BASIN INITIATIVE

FREQUENTLY ASKED QUESTIONS

Q: What is the level of Member States’ commitment to Q: How is NBI work being used by the countries? Nile cooperation? A: Countries use NBI as a platform for joint planning and A: Member States are committed to the Nile cooperation. resource mobilization for example , and This is attested to by the repeated reiteration from high used NBI platform to coordinate them lead resource political leadership that cooperation is the only way to mobilization and now oversee implementation of the sustainable and equitable utilization of the Nile water Rusumo project. In addition countries use NBI resources. Member States have also indicated their as a platform for sharing information; information exchange commitment through in-kind and cash contributions towards on 9 planned measures has been done through the NBI the NBI. The commitments for cash contributions have platform, Member States are able to access data, utilize NBI shown a growing trend since 2006/7 from US $ 540,000 to analytic tools for water resources planning at country level. US $ 1,826,370 in 2013/14. The resumed participation The DSS, developed under the NBI- Shared Vision in NBI activities and was admitted into NBI Program is currently being used to formulate catchment in 2013. This is a demonstration that Member States management plan in . Eight other NBI countries are value the Nile cooperation. It must be recognized that using the DSS in case studies. differences arose at the political level regarding the formal Countries have requested NBI to support them in arrangements for forging a comprehensive framework preparation of bankable projects. For example ENTRO is agreement on the Nile. This has indeed created some providing technical support to Sudan in preparation of obstacles for the technical work undertaken by the NBI. watershed projects. Projects identified and prepared by NBI However, such challenges are not uncommon in the creation have been integrated in national development planning for of such complex agreements. Despite the setback, all example the Gogo falls in , the Muvumba in Rwanda. nine members of the Nile-COM continue to meet to seek a Other States are accessing information through the NBI solution in goodwill. knowledge portals. The NBI policies provide a reference point for best practices in integrated water resources Growth in NBI member countries contribution management and countries use them as reference materials in development of their policies.

Q: With the coming to the end of the NBTF, what mechanism has been put in place to ensure financial sustainability of NBI? And sustainability of results?

A: Ensuring financial sustainability post 2014 is a key issue for the NBI. Member States have committed to increase their country contributions to cover the NBI institutional costs and operate its basic programs and sustain the most important capacities, systems and knowledge that have been developed by 2017. Other strategies to raise funds include NBI providing services to clients at a fee - NBI has expertise in technical analysis and preparation of bankable projects that it will aim to sell to clients as part of the fundraising strategy. Further, NBI will charge 10% overhead

