 114 107 166 192 62 Total 11.692 1.564 1.877 1.628 2.049 2.049 2.525 FP: Fountain Point DP: Borehole equipped with hand pump PW: Permanent well DW: Recent borehole water 37 38 Annexes 2:Water Personnel in the Drahrh (2004) Techn. Eng. Water Engineer Engineer Eng. Rural Agricultural Hydrologist ETSHER Hydrologist Geologist Mean Halieutic Sup. & Forests Hydrogeologist Hydrologist Equip. Engineer Technician Sup. Tech. Agent Engineer Techn. Res.Eng.. du GR Total Hauts Bassins 1 3 1 1 3 1 1 11 Cascades 1 1 Sud-Ouest 1 2 2 5 Nord 2 1 3 Boucle du Mouhoun 3 1 2 1 7 Sahel 1 1 1 3 Est 1 1 Centre-Nord 1 1 Centre-Ouest 0 Centre- Sud 1 1 Centre-Est 1 1 1 3 Plateau Central 2 2 Centre 1 2 1 4 Total 2 4 1 1 13 4 3 10 1 1 1 1 42 Source: Direction of Human Resources MAHRH 38 39 Annexes 3: RWSS Budgetary Provisions by Nature – 2001-2006 (in Thousand FCFA) 2001 2002 2003 2004 2005 2006 2007 TOTAL 13,465,843 13,124,689 9,610,683 7,675,119 14,441,302 24,897,822 30,275,485 Administration 237,884 184,998 372,106 188,740 212,288 263,144 264,262 Wages 177,853 157,956 258,783 155,810 187,768 203,312 204,430 Admin. Exp. Off balance 60,031 27,042 113,323 32,930 24,520 59,832 59,832 Investment 13,287,990 12,966,733 9,351,900 7,519,309 14,253,534 24,694,510 29,835,680 Investment (Int.) 2,092,600 886,837 1,452,083 821,281 2,149,612 3,861,423 3,368,000 Investment (Ext.) 11,195,390 12,079,896 7,899,817 6,698,028 12,103,922 20,833,087 26,467,680 39 Annexes 4: RWSS Budget 2001-2006 2001 2002 2003 2004 2005 2006 Total budget RWSS in % 100,0 100,0 100,0 100,0 100,0 100,0 Internal Financing in % 20,2 13,7 18,5 19,3 25,8 24,5 External Financing in % 79,8 86,3 81,5 80,7 74,2 75,5 Loans 8,3 28,8 26,5 27,8 9,0 19,4 Grants 71,5 57,5 55,0 52,9 65,2 56,1 RWSS budget execution rate 63,7 22,6 48,1 52,3 52,7 62,2 Internal Financing 81,8 57,5 57,3 94,6 90,2 97,3 External Financing 60,4 20,6 46,3 47,3 46,0 55,7 Loans 19,5 26,9 48,3 70,4 23,6 43,5 Grants 66,4 18,4 45,5 40,3 52,9 61,6 State provisions under Internal Financing (in million FCFA) 317,1 340,0 343,9 448,1 514,6 570,9 State provisions executed under Internal Financing (in million 281,4 309,2 313,4 430,7 485,9 549,4 FCFA) Rate of implementation of the State budget under internal financing 88,7 90,9 91,1 96,1 94,4 96,2 (in%) 40 Annexes 5:Trend of investment cost of modern wells in Burkina Faso 2002 2004 2005 Price of the linear meter 176.153 188.590 188.590 Well average price in FCFA (20 ml) 3.523.060 3.771.800 3.771.800 Average price by person served (300 people 11.744 12.573 12.573 by water point) Trend of investment cost of boreholes equipped with PMH (60 ml) Year 2000 2001 2002 2003 2004 2005 Implantation 225.000 225.000 225 000 225 000 225 000 225 000 Borehole 1.800.000 2.400.000 2.600.000 2.580.000 3.931.440 3.270.000 Surface laying out 528.295 1.130.000 489.855 759.024 759.024 759.024 Pumps 1.240.125 1.240.125 1.084.220 1.308.166 1.331.051 935.000 Average cost in FCFA 3.793.420 4.995.125 4.399.075 4.872.190 6.246.515 5.189.024 Average price by person served (300 people by 12.645 16.650 14.664 16.240 20.822 17.297 water point) 41 Annexes 6: Regional comparison of expenditures carried out in RWSS sector 2001 2002 2003 2004 2005 2006 Access to potable water (in %) Ghana 41 53 Mali 45 50 Burkina Faso 46 60 Total Expenditures (in million of US$) Ghana1) 10.7 24.9 29.2 19.9 47.7 65.5 Mali 10,1 10,1 8,8 15,7 27,1 31,3 Burkina Faso 18,0 6,6 9,8 8,7 16,0 32,6 Share of National Budget (in %) Ghana1) 1,2 2,5 2,2 1,3 2,2 2,6 Mali 1,5 1,1 0,7 1,2 1,9 4,7 Burkina Faso 3,1 1,3 1,5 1,0 1,6 2,8 Share of GDP (in %) Ghana1) 0.2 0.4 0.4 0.2 0.5 0.5 Mali 0,4 0,3 0,2 0,3 0,5 0,6 Burkina Faso 0,9 0,2 0,2 0,1 0,3 0,5 1) In Ghana, the national budget is made up of different sources of financing which are difficult to decipher. Hence, the reference is based on allocated expenditure. 42 Annexes 7: Institutional Context of Forecast and Execution of Public Expenditures 1. Management of public expenditures of the State has been computerized with the aim of improving transparency, reliability and traceability of budgetary operations through the integrated circuit of expenditure (CID). The CID, an automated system of expenditure management, treats information in real time according to variable criteria: expenditure destination, purpose of the expenditure, recipient, and various syntheses. Procedures put in place for the preparation, execution and implementation and follow-up of the State budget are characterized by: - A network of microcomputer with direct access to all data of the State budget except for those related to the execution of expenditure on external financing; - A single and controlled data capture by the administrator of allocations; - A path of expenditure files imposed and controlled in which each actor controls and validates files before transmitting them to the following actor; - An access to information in real time y Equipments budget synthesis; y Budget implementation synthesis on a precise date y Destination of financial resources of the State according to sectors and economic operations recipients. y Synthesis of expenditure by nature - The ability given to each actor intervening in the files processing, to consult and/or update only data which are necessary for him; - A better management of expenditures by the modulation of budgetary operations through the possibility of opening and locking the system. 