Financing Basin Development at Municipal Level (Localized Blue Peace)
Whit this contribution, Switzerland catalyses the set-up of a technical assistance facility, managed by the United Nations Capital Development Fund. Based on Swiss experience, municipalities in developing countries are supported in managing innovative water-related multi-sector projects in the context of wider basin development (localized Blue Peace). Inclusive economic development based on a self-sustaining financing model will be enhanced.
Employment & economic development
Water diplomacy and security
- Foreign private sector North
- United Nations Capital Developoment Fund
Sector according to the OECD Developement Assistance Commitiee categorisation OTHER MULTISECTOR
GOVERNMENT AND CIVIL SOCIETY
WATER SUPPLY & SANITATION
Sub-Sector according to the OECD Developement Assistance Commitiee categorisationUrban development and management
Decentralisation and support to subnational government (incl. accountability)
Water sector policy and administrative management
Cross-cutting topics Crisis prevention
Aid Type Basketpooled multi-donor fund
Mandate without fiduciary fund
|Background||Cooperation on water leading to stability and peaceful societies allows using water to trigger cooperation in other fields and forms. Population growth and mobility, rapid urbanization and industrial expansion are putting more and more pressure on water supplies, often exacerbated by climate change. Connecting municipalities into basin-wide planning allows for systemic change and unfolding needs and opportunities for municipalities and local actors in the basin. The investment requirement is huge for projects which are integrated into local planning based on the reality of the respective basin and politically supported by local actors. However, there is often a lack of sufficient technical capacities at the local level to design innovative projects with a sustainable financing mechanism.|
Enhance sustainable economic development and peaceful societies by creating new and additional ways to access financial capital at municipal level for municipal projects, as part of a wider basin development.
Strengthened municipalities in the context of regional sustainable basin development to foster peaceful societies in alignment with the 2030 Agenda and the Paris Agreement.
Municipalities and local governments, countries / governments, citizens (incl. women and young people), civil society, private sector (local private sector)
End beneficiaries: people living in the river basins and municipal environment, including local entrepreneurs, women and youth in particular, via multiple uses of water, e.g. to service the municipal market, for fishing providing employment and income, for irrigation, for drinking etc. All of these uses being connected to the sustainable shared management of the water source (the river or aquifer).
· Increased capacity of municipalities and local governments (with initial cases in the Senegal and Gambia river basins) through access to sustainable sources of additional (capital) financing for projects, using water as an entry point;
· Enhanced enabling environment for sustainable sub-national finance ecosystem, including blended finance;
· Established pipeline of projects proposals nourishing revenue generating investments based on multi-sectoral negotiated master-/investment plans;
· Awareness raised around the connection of municipalities to the source of water and basin via innovative approaches of impact monitoring, reporting and communication;
- Increased ownership and legitimacy by bringing the municipal voice into the global dialogue (elevator).
· 5-10 municipalities and local governments (with first cases in the Senegal and Gambia river basins) received capacity building support and trainings of its personnel to address key local sustainable water-related development challenges, local government finance and how to create sustainable financing solutions (incl. revenue-generating investments);
· Established pipeline of investment ready projects proposals nourishing revenue generating investments based on multi-sectoral locally negotiated master-/investment plans and add value to local economies, communities and the environment;
· Sustainable development and peace impact monitoring and reporting system for the local level is developed (aligned with SDGs and a Blue Peace Initiative/Index/Standard);
- Knowledge exchange and advocacy into global policy dialogue (elevator approach).
Results from previous phases:
1. The regional basin-wide planning and development perspective along transboundary basins, notably in West Africa, have led to the identification and opening up of market and other opportunities at the local and municipal level with benefits for the population living in the basin through job creation and innovation (peace dividend, localized Blue Peace). Investment requirements at the local level are huge, but there is no access to finance and projects are not investment-ready.
2. Covid-19 recovery as an opportunity: local development finance is becoming even more important in the context of Covid-19 as the sub-national fiscal space has shrunk considerably while municipalities and local communities are the ones to cope with the pandemic and its consequences. In this context, development partners’ efforts support to diversifying financing options to support projects strengthening the resilience of municipalities in becomes more important than ever.
|Directorate/federal office responsible||
United Nations Organization (UNO)
|Coordination with other projects and actors||municipalities, basin organizations, national, regional and multilateral development banks, Blue Peace Index, Blue Peace Initiatives; Pôle Eau Dakar, GWH; UNECE Water Convention, IUCN, Earth Security, Mayors Migration Council (MMC).|
|Budget||Current phase Swiss budget CHF 6’050’000 Swiss disbursement to date CHF 4’650’000|