1 costs on all projects managed by the NBI Centers. NBI will dialogue of all riparians irrespective of them being a also continue to engage with development partners both signatory to the CFA or not. An adequate form for this will – new and old to leverage additional program funding. In this come the time – will have to be found. regard, NBI is exploring designing a basket mechanism to complement the Member States funding of NBI’s core costs Q: What are some of the benefits of cooperation thus and to provide funding for the implementation of NBI’s far? What are the largest results of your work to date? program of work. A: The Nile cooperation has helped in transforming the On sustaining results, NBI is working with countries to conversation among the Nile riparians more towards mainstream it’s products in national development planning upstream – downstream mutuality and basin-wide as well as building the capacity of government officials to development. As a result, cooperation has been accepted utilize technical products such as the Nile Basin DSS from as the only alternative to sustainable management of the NB. Nile water resources. The NBI has provided a platform for discussion and understanding of the interests, positions and Lastly, NBI is working through existing government expectations of all riparians in what concerns the utilization departments (not creating parallel structures) to implement (current and future) of the Nile waters resources was its activities at national level. Such activities are often established. embedded in the departments’ plans and budgets. Awareness has been raised that the Nile is a shared resource Q: How does NBI seek to address the funding gap arising and the continuity and interdependence between the between the scheduled increase in country contribution ecosystems, and the need for an integrated approach in until 2017 and the projected core costs from 2014 to order to protect the ‘common goods’ was created 2017? Largest results so far include: A: To Date, NBI has a modest grant from CIWA to fill gaps i. Nurtured inter-riparian cooperation by providing the its country contributions until 2017. Member States are only Nile basin-wide platform for regional dialogue in committed to implement the step wise increase in country trans-boundary water issues; the Nile-COM meetings are contributions as agreed. In addition, the NBI governance has attended by all NBI member states. taken responsibility to formally engage countries to pay up their country contributions and arrears in a timely manner. ii. Facilitated investment projects of regional significance; NBI governance and management are in an intensified identified, prepared or facilitated over US$ 1 billion of resource mobilization campaign and will continue engaging investment under implementation, with an additional US$ donors (old and new) to leverage grant funds to compliment 1 billion under preparation; country contributions. iii. Built a strong technical foundation for cooperative Q: When is the River Nile Basin Commission expected to water resources management and development, come into place? including a comprehensive shared knowledge base on the water and related resources of the Nile as well as tools A: After entering into force of the Cooperative Framework to enable countries understand the implications of their Agreement (CFA) following its ratification (in most countries actions on neighbors and opportunities for managing involving parliaments) and depositing by six countries, risks and realizing tangible benefits. Tools such as the instruments of ratification with the African Union. It is not Nile Basin Decision Support System (NB-DSS) and the certain when this process will be completed. Nile Equatorial Lakes and Eastern Nile Planning Models respectively, have been operationalized to provide the Q: What will happen to NBI if the CFA is ratified and necessary analysis to inform decision-making in water enters into force without the consent of all riparians? resources planning and management; A: The NBI is a transitional mechanism which will be iv. Strengthened institutional foundation: Over the replaced by a permanent platform, the Nile River Basin last decade NBI has grown into a well-established Commission (NRBC). NBI will enter a transitional period of and successful regional institution; with appropriate a least one year, during which details of a new institutional organizational structure, strong financial and operational arrangement will be negotiated. This will also include management systems and effective program & project realignment negotiations of any funding mechanisms with management procedures. the development partners NBI will be committed to at the time. The assets of NBI – both physical and ideal in terms of the wealth of experience and knowledge base will then pass on to the Nile Basin River Commission. Whilst NBI continues to strive for a CFA accepted by all riparian subscribe to, it is NBI’s intent to continue to be a platform for inclusive

2 Q: Why has it taken so long to realize tangible benefits • Increased trust, reduced tension, and a growing on the ground and what action needs to be taken to community of interest across in the Nile Basin. speed up the process? (The NBI has contributed to increased trust among the A: Up until 2012, the NBI implemented the first Strategic Nile riparians; Action Program, which was an agreed upon program At the Subsidiary Action Level, NBI has delivered visible between NBI member states for which funding was obtained benefits in areas of power interconnections (- from member countries and development partners. The Sudan; already implemented through the two countries); primary focus was to put in place an enabling environment enhancing livelihoods of local communities through for investment in water resources in the Nile Basin. Building Watershed Management (Eastern Nile); a number of power the enabling environment was the primary objective of the transmission interconnection and power generation projects Shared Vision Program (completed in 2012) while small scale are at advanced level of preparation and/or beginning of investment projects were implemented (‘low-hanging fruits’) implementation. through the Subsidiary Action Programs. The above provide evidence of tangible benefits realized The SVP has tangibly delivered benefits along all its key through the cooperation. However, it must be recognized as expected outcome indicators (given below): planning of multi-country mega water resources projects • Increased basin-wide dialogue and exchange of is a slow process. NBI processes, by their very nature of information in SVP-related fields, including water, being trans-boundary requiring consultation and consensus environment, power, agriculture, training, stakeholder among countries, taking into consideration all interests, are involvement and communication, and macroeconomics. long-drawn, particularly when it comes to the identification, preparation and implementation of large scale cooperative • Functioning networks of professionals in SVP-related investment projects. Securing financing for project fields implementation takes a long time. (More than any time in the history of the Nile cooperation, Q: What are some of the key challenges that require joint there is a sustained dialogue (through regional working action by the Member States? How can NBI help address groups, networks, project steering committees, technical these challenges? committees that involve professionals from NBI member states) and information exchange among riparians on issues A: Environmental challenges: environmental degradation related to water, environment, power, and agriculture; some (watershed degradation, sedimentation, forest cover of these networks have been maintained post SVP (like the reduction, evasive weed, siltation); NBI will continue DSS user community) while others couldn’t be maintained developing relevant trans-boundary polices and strategies, due to lack of funding; the Nile Basin data and information basin monitoring capacity building for countries. sharing procedures was endorsed by the Nile-COM and Development challenges= inadequate energy and water providing the basis for information and data sharing) storage capacity in the basin to take advantage of the • Enhanced skills, expanded information bases, and seasonality in river flow, water scarcity, huge untapped strengthened institutions in SVP-related fields. (The hydropower and potential, extreme events SVP has delivered the Nile Basin Decision Support droughts and flooding, climate change, inadequate data to System (NB DSS), build human and institutional inform decision making, capacity in riparian countries and that of NBI centers, Fragile Nile cooperation, although progress has been made, developed regional database/knowledgebase; a set of the Nile cooperation is still fragile and requires further knowledge portals are continuously providing access to nurturing. Perceptions continue to exist and influence NBI knowledge products; the NB DSS is available in 9 decision making, one member still freezing participation and NBI countries) some stakeholder groups are yet to understand ad commit • Extensive stakeholder participation in the NBI process. to the cooperation agenda. (Extensive stakeholder participation on issues of the NBI works with countries to develop responsive regional Nile cooperation has been achieved, in the form of Nile investment programs–(catchment management, watershed Basin Development Forum (still maintained), through management); promoting water use technologies; the media network, through national NBI offices, promoting regional power development and transmission through project specific consultations, the Nile day, the interconnections and trade and facilitates resource Nile Basin Discourse and many other foras.) mobilization together with countries for its implementation. • Continued progress in the joint identification and Further, NBI continues to provide a platform for dialogue, preparation of cooperative investment programs information and knowledge exchange, joint planning. Build through the Subsidiary Action Programs support for the cooperation through communicating benefits