2. Since 1991, the Government of Burkina Faso, supported by its development partners engaged in a process of economic and financial reforms aiming at the restoration of public finances, in particular, foreign debt reorganization (cancellation and recycling), postponed payment balancing, staff costs control and disengagement of the State from State owned companies. After this first generation of reforms and at the end of an internal diagnosis as well as conclusions of various studies and reviews of public expenditures, the Government adopted in July 2002, the Plan for Reinforcement of Budget Management (PRGB-Plan de Reinforcement de la Gestion Budgétaire) with the objective of improving transparency, reliability and effectiveness in budget control. Institutional, organizational and legal Reforms aiming at creating a harmonized framework at both the national and regional levels. At the institutional and organizational plan, audits of the principal structures were accomplished. Action plans are under development or implementation following the conclusions and recommendations of these audits. Harmonization of financial management mechanisms taking into account UEMOA directives and transposing them in national laws such as: the law relating to the national budget, public accounts, public accountants status, directors and administrators of State allocations and its dismemberments as well as the control of its financial transactions. 3. The budgetary programming process has known a notable evolution with the introduction of the budget-program and a mid-term expenditure framework (CDMT) intended to 43 improve the quality and relevance of expenditure. This Introduction constitutes a noticeable improvement of procedures of resources allocation. Started since 1998, the budget-program relies on: - The definition of objectives to be achieved during one given period in response to a need; - Identification of programs and activities to be implemented in order to achieve these goals; - Evaluation of activities which are to be carried out; - Definition of indicators allowing assessing results of actions. The first results led to more requests for resources. Introduction of the CDMT came to mitigate this insufficiency because it determined ceilings of expenditures by title and section compatible with State financial resources. Burkina Faso works out since 2000 a Mid-term Expenditure Framework (CDMT-Cadre de Dépenses à Moyen Terme) ensuring a link between the CSLP and the annual budget. This instrument of budgetary programming defines a Multi-annual framework of stable resources, supports a sector wide approach oriented, with performance objectives, sets up a coherent system of resource allocation, with the intersectoral and sectoral strategies of the government, in accordance with the CSLP orientations and determines foreseeable financial envelopes enabling ministries to elaborate mid-term sound strategies and programs. The development of CDMT comprises four principal stages: - Determination of total envelopes. Macroeconomic framing (projections of main macroeconomic aggregates, real sector, external sector, sector public finance and money sector) determines envelopes of expenditure by budgetary title and receipts forecasts. The CDMT 2007- 2009 was conceived according four scenarios: central or trend, optimistic, pessimistic and ministries and institutions capacity of absorption. - Determination of scenario of reference. It is a question of considering the total cost of all ongoing programs within ministries and institutions. A projection of the recurring expenses is not only done on the assumption of a renewal of voted services of the previous year, the estimate of recurring loads of projects which will be completed during the triennial period, but also on the estimate of economies to be realized on the budget. Also, a projection of capital expenditures corresponding to the ongoing projects, a projection of projects which start during the period and whose financing is acquired and with the estimate of the economies to be realized on the budget- program is done. The scenario of reference thus corresponds to a forecast of ordinary expenditures and in capital expenditures without new measures and possibly with some economies. - Determination