Tag Archives: sanitation financing

Facilitating Access to Finance for Household Investment in Sanitation in Bangladesh

Facilitating Access to Finance for Household Investment in Sanitation in Bangladesh, August 2016. World Bank.

Approach to Blended Finance: The provision of an output-based aid (OBA) subsidy to microfinance institutions (MFIs) in Bangladesh is used to help MFIs develop sanitation products and extend their reach to poorer households.

Microfinance (the provision of financial services to low-income people) is emerging as a viable avenue to facilitate increased access to finance for households to water and sanitation products, and for small-scale water service providers’ business development.

OBA is a form of results-based financing where subsidies are paid to service providers based on verification of pre-agreed water and sanitation project targets defined during project design, thereby offering a strong incentive for the delivery of results.

Combining an OBA subsidy with a microfinance loan helps reduce households’ cash constraints by spreading repayment over time, and makes investment in improved sanitation more affordable overall.

 

Financial indicators for water and sanitation at national level: what do we really need to know and early warning system

Financial indicators for water and sanitation at national level: what do we really need to know and early warning system | Source: Catarina Fonseca, IRC Blog, April 18 2016 |

This blog is meant to support those efforts by answering the question: What indicators can be used as a diagnostic tool for the adequacy of budgets and financial flows for water and sanitation?

The current proposed SDG indicator framework will mainly track outcomes: the number of people with access to water and sanitation services. That is what ultimately matters but it is also an indicator that only gives off a ‘late’ alarm. If a country is not showing much progress on access to services yet, it will take several years to address the root causes of the problem. See the blog 15 years to make history, 5 years to make change.

This is the reason why it is also important to track inputs into the sector, particularly money, which can give off an ‘early’ alarm. If for example, analyses show that the funds available for water and sanitation are too little to address financial gaps, it can be addressed much earlier, before it translates into stagnating or lower coverage figures (see for instance Uganda and Tanzania as examples).

Tracking financial indicators does not require sophisticated monitoring systems

The key question is then which financial indicators to track and what level of detail and break-down is needed. This is what was discussed at a recent sector meeting organised by UNICEF and where the inspiration to write this blog comes from.

Tracking financial indicators does not require a sophisticated monitoring system. In my experience, it is perfectly possible to collect this information from secondary sources if there is some openness in sharing government financial flows on water and sanitation. However, it does require a system that is tracking government expenditure at different levels. This is already the case in most public administrations in lower income countries.

The problems emerge in the reconciliation of accounts, the level of disaggregation of data and most important for the water sector: linking the money flowing into the sector with the number of people accessing a decent service. See some examples in the testing phase of the WHO TrackFin methodology in three countries in this flyer.

Read the complete article.

African Government investment in sanitation: 2016 state of play

African Government investment in sanitation: 2016 state of play: Finance Brief 9, 2016.  Public Finance for WASH. logo

In May 2015, African leaders committed to budget allocations amounting to 0.5% of their countries’ respective Gross Domestic Product (GDP) to sanitation and hygiene by 2020.

Specifically, this commitment was part of the Ngor Declaration adopted at the fourth African Conference on Sanitation and Hygiene (AfricaSan) by ministers responsible for sanitation and hygiene.

This brief explores the context of this commitment: how much are governments currently investing in sanitation? How can this investment be increased?

Umande Trust Sanitation Payment Innovations

Umande Trust Sanitation Payment Innovations being used at the Bio-Centers within the Urban Informal settlements.

Sanitation financing models for the urban poor – new IRC thematic overview paper

Sijbesma, C., 2011. Sanitation financing models for the urban poor. (Thematic overview paper ; 25).  The Hague: IRC International Water and Sanitation Centre
120 p. : 44 boxes, 1 fig., 4 tab.
Includes references, glossary and lists of resources.
Available at: <http://www.irc.nl/top25>

The provision of sanitation services in low-income urban areas is one of the greatest challenges in development. Population growth in developing countries currently outpaces sanitation growth, especially in urban areas. Consequently, in urban areas where poor people reside, and where “formal” sanitation services are not available to them, they experience the compounded effect of serious economic disadvantages such as high risk to public health; a dirty and contaminated environment; no basic human dignity and safety for a large part of the world’s population, especially for adolescent girls and women.

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Meeting the challenge of financing water and sanitation : tools and approaches

OECD (2011). Meeting the challenge of financing water and sanitation : tools and approaches. (OECD studies on water). Paris, France, OECD Publishing. 142 p. : 13 fig., 5 tab.
ISBN : 9789264120525 (PDF) ; 9789264120518 (print)
doi: 10.1787/9789264120525-en

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This report provides an overview of key issues related to financing the water and sanitation sector in both developed and developing countries (part 1), and presents tools and approaches developed by OECD for both policy makers and practitioners (part 2).

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Sanitation costs and financing – presentations at IRC’s 2010 Symposium

The following papers on sanitation costs and financing were presented at the IRC Symposium 2010, ‘Pumps, Pipes and Promises: Costs, Finances and Accountability for Sustainable WASH Services’, held in The Hague from 16-18 November.

The economics of sanitation initiatives (ESI) for sanitation decision making in Southeast Asia. Author: Guy Hutton

This presentation discusses cost data from 5 Southeast Asian countries in various forms (by technology, by site/project, by hardware/software, by financing source, by timing, and under different infrastructure capacity use levels) to aid decision makers in intervention selection and to draw more general lessons about sanitation financing, efficiency and sustainability. Cost data were triangulated from household surveys, project or provider documents and local market surveys to estimate investment and annualized life cycle costs per household and per individual.

Full paper

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