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Water Sector in Small Urban Centres: Analysis of Donor Flows to Water Supply and Sanitation Services

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This paper presents an analysis of Official Development Assistance (ODA) flows to the water and sanitation sector, based on data gathered from the OECD Development Assistance Committee (DAC) and Creditor Reporting Systems (CRS) databases.
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   Water Sector in Small Urban Centres  Analysis of donor ows to water supply and sanitation services Rachel Cardone and Catarina Fonseca UNITED NATIONS HUMAN SETTLEMENTS PROGRAMME UN-HABITAT REPORT ON THE WATER SECTOR IN SMALL URBAN CENTRES: PAPER 2  ii UN-HABITAT REPORT ON THE WATER SECTOR IN SMALL URBAN CENTRES Background paper prepared for UN-HABITAT publication, Meeting Development Goals in Small Urban Centres: Water and Sanitation in the World’s Cities 2006. Copyright © United Nations Human Settlements Programme (UN-HABITAT), December 2006All rights reservedUnited Nations Human Settlements Programme (UN-HABITAT)P.O. Box 30030, GPO Nairobi 00100, KenyaTel: 254 20 7623 120 Fax: 254 20 7624 266/7 (Central Ofce) E-mail: info @ unhabitat.org Website: http://www.unhabitat.org DisclaimerThe designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning delimitation of its frontiers or boundaries, or regarding its economic system or degree of development. The analysis, conclusions and recommendations of this publication do not necessarily reect the views of the United Nations Human Settlements Programme, the Governing Council of the United Nations Human Settle-ments Programme or its Member States.  iii  Table of Contents 1  Introduction i 2 Overview of ODA ows to the water sector 3 2.1 Overview of the DAC 3 2.2 Constraints to tracking donor ows 4 3  Data Analysis 5 3.1 Overall funding for the water sector 53.2 Commitments and disbursements 73.3 Targeting water supply and sanitation investments 8 3.4 Water sector ows relative to other sectors 13 4 Preliminary ndings and topics for further research 25  Learning from other sectors 25 ODA and different country income levels 26 The importance of an MDG-based PRSP 27 Sequencing reform 27 Commitments vs. Disbursements 28  Flexibility of ODA ows 28 Predictability of ODA ows 28  Uses of ODA 28 Allocation and targeting of ODA 29 Looking beyond ODA 29  Other sources of nance 29 References 33  iv 
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