of envelopes to be distributed by title. It is obtained by the difference between the total envelopes and envelopes of the scenario of reference plus a reserve of precaution. The reserve of precaution makes it possible to take care of relevant needs not taken into account during various levels of arbitration. - Determination of RWSS sector financial envelopes. It consists in determining the total envelope which goes to each ministry and institution after subtracting the envelope of reference and the additional envelope, including PPTE envelope. This exercise is in the center of CDMT approach since it reflects government priorities and engagements with the PTF. 44 Unfortunately, these budget programming tools present insufficiencies which make them not very effective if not inoperative. Concerning the budget- program, one can note a total absence of legal text framing its establishment: methods of preparation, execution and control. Implementation of the CDMT is difficult due to the absence of a handbook of procedures and a critical mass of experienced agents. The lack of control and the precariousness of resources make that forecasts based upon macro-economic assumptions are subjective. Thus, when adopting the budget, regulation measures are taken for the following reasons: - Budgetary support is not mobilized; - Revision of revenue forecasts due to insufficient revenue recovery. - Economic problems impossible to circumvent which have occurred after framing. Budgetary debates are always focused on resources and not on results. Arbitration of recurring expenses is done on two levels: Technical Commissions (one for recurring expenses and another for capital expenditures); and the Minister of Budget. Forecasts are generally adopted when ceilings by title and section are respected. In other words emphasis is not sufficient placed on the relevance of the expenditure suggested. 4. A traditional budget execution which is well framed by legal provisions a better control of the circuit of expenditures. The Law of Finances as well as other laws and regulations fix the rules relating to the implementation of the annual budget by a clear definition of attributions and responsibilities for various actors. - Administrators of allocations entitled to make the decision to carry out expenditure, propose expenditure engagement and prepare its liquidation. - The Minister in charge of the budget, director of the State budget, additional budgets and the special accounts of the Treasury in charge of allocations implementation, control of operations and the exact application of regulations relating to public accounts and payment authorizations. - The public accountant who carries out two types of operations: those of the payer which consist in checking respect of expenditures’ procedures in particular the existence of payment supporting documents, mode of payment and the quality of the creditor before paying. However, with regard to budget execution, reforms and relevant actions are taken to support the effectiveness and celerity of expenditure procedure and the follow-up of budget execution. However, many problems in the chain of public expenditures disturb their execution. Management of material expenditure remains too centralized in the government departments. This constitutes a big impediment for the decision-making. Nomenclature of expenditures supporting documents which is not always respected leads to many rejections of files which delay the execution of expenditures. Those working in the expenditure chain face competences conflicts in the treatment of files due to the non respect of roles and attributions of each actor (financial control, payments director, Accountant) as stipulated in legislative and legal texts. 5. In spite of all these efforts, execution of public expenditures remains tributary of the procurements insufficiencies. Procurement organizes execution of the equipment, investment, and operating expenditures. Its management is characterized by a disparity of procedures tied to the diversity of financing sources. Also, the principal challenge is to have 45 national procedures which allow effective consumption of the resources as well as the application of international standards leading to the dissipation of any doubt about transparency and equity in procurement. The first reforms have determined procurement procedures characterized by a definition of roles and attributions of actors, as well as the cycle and circuit of procurement. Administrators of allocations and commissions of procurement (CP) of ministries and institutions are the genuine levers of procurement management. The Directorate-General of procurement is not involved in the process of folds opening and analysis of offers. It is a central structure of the ministry of finances which ensures offers publication