Improving Governance & Financing at the River Basin Level

Cap-Net and the International Network of Basin Organizations (INBO) convened a seminar at the Stockholm World Water Week last month to explore issues of performance measurement using indicators in transboundary basins and financing water resources managment  at the basin level.

Experiences from the Senegal River showed that in transboundary basins states tended to concentrate on only one or two issues where they have a heavy stake (such as transport, infrastructure or water quantity). While this made agreement on one set of indicators difficult, it makes the negotiation process as important as the result in that the information products produced from the indicator monitoring, were acceptable to the whole basin and beyond.

Three case studies were presented on financing. In Indonesia the RBO, Jasa Tirta I Public Corporation, has increased revenue 700% in the last 20 years. There is evidence from surveys that customer satisfaction is one of the key factors that has resulted in high willingness to pay. In Argentina the RBO (ACUMAR) evolved in response to serious pollution and was given a mandate by a Supreme Court ruling. It is funded from government and loans. Polluters are required to carry out remediation plans but not to pay for pollution. In South Africa, the RBO (Breede Overberg CMA) is financed by charges and general taxes. Institutional uncertainly has hampered the effectiveness of financing because the concept of RBOs managing river basins has not been fully embraced. The cases illustrated the impact of the prevailing national socio-political priorities on water governance at the basin level. This influences the viability of river basin organisations and can severely limit the opportunity to use financial and economic instruments as a water management tool. Participants concluded that 3 main factors could improve financing: institutional stability and a good governance structure supported by legislation; transparency and accountability; and a clear and full mandate for managing resources.

To download the presentations from the seminar click here. For more information about Cap-Net work on financing water resources management contact Dr Paul Taylor paul.taylor@cap-net.org. For more information on INBOs Key Performance Indicators (KPI) project contact Yannick POCHON y.pochon@oieau.fr