CAMBODIA LAO PDR THAILAND VIETNAM

SUSTAINABLE FINANCING OF TRANSBOUNDARY WATER COOPERATION IN BASINS – CASE OF MRCWORLD WATER WEEK

28 AUG 2019, STOCKHOLM

By Anoulak Kittikhoun and Santi Baran

MEETING THE NEEDS KEEPING THE BALANCE

FUND CONTRIBUTION OPTIONS

• In-kind / monetary Contribution

• Fixed % • Example:

• Criteria Base Formula• Example:

1. Average flow (m3/s)

2. Irrigated area (million ha)

3. Population (million)

4. Per capita GDP (US$)

5. Catchment area (km2)

• Fisheries

• Water use

• Investment

• Equal Contribution• Example: 25% each

20% 20% 30% 30%= 100%

MEETING THE NEEDS KEEPING THE BALANCE

MRC DEVELOPMENT

Established Basket Fund

2016

$65 Million / 5 years

Partly Core Functions60+ Staff

2030

Fully Core Functions50+ Staff

Self-finance

1995

Project

100+ Staff

1995 Mekong Agreement

Organizational Reform

Financial Reform

2000

Programme

$120+ Million / 5 years

DPs funding MCs contributed to

operation cost

200+ Staff

2010

1st MRC SUMMIT

MEETING THE NEEDS KEEPING THE BALANCE

Financial Situation & Organizational Reform

Streamlined arrangements focused on core functions

MRC Secretariat Basket Fund

• Regional technical coordination

• Implementation of the Strategic Plan

• Implementation of the Procedures

• Implementation of Centralised Activities

• Operation CostSTAFFING

(Reducing over time)

2030DEVELOPMENT

PARTNERS

CONTRIBUTION

(Declining over time)

MEMBER

COUNTRIES

CONTRIBUTION

(Increasing over

time)

2000

202640 Staff

Self-Finance

2015

200+

201660+

50+

100+

2016

2015

$65 Million

$120+ Million

2010

1st

SUMMIT 36%100%

64%

2019

MEETING THE NEEDS KEEPING THE BALANCE

Equal Contribution for Member Countries

Agreed option: Contribution percentage move 1% every 3

years from 2019

Basis for Equal Contribution:

• Increasing member country cooperation

• Country experience of MRC implementation

• Rising technical and financial capacity

• Growing economies and populations

• Mutual understanding, ownership and self sustainability

Option 1: Apply the 2015 formula in reversed orderOption 2: Apply the fix ratios (23% Vs 27%)Option 3: with the exception of 2016-2018 will be as below:MCs never missed

payment

MEETING THE NEEDS KEEPING THE BALANCE

Value for Money Tools

High

3

2

1

Low 1 2 3 High

Achievement

Co

st

Cost & Benefit Analysis

Low Valuefor Money

High Valuefor Money

Costly

PoorIntervention

Reduce Cost

Increase Achievement

Reduce Cost & Increase

Achievement

Invest & Implement

• High Disbursement and High Completion: 7 Activities have used most of its budget and completed most of the work. These activities are progressing as planned.

• Low Disbursement and High Completion: 15 Activities have completed most of the work but has a large budget remaining. They have the potential to reallocate their budget to other activities.

• Low Disbursement and Low Completion: 63 Activities have not completed the majority of the work and used little budget. Need attention to urgently accelerate implementation in the next 7 months.

• High Disbursement and Low Completion: 6 Activities have used most of its budget, but the majority of work is not completed. Need attention to seek additional budget to continue work and justify for overspending.

MEETING THE NEEDS KEEPING THE BALANCE

Challenges to Implementation of Fund Contributions

• Late transfer (although never missed). Explore mechanism if missed the deadline.

•Political goodwill to support consensus on the contribution amount• Sudden and/or faster Development Partner withdrawal• Strengthening and maintaining MC commitment and

contribution•Recruiting and retaining expert and skilled staff • Strengthening LA / NMCS / MRCS coordination and working

arrangements•Maintaining the momentum of the reform roadmap

MEETING THE NEEDS KEEPING THE BALANCE

Thank you!

• Encourage national ownership

• Gather information and ideas

• Value Member Country viewpoints

• Blend and integrate ideas for sustainable financing

• Design & agree on a roadmap