Introducing Commercial Finance into the Water Sector in Developing Countries

This guidance note provides an introduction to the role of commercial finance in the water and sanitation sector. Its aim is to help readers (development specialists) explore applications in their own countries. The note focuses primarily on commer...

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Main Author: Bender, Kevin
Format: Report
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/423121488451451957/Introducing-commercial-finance-into-the-water-sector-in-developing-countries
http://hdl.handle.net/10986/26187
id okr-10986-26187
recordtype oai_dc
spelling okr-10986-261872021-05-25T10:54:41Z Introducing Commercial Finance into the Water Sector in Developing Countries Bender, Kevin WATER FINANCE POLICY CONSERVATION water resources management commercial finance business environment blended financing government policy debt financing risk mitigation loan structure debt servicing monitoring and evaluation This guidance note provides an introduction to the role of commercial finance in the water and sanitation sector. Its aim is to help readers (development specialists) explore applications in their own countries. The note focuses primarily on commercial bank loans, and throughout the document the term commercial finance refers to commercial loans from domestic banks. However, much of the guidance could be applicable to debt capital market financing for water. While there is some research available on accessing international private finance for water infrastructure, the literature on facilitating local domestic finance (raised in local currency from local banks or lenders) is limited. This note aims to fill the gap and to present a process to readers who are not financial specialists and who may be unfamiliar with commercial banking. The target audience for this note is development specialists and local practitioners working in water and sanitation service delivery who want to explore the possibility of introducing access to commercial finance to service providers in their country. The note also provides guidance that may be helpful to other local stakeholders involved in or contemplating various phases of building a commercial finance market. Readers who are less familiar with lending and infrastructure finance may wish to start with the appendix B on commercial finance basics. The note takes a holistic sector approach to the introduction of commercial finance, targeting the three key stakeholders: borrowers, lenders, and government entities. This note covers a four-phase framework: (i) Phase I: Scoping the Market; (ii) Phase II: Designing and Building the Market; (iii) Phase III: Executing the Deal; and (iv) Phase IV: Monitoring and Evaluating Deal Success. 2017-03-02T17:48:50Z 2017-03-02T17:48:50Z 2017-02 Report http://documents.worldbank.org/curated/en/423121488451451957/Introducing-commercial-finance-into-the-water-sector-in-developing-countries http://hdl.handle.net/10986/26187 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
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
FINANCE
POLICY
CONSERVATION
water resources management
commercial finance
business environment
blended financing
government policy
debt financing
risk mitigation
loan structure
debt servicing
monitoring and evaluation
spellingShingle WATER
FINANCE
POLICY
CONSERVATION
water resources management
commercial finance
business environment
blended financing
government policy
debt financing
risk mitigation
loan structure
debt servicing
monitoring and evaluation
Bender, Kevin
Introducing Commercial Finance into the Water Sector in Developing Countries
description This guidance note provides an introduction to the role of commercial finance in the water and sanitation sector. Its aim is to help readers (development specialists) explore applications in their own countries. The note focuses primarily on commercial bank loans, and throughout the document the term commercial finance refers to commercial loans from domestic banks. However, much of the guidance could be applicable to debt capital market financing for water. While there is some research available on accessing international private finance for water infrastructure, the literature on facilitating local domestic finance (raised in local currency from local banks or lenders) is limited. This note aims to fill the gap and to present a process to readers who are not financial specialists and who may be unfamiliar with commercial banking. The target audience for this note is development specialists and local practitioners working in water and sanitation service delivery who want to explore the possibility of introducing access to commercial finance to service providers in their country. The note also provides guidance that may be helpful to other local stakeholders involved in or contemplating various phases of building a commercial finance market. Readers who are less familiar with lending and infrastructure finance may wish to start with the appendix B on commercial finance basics. The note takes a holistic sector approach to the introduction of commercial finance, targeting the three key stakeholders: borrowers, lenders, and government entities. This note covers a four-phase framework: (i) Phase I: Scoping the Market; (ii) Phase II: Designing and Building the Market; (iii) Phase III: Executing the Deal; and (iv) Phase IV: Monitoring and Evaluating Deal Success.
format Report
author Bender, Kevin
author_facet Bender, Kevin
author_sort Bender, Kevin
title Introducing Commercial Finance into the Water Sector in Developing Countries
title_short Introducing Commercial Finance into the Water Sector in Developing Countries
title_full Introducing Commercial Finance into the Water Sector in Developing Countries
title_fullStr Introducing Commercial Finance into the Water Sector in Developing Countries
title_full_unstemmed Introducing Commercial Finance into the Water Sector in Developing Countries
title_sort introducing commercial finance into the water sector in developing countries
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/423121488451451957/Introducing-commercial-finance-into-the-water-sector-in-developing-countries
http://hdl.handle.net/10986/26187
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