3 of cooperation and risks of non-cooperation to NBI multi- infrastructure development can be initiated with NBI having stakeholders, (e.g. power purchase agreements, dam safety, no or very little say directly. It is true that Nile cooperation analytical tools, hydro-diplomacy, dialogues). through NBI has never excluded the possibility of unilateral development. However, NBI has identified its niche Meeting growing demands for water: all NBI countries are under current set of conditions to put in place enabling faced with meeting the growing demand for water, food and environment for cooperative water resources development; energy to address the needs of their growing economy and examples are: population – no exception on this. Compared to other large river basins, most sub-basins of the Nile Basin are water • Development of environmental flow guidelines deficit, i.e. there is an overall – water balance. • Formulation of project information disclosure That means, meeting development needs stated above procedures by any country require collaboration with co-riparians. • Generation of knowledge products on strategic water There will be no major development of water resources in issues and making them available to all riparians the Nile Basin that doesn’t require upstream-downstream collaboration. Q: In the absence of the Strategic Dialogue at the end of First, cooperation is required for efficient use of water at the NBTF, is there any plan to coordinate NBI donors and sub-basin or basin-wide level. Development plans formulated ensure information flow? What are the NBI’s plans for without consideration of basin (or sub-basin)-wide donor coordination in the future? opportunities are sub-optimal. A: NBI intends to sustain donor coordination building on the Second, water resources development without taking into broad consultative process with NBI’s development partners account effects of development elsewhere in the basin that has been developed under the Nile Basin Trust Fund. As can have adverse impacts on the aquatic and riverine a forum for coordination and consultation, this will be open ecosystems and the society that depend on the water to all contributing and new partners and will continue to be resources. This can lead to tension and conflict. Nile Basin the main annual consultation event between the NBI, the riparian have come a long way from mistrust and build Nile Basin Countries and the NBI Partners what the strategic mutual confidence over the last 15 years. dialogue mechanism similar to strategic dialogue but this time led by the secretariat. Joint action by countries is required to realize their development aspirations in a sustainable and mutually Q: What is the role of NBI in the various investment beneficial manner. This requires joint planning, putting in projects? place agreed upon policies (such as on environmental flow, A: NBI’s role is to assist member States to identify, managing impacts, etc), joint monitoring of river basin prepare investment projects; mobilize resources for their process to detect changes and building further their shared implementation. In some cases countries may entrust NBI knowledgebase. NBI is delivering along these fronts through to oversee implementation (Rusumo). Capacity building and its programs and this need to be strengthened. technical support including (analysis) for countries during Q: Why are some of the biggest water challenges implementation (DSS support in heightening Rossaires currently facing the countries not being addressed dam) as well working with countries to model and compare by the NBI? What is NBI doing to help address these different scenarios so that the best decision, with least challenges? negative impacts is taken.

