Making funds available for the sector is not only critical to extend infrastructure, but also to finance software components, such as building institutional capacity, monitoring, regulation and demand creation. Ensuring efficiency and equity in the use of these funds is also critical, especially in light of limited public funds and the tremendous task of achieving universal and sustainable access to water and sanitation services by 2030. In this context, leveraging funds from the private sector, including from households, and supporting private sector participation in the delivery of water and sanitation services will also prove to be essential, although this will take different forms in different country contexts.
At Aguaconsult, we advise governments, bilateral and multilateral financing organisations and NGOs on optimum financing strategies. We assess the efficiency, sustainability and equity in the use of public funds, and how they could be applied so as to leverage additional funds from the private sector, whether from tariffs or repayable finance.
We assess the use of innovative financing mechanisms, including microfinance and results-based approaches. We also review and advise on contractual arrangements with the private sector, whether in the context of urban utilities, small piped water schemes in rural areas, or decentralized faecal sludge services, with the view to ensure a balanced risk allocation and that the right incentives are in place for performing and equitable services. Specific tasks that we perform in these areas include:
- Projects and portfolio reviews to assess financing strategies;
- Case studies to highlight innovative financing mechanisms, including microfinance, PPPs;
- Market assessments to introduce new financing approaches;
- Life-cycle cost and value-for-money analyses; and
- Project design.
To find out what we are doing in the area of financing and how we can help, contact our financing specialist Goufrane Mansour.