Meeting the challenge of financing water and sanitation : tools and approaches

OECD (2011). Meeting the challenge of financing water and sanitation : tools and approaches. (OECD studies on water). Paris, France, OECD Publishing. 142 p. : 13 fig., 5 tab.
ISBN : 9789264120525 (PDF) ; 9789264120518 (print)
doi: 10.1787/9789264120525-en

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This report provides an overview of key issues related to financing the water and sanitation sector in both developed and developing countries (part 1), and presents tools and approaches developed by OECD for both policy makers and practitioners (part 2).

Part 1 is organised in three chapters. Chapter 1 identifies the investments required to build, operate and maintain the infrastructure for providing sustainable water and sanitation services. It then examines the health, economic and environmental benefits of water supply and sanitation (WSS).

Chapter 2 assesses the current state of WSS and examines investment needs, identifies the financing sources, and estimates the financing gaps to reach internationally agreed targets.

Chapter 3 examines where the money is going to come from, including from a combination of efficiency gains, adjusted targets and additional financial resources; the “3Ts” – tariffs, taxes and transfers; and repayable financing.

In part  2, chapter 4 begins by introducing the tools developed by OECD to address the key financing issues described in part 1.

Chapters 5 to 10 include brief descriptions of the following tools:

  • Strategic Financial Planning for WSS at national or regional level – the FEASIBLE tool
  • Financial planning tool for water utilities
  • Multi-year investment planning tool for municipalities
  • Guidelines for performance-based contracts
  • Water Utility Performance Indicators (IBNET)
  • Private sector participation in water infrastructure – checklist for public action
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