Private Financing for Community Infrastructure : Issues and Options
This document examines financing strategies to increase private investment for small-scale infrastructure development within low-income communities. It examines models of local institutions and community-based programs that can sustain financing an...
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| Format: | Publications & Research |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/05/2117741/private-financing-community-infrastructure-issues-options http://hdl.handle.net/10986/19889 |
| Summary: | This document examines financing
strategies to increase private investment for small-scale
infrastructure development within low-income communities. It
examines models of local institutions and community-based
programs that can sustain financing and operation of new
infrastructure once the initial donor financing has ended.
This experience has shown that in the appropriate
environment, low-income communities can manage their own
affairs and finances to create sustainable infrastructures
for themselves. The fundamental components of this enabling
environment include policies that maximize cost recovery by
capturing community willingness to pay, link service levels
to actual cost and make efficient and equitable use of
subsidies. Sustainable infrastructure financing for low
income communities can only work when policies allow the
communities to say what they want to achieve. The private
sector must have the incentives to act on that revealed
demand. Then the government begins to make the critical
transition from being a provider of those infrastructure
services to becoming a facilitator. The programs presented
here are based on the experience of many different community
programs form emerging markets around the world. |
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