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Book Details
Abstract
The investments needed to deliver sustainable water and sanitation services, including the funds that are needed to operate and maintain the infrastructure, expand their coverage and upgrade service delivery to meet current social and environmental expectations, are huge. Yet, most systems are underfunded with dire consequences for water and sanitation users, especially the poorest. Providing sustainable drinking water supply and sanitation services requires sound financial basis and strategic financial planning to ensure that existing and future financial resources are commensurate with investment needs as well as the costs of operating and maintaining services.
Some of the key messages of this report are:
- WSS generate substantial benefits for the economy
- Investment needs to generate these benefits are large in both OECD and developing countries
- Tariffs are a preferred funding source, but public budgets and ODA will have a role to play, too
- Markets-based repayable finance is needed to cover high up-front capital investment costs
- Strategic financial planning and other OECD tools can help Governments move forward
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover\r | Cover | ||
| Table of contents | 7 | ||
| Abbreviations and acronyms | 11 | ||
| Executive summary | 13 | ||
| WSS generate substantial benefits for the economy | 13 | ||
| Investments needed to generate large benefits in both OECD and developing economies | 14 | ||
| Tariffs are a preferred funding source, but public budgets and ODA will also have a role to play | 15 | ||
| Market-based repayable finance is needed to cover high up-front capital investment costs | 18 | ||
| Strategic financial planning can help governments move forward | 19 | ||
| Introduction | 21 | ||
| Overview | 21 | ||
| Structure of the report | 22 | ||
| Note | 23 | ||
| Part I:\rKey issues with respect to financing water and sanitation | 25 | ||
| Chapter 1:\rWhat are the benefits of investing in WSS? | 27 | ||
| 1.1. Identifying necessary investments in WSS | 28 | ||
| What investments are needed? | 28 | ||
| Who is responsible for investing? | 30 | ||
| 1.2. Estimating the benefits of investing in WSS | 31 | ||
| Notes | 39 | ||
| Chapter 2:\rCurrent status of WSS and investment needs | 41 | ||
| 2.1. Current status and investment needs in OECD countries and transition economies | 42 | ||
| 2.2. Overview of investment needs in developing countries: Reaching the MDGs | 45 | ||
| Notes | 49 | ||
| Chapter 3:\rWhere is the money going to come from? | 51 | ||
| 3.1. Reducing costs and improving efficiency | 53 | ||
| 3.2. Closing the gap: A combination of the 3Ts | 56 | ||
| 3.2.1. Increasing revenues: Tariffs | 57 | ||
| 3.2.2. Increasing revenues: Taxes | 59 | ||
| 3.2.3. Increasing transfers (i.e. Official Development Assistance and philanthropic donations)\r | 61 | ||
| 3.3. Bridging the gap: Tapping repayable sources of funding | 64 | ||
| 3.4. Mobilising the private sector | 73 | ||
| 3.5. Using strategic financial planning | 79 | ||
| Notes | 84 | ||
| Part II:\rA toolbox to support effective water and sanitation policies | 87 | ||
| Chapter 4:\rIntroduction to the toolbox | 89 | ||
| Chapter 5:\rStrategic Financial Planning for WSS at national or regional level – the FEASIBLE tool | 93 | ||
| 5.1. Background and rationale | 94 | ||
| 5.2. Description of the Strategic Financial Plan process and the FEASIBLE tool | 95 | ||
| 5.3. Where has it been applied? | 98 | ||
| 5.4. Lessons learned and the way forward | 98 | ||
| 5.5. How to get started? | 101 | ||
| Chapter 6:\rFinancial planning tool for water utilities | 103 | ||
| 6.1. Background and rationale for developing the tool | 104 | ||
| 6.2. Description of the tool | 105 | ||
| 6.3. Where has it been applied? | 106 | ||
| 6.4. Lessons learned and the way forward | 107 | ||
| 6.5. How to get started | 108 | ||
| Chapter 7:\rMulti-year investment planning tool for municipalities | 109 | ||
| 7.1. Background and rationale for developing the tool | 110 | ||
| 7.2. Description of the tool | 110 | ||
| 7.3. Where has it been applied? | 112 | ||
| 7.4. Lessons learned and the way forward | 112 | ||
| 7.5. How to get started | 112 | ||
| Chapter 8:\rGuidelines for performance-based contracts | 115 | ||
| 8.1. Background and rationale | 116 | ||
| 8.2. Description of the tool | 116 | ||
| 8.3. Where has it been applied? | 118 | ||
| 8.4. Lessons learned and the way forward | 120 | ||
| 8.5. How to get started | 120 | ||
| Chapter 9:\rWater Utility Performance Indicators (IBNET) | 123 | ||
| 9.1. Background and rationale | 124 | ||
| 9.2. Description of the tool | 125 | ||
| 9.3. Where has it been applied? | 126 | ||
| 9.4. Lessons learned and the way forward | 126 | ||
| 9.5. How to get started | 127 | ||
| Chapter 10:\rPrivate sector participation in water infrastructure – checklist for public action | 129 | ||
| 10.1. Background and rationale for developing the tool | 130 | ||
| 10.2. Description of the tool | 130 | ||
| 10.3. Where has it been applied? | 131 | ||
| 10.4. Lessons learned and the way forward | 133 | ||
| 10.5. How to get started | 134 | ||
| Notes | 135 | ||
| References | 137 | ||
| ORGANISATION FOR ECONOMIC CO-OPERATION\rAND DEVELOPMENT | 143 |