and controls the regularity of procurement. The main reforms in implementation include y Redefinition of attributions of DGMP and creation of the Regulatory Authority of procurement; y Sub-commission of analysis; y Generalized delegated contract management y Computerization of the procurement process The purpose of the redefinition of attributions of the DGMP and the creation of the Regulatory Authority of procurement are to prevent the DGMP from continuing to be “judge and defendant”. Regulation Authority has the role of ensuring regulation, follow-up and evaluation of the procurement system. Also it will have periodically to evaluate the conformity and performance of the system in comparison with indicators and international standards. A greater autonomy of the analysis sub-commission will lead to more effectiveness and equity. Sometimes there are conflicts difficult to resolve between the procurement commission and sub-commissions of analysis. The new formula would be to have each Minister propose a list of members for sub-commissions by taking into consideration their object and competences of the high level staff. Thus it will be established a national list from which one will draw the members of sub-commissions. The national list will benefit from qualifying training for a larger reinforcement of capacities. Thus henceforth, the procurement commission will open folds and give the files to a sub-commission whose list of members is random and on which it does not have any influence. This latter will carry out analysis and submit its report to the procurement commission. In the event of conflict, the DGMP and when necessary, the authority of regulation will be asked to intervene. Generalized delegated contract management aims at accelerating the procurement process and encouraging a better follow up of the execution of operations. Generalized delegated contract management was inexistent. This function is presently regulated by a decree reformulating the procurement process. This function will be subjected to the same constraints as that of the administrator of allocations: conformity of the DAO, publication of offers, and control of the examination and analysis of offers results. Procurement computerization aims at controlling time of offers treatment. Implementation of the system will allow the personnel to follow operations in real time and control treatment of files in each service and focus the attention on impediment sources. 46 Annexes 8: Collect and Financial Data Processing Staff costs Treatment of wages had several problems: y Forecast and wages execution were done from the wages balance (SYGASPE). Change of agent from a service to another was not always taken into account by this chain due a lack of wages balance update. As a result, an agent in a particular unit can be in the wage plan of another; y RWSS sector has faced several institutional evolutions: (i) it has been transferred from the Department of Environment and Water to the MAHRH. For certain figures (it was necessary to resort to public records in order to have forecasts of preliminary draft budgets because RWSS recurring expenses were not dispatched in budgetary documents provided, but instead transferred to the Secretariat-General of the MAHRH. y Dramatic changes have occurred in the movement of personnel in central and regional departments: DGH, DGAEP, DGIRH at the central level and DRH and DRAHRH at the decentralized one. These various situations explain fluctuations at the wage level. The regrouping of services AEPA within the DGRE could allow a better control of the recurring expenses of wages. Transfers and operating expenditures Data acquisition was made from the implementation of 2001 State budget deposited at the Court of Auditors and presented to the Congress. For the other years, all figures are those of the integrated circuit of expenditures and relating to budget controls closed on December 31 of the indicated years. These figures underwent treatments without modifications. Capital expenditures Capital expenditures have undergone a particular treatment. For those financed on external resources which are not carried out through the CID, data compilation was done from reports of the Directorate-General of Evaluation and Control of investments (DGCEI). The DGCEI has, along with the Directorate-General of budget, the responsibility of forecasting State capital expenditures. Moreover, it ensures the follow-up of their execution. It produces for each budget control, in collaboration with the departments of studies and planning, a report on the execution of the PIP. This report is validated by ministries and institutions, and adopted in the Council of Ministers. All data were collected on various existing files. Treatment initially related to the identification of budget headings concerning RWSS sector. This work was made in collaboration with the DGRE (Department of drinking water supply). Then, resumption of forecasts and executions of State capital stocks, State counterpart, loans and subsidies was done. This work was done for the State as a whole for the period 2001-2007. 