Financing Options for the 2030 Water Agenda

The sector is in the process of repositioning itself toward the Sustainable Development Goals (SDGs). Under the Millennium Development Goals (MDGs) the international focus of the water sector was predominantly on increasing access to water supply and...

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Main Authors:	Kolker, Joel Evan, Kingdom, Bill, Trémolet, Sophie, Winpenny, James, Cardone, Rachel
Format:	Brief
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	water SDGs Sustainable Development Goals water supply sanitation access to finance sustainable financing development finance governance private finance
Online Access:	http://documents.worldbank.org/curated/en/846161480490614367/Financing-options-for-the-2030-water-agenda http://hdl.handle.net/10986/25495

id	okr-10986-25495
recordtype	oai_dc
spelling	okr-10986-254952021-05-25T10:54:37Z Financing Options for the 2030 Water Agenda Kolker, Joel Evan Kingdom, Bill Trémolet, Sophie Winpenny, James Cardone, Rachel water SDGs Sustainable Development Goals water supply sanitation access to finance sustainable financing development finance governance private finance The sector is in the process of repositioning itself toward the Sustainable Development Goals (SDGs). Under the Millennium Development Goals (MDGs) the international focus of the water sector was predominantly on increasing access to water supply and sanitation (WSS). With the advent of the SDGs the agenda is much broader covering all aspects of water, water resource management, and irrigation and theirsustainability. The water sector is not well equipped to face these new financing challenges. The sector has historically relied on public financing to meet its investment needs—through domestic and development partner concessional funds and/or lending. Institutionally many parts of the sector are government departments where mobilizing private finance is almost non-existent. Even when they are established as corporate entities, such as some WSS providers, it is rare for them to borrow from commercial lenders due to weak incentives and/or poor creditworthiness. Mobilizing additional concessional funds will help— but will not be sufficient. New sources of concessional finance might be tapped (e.g., climate finance) but the gap cannot be filled simply by increasing the volume of concessional funds and lending from governments or development partners. A new sector financing paradigm is required based on four broad themes. The sector has to realign itself around actions that (a) improve sector governance and efficiency (i.e., improving creditworthiness), (b) crowd in or blend private finance (i.e., leveraging capital ), (c) allocate sector resources more effectively to deliver the maximum benefit for every dollar invested (i.e., targeting capital), and (d) improve sector capital planning to reduce unit capital costs (i.e., minimizing capital requirements). Achieving the new financing paradigm requires a more collaborative approach with all stakeholders playing an active role. 2016-11-30T17:56:17Z 2016-11-30T17:56:17Z 2016-11 Brief http://documents.worldbank.org/curated/en/846161480490614367/Financing-options-for-the-2030-water-agenda http://hdl.handle.net/10986/25495 English en_US Water Global Practice Knowledge Brief; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	water SDGs Sustainable Development Goals water supply sanitation access to finance sustainable financing development finance governance private finance
spellingShingle	water SDGs Sustainable Development Goals water supply sanitation access to finance sustainable financing development finance governance private finance Kolker, Joel Evan Kingdom, Bill Trémolet, Sophie Winpenny, James Cardone, Rachel Financing Options for the 2030 Water Agenda
relation	Water Global Practice Knowledge Brief;
description	The sector is in the process of repositioning itself toward the Sustainable Development Goals (SDGs). Under the Millennium Development Goals (MDGs) the international focus of the water sector was predominantly on increasing access to water supply and sanitation (WSS). With the advent of the SDGs the agenda is much broader covering all aspects of water, water resource management, and irrigation and theirsustainability. The water sector is not well equipped to face these new financing challenges. The sector has historically relied on public financing to meet its investment needs—through domestic and development partner concessional funds and/or lending. Institutionally many parts of the sector are government departments where mobilizing private finance is almost non-existent. Even when they are established as corporate entities, such as some WSS providers, it is rare for them to borrow from commercial lenders due to weak incentives and/or poor creditworthiness. Mobilizing additional concessional funds will help— but will not be sufficient. New sources of concessional finance might be tapped (e.g., climate finance) but the gap cannot be filled simply by increasing the volume of concessional funds and lending from governments or development partners. A new sector financing paradigm is required based on four broad themes. The sector has to realign itself around actions that (a) improve sector governance and efficiency (i.e., improving creditworthiness), (b) crowd in or blend private finance (i.e., leveraging capital ), (c) allocate sector resources more effectively to deliver the maximum benefit for every dollar invested (i.e., targeting capital), and (d) improve sector capital planning to reduce unit capital costs (i.e., minimizing capital requirements). Achieving the new financing paradigm requires a more collaborative approach with all stakeholders playing an active role.
format	Brief
author	Kolker, Joel Evan Kingdom, Bill Trémolet, Sophie Winpenny, James Cardone, Rachel
author_facet	Kolker, Joel Evan Kingdom, Bill Trémolet, Sophie Winpenny, James Cardone, Rachel
author_sort	Kolker, Joel Evan
title	Financing Options for the 2030 Water Agenda
title_short	Financing Options for the 2030 Water Agenda
title_full	Financing Options for the 2030 Water Agenda
title_fullStr	Financing Options for the 2030 Water Agenda
title_full_unstemmed	Financing Options for the 2030 Water Agenda
title_sort	financing options for the 2030 water agenda
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/846161480490614367/Financing-options-for-the-2030-water-agenda http://hdl.handle.net/10986/25495
_version_	1764459849098199040

Financing Options for the 2030 Water Agenda

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