A: There is one ‘water challenge’ in the Eastern Nile that is Q: How is NBI assisting the countries to better plan and currently being addressed without involvement by NBI but manage the Nile Basin water resources? involving key national actors in the Nile Basin cooperation. A: NBI is strengthening institutional capacities at national Due to differences that arose along the CFA track, one level to apply analytical tools in country water resources riparian country in the Eastern Nile had already reduced planning; NBI provides a knowledge base, data and its involvement in NBI activities by the time the plan to information necessary to inform decision making, monitors construct a major water infrastructure was made public by the status of the basin based on agreed criteria, facilitates one riparian. Therefore, the three Eastern Nile countries the identification and preparation of investment projects agreed, by the invitation of the riparian country building that are of regional significance, environmentally friendly, the infrastructure to engage with each other involving the socially acceptable and economically viable and provides a co-riparian who is not currently active in NBI. This shows platform for sharing information and joint planning. that countries are interested to get engaged with each other accommodating the interest of their co-riparians.

One fundamental lesson out of this that major water

4 Q: What is the relevance of NBI in sustaining the Nile Q: What is the relevance of a basket funding mechanism cooperation? for NBI?

A: NBI is the only neutral and all inclusive platform for A: The NBI Basket Fund is envisaged as an NBI managed dialogue on Nile issues for all basin States. It provides a pooled funding mechanism from Development Partners for platform for discussion and building a mutual understanding the NBI. It is intended to be a flexible, short term funding among experts from different countries which has helped arrangement (3-5years) to be utilized by the three NBI fostering mutual trust and confidence. NBI brings on board Centres in line with the NBI priorities as outlined in its the basin wide perspective, looking beyond political borders, Strategic Plan and program of work 2012-2017, fully owned to ensure optimization of basin development. NBI assists by the Member States and aligned to the programmatic member states in identification of joint interventions decision making process of the NBI governance mechanism. and mobilizing resources for their implementation. The objective of the planned NBI basket fund is to provide Through these projects on the ground, NBI continues to flexible funding support NBI to enable it achieve its targets demonstrate the multiple benefits of cooperation, thereby and improve its effectiveness. The value addition of the NBI generating support for the cooperation agenda. Further, basket fund thus mainly consists in providing a framework NBI communicates benefits of cooperation and risks of for harmonized support specifically for the Nile Basin non-cooperation among riparians, implements a series Initiative, no additional costs associated with fund manager, of stakeholder involvement activities aimed at creating a hence reduced transaction costs. It will also contribute to stakeholder base for cooperation. further NBI institutional capacity in managing trust funds. In addition development and institutional strengthening NBI provides a structured institutional basis, i.e. not through policy dialogue with Development Partners adhoc. The cooperation is being institutionalized to give it permanence and durability. NBI’s activities, organized in Q: What are the advantages to NBI and difference with three core functions, focus on what matters most to the Nile the CIWA Trust Fund? as a shared resource A: From NBI’s perspective, the advantages of establishing Q: With freezing its participation in NBI activities, a basket fund mechanism for the post NBTF era – besides are there any efforts aimed at ensuring an all-inclusive providing resources for the implementation of the program Nile Cooperation? essentially are: (a) increased predictability of available funding for medium-term planning; (b) increased flexibility of A: Egypt remains part of the NBI, but frozen participation, use of available funding for addressing NBI’s programmatic yet an all-inclusive cooperation is paramount for optimizing priorities; (c) reduction of resource requirements for basin-wide development. NBI member countries are managing development partners’ contributions through continuously engaging Egypt both formally and informally increased development partner alignment with NBI’s to resume participation in the NBI. Member States procedures and harmonization based on the global aid – demonstrated this spirit in appointing an Egyptian Executive effectiveness agenda; (d) continuation of strengthening NBI’ Director (from 2010 to 2012) amidst Egypt’s freezing as an institution and management capacities by moving and nonpayment of its country contributions. Egyptian from a donor managed approach to a recipient managed water experts are working in NBI. Most recently, ENTRO approach. governance wrote requesting Egypt to fill the ENTRO ED position and there was no response. Egypt has been invited On the difference with the CIWA Trust Fund; while the to all NBI meetings. Cooperation on International Waters of (CIWA) administered by the World Bank offers a window of Q: How will the interests of Egypt be accommodated in opportunity for continuity, it differs from the NBTF in a making decisions about NBI’s program? What is being number of ways including scope, focus and implementing done to ensure that the NBI is an inclusive organization modalities. The CIWA Trust Fund is increasingly focusing on for all riparians? investment preparation, an area that is of great importance A: NBI endeavors to take Egypt’s interests into consideration also the NBI. However, NBI in a politically difficult context of informally through engaging with Egyptians from civil Nile Basin cooperation, also needs to sustain its investments society, academia, interns, media and NBI staff. Although in the platform for riparian dialogue that NBI has become. they don’t speak on behalf of the government, they bring This NBI Basket fund is envisaged to place due emphasis the Egyptian perspective to the discussion. NBI continues to on sustaining the less tangible, soft elements of sustaining engage Egypt to come back to the cooperation and Egypt is the Nile cooperation including knowledge management, always invited to participate in the discussions. NBI member facilitating platform for dialogue cooperation and technical states are bound by the principles of international law where analysis, as well as facilitating identification and preparation cooperation on a shared resource is a must not a choice. of bankable investment projects. Furthermore, NBI desires