47 Annexes 9: Management of the Public Expenditure Budgetary programming Management of public expenditure in RWSS is generally done under the same conditions as those of the State. For a good comprehension of these procedures, annex 7 proceeds to a brief evaluation of the preparation process, execution and control of budget expenditure of the State and assesses its strengths and insufficiencies. Here will be mentioned two key elements of RWSS sector: the CDMT and the Budget-program whose introduction has led to a notable evolution of budget programming. 1.1 The Budget Program The DGRE has begun developing a budget programs in 2006. The budget program is based on the definition of objectives to achieve, identification of programs and activities to be implemented, evaluation of activities to carry out and the definition of indicators of performance. This exercise did not lead to tangible results. 1.2 The CDMT The CDMT aims at giving a vision of the budget policy and framing the development of annual budgets, by determining expenditure ceilings, compatible with macroeconomic balances. The CDMT supposes that the government has clearly definite sectoral policies to which must be associated strategic plans defining objectives to be reached as well as resources necessary for that. It is located upstream of budget estimate and fixes, ministries and institutions envelopes amounts. The MAHRH just like the other ministries takes part in the development of the CDMT. At the beginning of year, the MFB sends tables to be filled by ministries, with information on staffing, costs of operation, transfers and investments (per recipient structure and type of financing). A technical Committee in SP-PPF examines these information and discusses them with ministries’ technicians and representatives of the main departments of the MFB, in particular the Department of Budget. A technical Committee at the level of the SP-PPF takes into account the annual revision of the CSLP of April - March. The object of these discussions is to review the priority needs of ministries and determine the volume of additional envelopes. Within the framework of distribution of additional envelopes of expenditure of goods and services (title III), the technical Committee retains two groups: group I, composed of the priority sectors, receives 65% (social sectors: 50%, rural development: 20%, governorship: 20% and others: 10%) and group II which receives 35%. The MAHRH which oversees rural development receives only 5% of the additional envelope. Scale of the additional envelope of capital expenditures (title V) is 60% for social sectors, 20% for rural development and 20% for governorship sectors. Conclusions of the Committee are validated by the Council of Ministers. 1.3 The budget programming at MAHRH CDMT of MAHRH is total and does not follow a distribution by sector. The MAHRH includes three sectors: agriculture, hydraulics and halieutics resources. There is no key for resources distribution likely to help each sector to accurately program expenditures necessary to the achievement of its objectives. The CDMT is in fact an aggregate and indicative budget 48 estimate without details beyond the title. There is no handbook of procedures or development software as well as a critical mass of experienced agents. Finally, the budget program within the MAHRH is based on the logic of resources and not on objectives and results to achieve. There is not a true budget program apart the document which defines objectives and programs of the MAHRH and which does not meet standards of budget program. 1.4 Budgetary programming at the DGRE Budgetary programming at the DGRE was done in a traditional way, i.e. founded on the logic of resources, during the period 2001-2006. It was done by several services of the ministry of water. The procedure however changed since the transfer of RWSS services to the DGRE. In 2007 the DGRE has chosen budgetary programming based on the logic of objectives and results. The PN-AEPA is from now on the main instrument targeting MDGs in the sector. The DGRE has worked out a triennial budget program 2008-2010 for that goal. The process of budget programming of the MAHRH and the DGRE has faced various problems: (i) inadequate time for budget preparation: budgetary guideline giving less than two months to administrators for the development and submission of preliminary drafts of expenditure. This time is too short to have really all actors involved in the whole process; (ii) non control of forecasts of capital expenditures: information concerning the estimated withdrawals on external financings is not available at the moment of budget development. The revision of the PIP in June or July makes it possible to take into account expenditure to be carried out; (iii) studies of pre investment: absence of budgetary heading for studies does not facilitate forecasts clearness. Some development partners condition their financing to preliminary studies carried out by the Government. 