U.S. Agency for International Development (USAID)

	USAID Implements Wide Range of WASH Assistance, with Largest Numbers of Beneficiaries in Middle East and North Africa Region

		Largest Numbers of Beneficiaries Were Reported in USAID’s Middle East and North Africa Region

In fiscal years 2006 through 2009, about 45 percent of reported  beneficiaries of USAID water and sanitation assistance—almost 11 million  of the more than 24 million beneficiaries worldwide—were in the agency’s  Middle East and North Africa region (see fig. 6). Sub-Saharan Africa. Asia and the Pacific. (5.0%) (80.5%)
Water supply, sanitation, and  hygiene (WASH)

		Most USAID Obligations Attributed to Meet Fiscal Year 2009 Appropriations Directive Were for High- Priority Countries

Of the approximately $495 million of fiscal year 2009 obligations that  USAID attributed to meet the overall annual appropriations directive for  WASH activities, about $397 million (80 percent) was obligated in the 31  countries designated as high priority. In June 2008, State announced a joint State-USAID strategic framework for  water and sanitation that, according to State and USAID officials,  represents the current U.S. water and sanitation strategy. Moreover, State has not developed an  estimate of funding needed for the United States to achieve its overall  foreign assistance policy objective. Fiscal years 2008 and 2009. State Began Designating High- Priority Countries in 2008, but Basis of Designations Is Unclear

		State’s Annual Reports to Congress Identify High- Priority Countries

State’s annual reports to Congress in fiscal years 2008 and 2009 identify  countries designated as high priority for water and sanitation assistance,  as required by the Act. 10). In both years,  nearly half of the countries identified as high priority were in USAID’s sub- Saharan Africa region; more than a quarter were in the Asia and the Pacific  region; and one country, Haiti, was in the Latin America and the Caribbean  region. A country’s level and type of need for water and sanitation (specified in  the Act)
Conditions in the country that would support long-term sustainable results  (specified in the Act)
The U.S. comparative advantage, such as level of expertise, relative to that    Opportunities to leverage U.S. foreign assistance through partnerships and  similar mechanisms with other donors and partners   Consistency with U.S. foreign policy priorities    Compliance with statutory directives that affect foreign assistance  According to the joint strategic framework and State’s annual reports,  USAID missions generally consider all of these factors, in consultation  with host governments, in planning for water and sanitation activities as  part of the missions’ overall development portfolios. In addition, State’s  designations are not clearly linked to verifiable analysis. State officials said that they considered USAID mission plans in making  high-priority designations. In addition, the framework and reports do not specify the basis  for State’s designations of high-priority countries. High-Priority Designations Are Not Consistently Associated with Countries’ Need for Water and Sanitation

The designations of high-priority countries in State’s 2008 report are not  consistently associated with data on need for water and sanitation. However, although State has taken steps to develop the water and  sanitation strategy required by the Act, the documents comprising the  strategy—State’s annual reports to Congress and the 2008 joint State- USAID strategic framework—do not include specific and measurable  goals, benchmarks, and timetables for U.S. water and sanitation assistance  or an assessment of needed funding. Recommendations for Executive Action

To enable State to fulfill requirements in the Senator Paul Simon Water for  the Poor Act of 2005, we recommend that the Secretary of State, in  consultation with the Administrator of USAID, take the following two  actions:    Ensure that the U.S. water and sanitation strategy addresses all  components required by the Act, including specific and measurable goals,  benchmarks, and timetables for achieving the U.S. foreign assistance  objective of providing affordable and equitable access to safe water and  sanitation in developing countries. This report  1.  describes USAID’s water and sanitation activities and reported  2.  describes USAID obligations for water and sanitation activities in fiscal  years 2006 through 2009, including obligations attributed to meet  annual appropriations directives in fiscal years 2008 and 2009;  3.  assesses State’s development of a U.S. water and sanitation strategy as  required by the Act; and  4.  examines State’s process for designating high-priority countries as  required by the Act.
Why GAO Did This Study

The Senator Paul Simon Water for the Poor Act of 2005 (the Act) made access to safe water and sanitation for developing countries a U.S. foreign assistance policy objective. The United States provides such assistance mainly through the U.S. Agency for International Development (USAID). The Act requires the Secretary of State to develop a water and sanitation assistance strategy with the Administrator of USAID; designate high-priority countries for assistance; and report annually to Congress on, among other things, implementation of the strategy and progress toward the U.S. policy objective. As requested, in this report GAO (1) describes USAID's accomplishments; (2) describes USAID's obligations of funds for water and sanitation assistance in fiscal years 2006-2009; (3) assesses the Department of State's (State) development of a U.S. water and sanitation strategy; and (4) examines State's designation of high-priority countries. GAO reviewed State and USAID documents and data and obtained the views of State and USAID officials in Washington, D.C., and 15 countries.

What GAO Found

State reported that USAID provided a wide range of water and sanitation activities in 2006 through 2009, such as installing community water taps, building latrines, and constructing major water treatment plants. Nearly 11 million of more than 24 million reported water beneficiaries and nearly 6 million of more than 10 million reported sanitation beneficiaries were in USAID's Middle East and North Africa region. USAID obligations of funds for water supply, sanitation, and hygiene (WASH) activities increased by approximately 82 percent from fiscal year 2006 to 2009, with the majority of funding supporting WASH activities in three USAID regions--sub-Saharan Africa, the Middle East and North Africa, and Asia and the Pacific. In fiscal years 2008 and 2009, about $337 million and $495 million, respectively, of USAID obligations for water and sanitation activities was attributed to meet annual congressional appropriations directives that no less than $300 million be obligated for those years. In fiscal year 2009, about 80 percent of the attributed funds were obligated in countries that State designated as high priority. State has taken steps to develop a water and sanitation strategy. In 2008, State and USAID issued a joint strategic framework that, according to State, largely comprises the broad current U.S. strategy. State also identified its annual water and sanitation reports to Congress in 2006 through 2009 as containing elements of this strategy. However, the strategic framework and annual reports do not include specific and measurable goals, benchmarks, and timetables, which the Act requires and which are needed to measure progress toward achieving the overall U.S. foreign assistance policy objective. Further, State has not provided an assessment--also required by the Act--of funding needed to achieve such goals, benchmarks, and timetables. In fiscal year 2008, State began to designate countries as high priority for water and sanitation assistance, designating 36 countries in 2008 and 31 countries in 2009. Nearly half of these countries were in sub-Saharan Africa and more than a quarter were in Asia and the Pacific. State said that in making the designations, it considered USAID mission plans for water and sanitation activities. In addition, State's annual reports to Congress identify factors that are reflected in the high-priority designations, including two criteria specified by the Act: need for improved access to water and sanitation and the existence of conditions that would support long-term sustainable results. Additional factors reflected in the designations include consistency with U.S. foreign policy priorities and compliance with statutory directives. However, GAO found that State's high-priority designations excluded several countries where USAID had provided water and sanitation assistance and included one country where USAID had not provided such assistance. Moreover, the designations for fiscal years 2008 and 2009 are not linked to verifiable analysis. As a result, the basis for State's designations of high-priority countries is unclear.

What GAO Recommends

GAO recommends that State (1) ensure that the strategy for U.S. water and sanitation assistance addresses all requirements, including goals and benchmarks, and (2) clearly identify, in its mandated reports, the basis for its designations of high-priority countries. State accepted GAO's recommendations.