Financing the Water Sector


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Financing the Water Sector


* Low investment climate in EECCA region
  • Question of Water Pricing:

- Currently too low Tariffs, not covering even Maintainance & Operation (M&O);

- In South Africa, first 30 L / capita / day are free of charge --> idea of a progressive tariff structure.

  • But WHO calculated that the social return in investment into the water sector is 13:1 (if externalities are internalized).
  • Need for small local banks (for investments in rural areas) -> through NGOs?
  • Soviet Legacy: Over-sized systems, heavy metal, huge losses
  • Subsidizing should go to output (connection), not the input (pipes)
  • Needed Water Sector reform is not only about tariffs
  • Blending funds (loans and grants); criteria needs to be adjusted that this works (Vanessa Celosse)



See also


External Resources


 Sectoral reforms for sustainable financing of water and wastewater services - GTZ.doc

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