1.5 Institutional aspects of the execution of RWSS expenditures The DAF is an administrator of allocations allocated in the budget. It is entitled to make the decision to carry out expenditures, propose engagement and prepare expenditure liquidation, only on internal resources. The other stages are: liquidation, planning and payment are supervised by the MFB. Management of expenditure of materials remains centralized in the DAF/MAHRH. Delegation of allocations is not effective at the central services. Centralization of management by the DAF slows down the process of decision-making. Because of decision taken out of time, problems accumulate and become increasingly difficult to solve. Many rejections of files delay the execution of expenditures. Delegation of allocations to the DRAHRH for goods and services (title 3) is functional since 2007. These latter can follow the execution of their expenditures in accordance with the needs and calendar of activities. Delegation of allocations does not relate to capital expenditures entered with the title V of the State budget. Actors on the chain of public expenditures do not have access to the same information. Those who work out and know the contents of the budget are not those who control the regularity of the expenditure. That causes incomprehension and is source of conflict between the administrator, the director of credit and the Financial Comptroller or accountant. Thus, a file can pass the stage of financial control and be rejected at the level of scheduling. A file can reach the stages of financial control and planning and even be rejected by the accountant for erroneous budgetary allocation. Rejections which are consequences of bad information flow. An expenditure charged to a budgetary heading which has been the subject of a budgetary refitting by decree, can be 49 rejected at the phase of payment, because the accountant is not informed of this refitting decree. Files are sometimes rejected for additional aspects not appearing in these provisions and face sometimes successive rejections by the same service for different reasons which could have been corrected at the time of the first rejection. This often leads to the payment delay. Procurement The main part of water public expenditure is carried out through the procurement process. Administrators of credit, in reality, the EPD and projects leaders are procurement main actors. In addition to their role in the procurement process, they have also the following attributions: initiative of public purchases related to their competence; elaboration of the document of public offer on the basis of the existing standard DAO; modification of the standard DAO based on the visa of DGMP; analysis of offers and proposal for an attribution of the contract through the structures of procurement management by the Commissions of Attribution of the Markets (CAM); and finally supervision of the effective execution of services, either directly, or through other people specialized on the matter. The DGMP is not involved in the process of folds opening and analysis of offers. Its role is limited to the control of the regularity of the process through the control of DAO; publication of public offers and results in the review of procurement; control of offers analysis, reception and treatment of complaints. Bottlenecks in procurement Because of the rain season, duration of work realization is prolonging from 3 to 4 months during the year. Since operations on internal financing can not begin early in the year, all budgetary authorizations are cancelled and cannot be deferred on the budget of the following exercise. Moreover, procurement plan which must be worked out and submitted in November or December by the administrators of allocations is not often deposited in time (February, March). This sometimes leads to an implementation delay of operations. The Under Technical Commission in charge of evaluation of a contract usually submits lately its report. According to the estimates of the DGMP, the average time with the MAHRH is 134 days for supplies and 338 days for operations financed on the State budget. This time is longer for expenditures financed on external resources because of the time necessary in the event of preliminary opinion of non objection. Procurement system is not very fluid. Companies know before hands criteria of