5 to provide a complementary funding mechanism to the Q: To whom will NBI be accountable on the use of the CIWA Trust Fund to access support of those development funds? partners that have a preference to work directly with NBI and not through the CIWA Trust Fund. With the basket fund, A: NBI Centers are accountable for the implementation of NBI seeks to provide a regular consultation and partnership the NBI Strategic Action Program to the member states mechanism. In the same regard, CIWA doesn’t support through NBI’s governance. NBI will be accountable to the institutional strengthening, yet this is still a key priority area governance and development partners on the use of basket for the NBI. NBI is currently at a critical phase of delivering fund funds through the “basket fund steering group”, details further results and consolidating the gains made over the of which will be further detailed in the JFA. years of its existence; with investment projects moving into Q: How does NBI monitor the impact of its programs? implementation stages and additional project identification in the NEL and EN sub basins ongoing. The period is critical A: Based on both NBI’s high level impact monitoring and requires a strong institution to leverage and facilitate framework (impact indicators) and on the basis of the the Process. As such, the NBI is in urgent need to secure program implementation monitoring (outcome and output continued funding for implementing its programs and monitoring). It will seek to provide a single, consolidated projects so that gains so far made can be sustained and the annual progress and monitoring report in a format to be ongoing program of work is not interrupted by the closure. elaborated and agreed between all development partners. NBI’s monitoring framework will still have to be revised Q: How will the basket be implemented? to adjust to the reduced staff capacities available at NBI A: The basket will be based on a Joint Financing Agreement centers. (JFA) with interested development partners. The basked will be managed and implemented through NBI’s centers. There will be a foreign exchange holding account and an NBI operational account. Disbursements from the holding account will be made on the basis of decisions of a “basket fund steering committee.” A draft of a JFA based on the “Nordic plus” groups recommendation has been drafted as a basis for negotiation with development partners and is available as an additional document.

NILE BASIN INITIATIVE SECRETARIAT Find us on P. O. Box 192 Entebbe – Uganda Tel: +256 414 321 424 / +256 414 321 329 / +256 417 705 000 Fax: +256 414 320 971 #NileCooperation; Email: [email protected] Website: http://www.nilebasin.org #OneNile; #NileBasin

6