Rethinking the Role of River Basin Organizations. Facilitating Investment and Development

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1 Rethinking the Role of River Basin Organizations Facilitating Investment and Development

2 The transboundary dimension of the Water, Energy and Food Security Nexus, with particular emphasis on the challenges that rapid human made developments and environmental change pose to the sustainable management of transboundary river basins International institutions and their role in ensuring the joint, cooperative and sustainable management of shared natural resources, with a particular emphasis on strengthening the role of river basin organizations in the management of shared river basins POLICY GOVERNANCE PERSPECTIVES

3 Policy Governance Transboundary Dimension Through RBOs (but not always) The evolution of RBOs Does it work? Why? Could we reconsider the model RBO, what they do and their priorities?

4 States required to allocate resources for production and consumption (National Agenda) Since international law is too general we have RB agreements and RBOs Currently 18 in Africa, 17 in Asia, and 22 in South America with some form of an RBO. Increasing international support

5 Evolution of RBOs 1. Agreements and/or institutional arrangements that only pertain to the physical river. Single issue such as navigation, security, information sharing, and pollution control. There is no allocation of resources in these agreements. 2. Agreements and institutions that are established to manage and oversee specific resource allocation agreements or joint infrastructure management agreements. 3. Agreements and requisite RBOs that have the mandate to execute/propose Integrated River Basin Management.

6 A river is a classic case where pursuit of interests defined in individual national agendas would lead to an outcome that is not socially optimal IRBM (IWRM) is the best approach efficient sustainable equitable and Allows benefit sharing

7 National Agendas Cooperative Agenda Sadoff & Grey, (2005)

8 However RB Agreements requires a country to forgo a certain level of sovereignty. Curtails national agenda. All are not equal real politik Open ended planning requirements delay investments Mismatch with state (national) priorities The river is but just one part in inter state diplomacy Often RBOs are circumvented (at worse considered irrelevant)

9 How do we set up a relevant TB policy governance framework that promotes real socio economic development? Most agree that RBOs are essential in many contexts shift focus from joint planning and management to the identification and promotion of multi sector investment opportunities in an IWRM context Adaptive management: towards an evolving iterative process to promote investments. The RBO could continuously assess and promote a portfolio of joint investment opportunities for the basin.

10 Coordinated operation of existing infrastructure including dams and hydropower facilities to increase the quantity and efficiency of power generated The establishment of regional power pools and power markets. Facilitating the investment and the coordination of new infrastructure development. Development of the irrigation sector through unilateral or cooperative implementation of projects. The maintenance and enhancement of natural fisheries and the development of aquaculture opportunities. The establishment of tourism including eco tourism zones.

11 Enabling Env Mangmnt Instrument s Institutions Investment led Growth Ecological Integrity Economic Efficiency Social Equity

12 The new RBO Old Management and regulatory Water Management Pros lead Investment Pros not involved Led by NRM Ministries Less Private Sector Involvement New Investments Env/NRM/Social pros support Investment Pros lead Led by Finance/planning Ministries Private Sector has significant role

13 The RBO acts similar to an Investment Promotion Agency in a Special Economic Zone Identify investment opportunities, facilitate negotiations between riparian governments and between governments and investors. on a multilateral or bilateral basis depending the economic and political leverage country can bring to the project. cooperation as an incentive instead of a constraint.

14 The Nexus A Portfolio of Investments

15 Management 17 Investment 0

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