attribution and manage to get approved without having human, material and financial adequate resources to carry out operations within the calendar. These issues are accentuated by the lack of seriousness and firmness of the administration with regard to work completion control. Indicted companies are not often punished. Times for non objection opinions of the PTF lead to important delays. In general, opinion of non objection is required for the approval of DAO and for the report of offers analysis. For certain financial backers, there is a first stage of approval by the Bureau of the financial backer in Burkina and then by the Headquarter. Each of the two stages can last one month, even two or three. For intellectual services, some financial backers have three stages corresponding to successive approvals of the technical offer and the contract project. The circuit of approval and engagement of the contract is too long. These two stages take too much time due multiple rejections of files. There is a nomenclature of supporting documents which accompany the file as well for the engagement of expenditure as for the 50 liquidation and it appears in the information processing system. For approval, visas are very generally numerous. The strong concentration of contract management at the central level is a deceleration factor of the procedure. When decentralized services are directly concerned by a public offer, they are obliged to go to Ouagadougou, one or more times, and this paralyzes their daily activities and consequently, leads to a waste of time and resources. Record of contract on external financing can take two, even three months. Recording contracts on external financing takes too much time and constitutes a major impediment of operation implementation. The weakness of decentralized services of RWSS sector is a big handicap of contracts management and procurement, in particular the follow-up and control of operations. In the DRAHRH, there are no personnel dedicated to RWSS sector. That is one of the causes of non execution or bad execution of services. Control of RWSS public expenditures Internal audit a priori faces many limitations and constraints related to its field of application and scope. Regarding the legal consumption of financial resources, it cannot come to a conclusion about efficiency of expenditures and results. Moreover and until now, the financial controller does not affix his visa on projects operations financed on external resources because they are excluded from the procedure of public expenditures. Thus, flows of external resources for which the MFB is not the originator are not controlled. There are situations where expenditures are directly carried out by the funds financial backer or by a national or foreign execution agency. 1.6 Internal audit a posteriori Internal audit in the ministry of water, ensured by the technical Inspection of MAHRH, is almost inoperative. It should concern: (i) investigations relating to the administrative, technical and financial management and to the control of texts application; (ii) verification of resources utilization and regularity of budget operations; (iii) follow-up of the execution of contracts; and (iv) support council for projects and programs implementation. However, structures’ capacities of control a posteriori do not facilitate effective implementation of activities by administrative services. The external control a posteriori in the MAHRH is ensured by the State General Inspection and the General Inspection of Finances. External control External control is exerted by the Court of Auditors which is part of the judicial power and whose independence is guaranteed by the Constitution. It exerts a control on public accountants (central and regional treasurers, rate collectors, municipal tax collector, and national publicly-owned establishments’ accountants) and on administrators of allocations and expenditure originators. The Court of Auditors has examined the management of public accounts by State’s public accountants and other public organizations from 2001 to 2005. It has also produced and drew up a declaration of conformity, by comparing operating accounts and management accounts. It has submitted finally reports on regulation laws from 1995 to 2005 and produced a 2003-2004 consolidated public report in accordance with the texts in force. 51 1.7 The Parliament Political control is exerted by taxpayers’ representatives on the management of administrative executives: (government, persons in charge of institutions and communities). Appreciation of Government’s action is done by the Parliament whose control is based on the Court of Auditors reports. Parliamentary control is also exerted through the Commission of finances and budget which has the ability to check any document when it judges it necessary. 52