Publication:
Capital Subsidies Implicit in Concessional Finance : How to Make Them More Transparent and Better Targeted

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dc.contributor.authorKingdom, William
dc.contributor.authorBaeumler, Axel
dc.contributor.authorGuzman, Alfonso
dc.date.accessioned2013-03-27T16:57:22Z
dc.date.available2013-03-27T16:57:22Z
dc.date.issued2012-02
dc.description.abstractMultilateral Development Banks (MDBs) finance a significant share of developing country water sector investments in Vietnam. Much of this financing is concessional and often on-lent by national governments, at similar concessional terms, to water utilities. This concessionality carries an implicit subsidy, i.e., the difference between MDB financing terms and commercial financing terms priced more in line with the underlying credit risks. As such concessional financing is most often used for capital investment projects, the implicit subsidy can be considered a capital subsidy. This working paper asks whether there is an opportunity to increase the value of concessional financing for water sector investments by making implicit capital subsidies more explicit and targeting them to a clearly defined public policy objective. Specifically, the paper (i) considers the extent to which implicit subsidies exist in MDB lending for the water sector; (ii) identifies a possible approach to quantify the amount of subsidies involved; (iii) outlines an emerging framework to make subsidies more explicit as a basis for improved targeting; and (iv) discusses operational implications. By investigating these issues, the paper intends to be a first step for governments and donors to evaluate how best to use the implicit capital subsidies provided by concessional financing in the water sector. The paper also suggests areas of future research.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/02/16350069/vietnam-capital-subsidies-implicit-concessional-finance-make-more-transparent-better-targeted
dc.identifier.doi10.1596/12977
dc.identifier.urihttps://hdl.handle.net/10986/12977
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY
dc.subjectACTUAL COST
dc.subjectAFFORDABILITY
dc.subjectBANKING RELATIONSHIPS
dc.subjectBANKS
dc.subjectBENCHMARK
dc.subjectBENCHMARKS
dc.subjectBENEFICIARIES
dc.subjectBOND ISSUANCE
dc.subjectBOND YIELD
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectCAPITAL COST
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL INVESTMENTS
dc.subjectCAPITALIZATION
dc.subjectCASH FLOW
dc.subjectCASH FLOWS
dc.subjectCASH TRANSFERS
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANKING
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL LENDERS
dc.subjectCOMMERCIAL LENDING
dc.subjectCOMMERCIAL LOAN
dc.subjectCOMMERCIAL TERMS
dc.subjectCONSUMERS
dc.subjectCREDIT RISKS
dc.subjectCREDITS
dc.subjectCROSS SUBSIDY
dc.subjectDEBT
dc.subjectDEBT SERVICE
dc.subjectDEBT SERVICE PAYMENTS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT BANK
dc.subjectDEVELOPMENT BANKS
dc.subjectDIRECT PAYMENTS
dc.subjectDISBURSEMENT
dc.subjectDISBURSEMENTS
dc.subjectDISCOUNT RATE
dc.subjectDOMESTIC CAPITAL
dc.subjectDONOR FUNDS
dc.subjectELIGIBILITY CRITERIA
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPLICIT SUBSIDY
dc.subjectFEDERAL GRANTS
dc.subjectFEDERAL TAX
dc.subjectFINANCE MINISTRIES
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCING SOURCES
dc.subjectFIXED SUBSIDY
dc.subjectFUTURE RESEARCH
dc.subjectGOVERNMENT BOND
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT POLICIES
dc.subjectGOVERNMENT REGULATION
dc.subjectGRACE PERIOD
dc.subjectGRACE PERIODS
dc.subjectHOUSEHOLDS
dc.subjectIMPLICIT SUBSIDIES
dc.subjectIMPLICIT SUBSIDY
dc.subjectINCOME TAX
dc.subjectINSTRUMENT
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTEREST RATES ON LOANS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINVESTMENT PROJECTS
dc.subjectLACK OF TRANSPARENCY
dc.subjectLENDER
dc.subjectLEVELS OF ACCESS
dc.subjectLOAN
dc.subjectLOAN AGREEMENT
dc.subjectLOAN PRINCIPAL
dc.subjectLOAN PROCEEDS
dc.subjectLOAN REPAYMENT
dc.subjectLOAN REPAYMENTS
dc.subjectLOAN TERMS
dc.subjectLOCAL GOVERNMENTS
dc.subjectMATURITIES
dc.subjectMATURITY
dc.subjectMDB
dc.subjectMINISTRIES OF FINANCE
dc.subjectMULTILATERAL DEVELOPMENT BANKS
dc.subjectMUNICIPAL BONDS
dc.subjectMUNICIPALITIES
dc.subjectNEGATIVE EXTERNALITIES
dc.subjectOPERATING EXPENDITURES
dc.subjectOPPORTUNITY COST
dc.subjectOPPORTUNITY COSTS
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPRESENT VALUE
dc.subjectPRESENT VALUE OF DEBT
dc.subjectPRIVATE SECTOR FINANCING
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC POLICY
dc.subjectREPAYMENT
dc.subjectREPAYMENT PERIOD
dc.subjectREPAYMENT PERIODS
dc.subjectRETURN
dc.subjectREVOLVING FUND
dc.subjectREVOLVING FUNDS
dc.subjectRISK PREMIUMS
dc.subjectRISK PROFILE
dc.subjectSUBSIDIARY
dc.subjectSUBSIDY PAYMENTS
dc.subjectTARGETED SUBSIDIES
dc.subjectTARGETED SUBSIDY
dc.subjectTAX EXEMPT
dc.subjectTAX EXEMPT MUNICIPAL BONDS
dc.subjectTAX EXEMPTION
dc.subjectTAX-EXEMPT
dc.subjectTRANSPORT
dc.subjectTRUST FUND
dc.subjectUSER FEES
dc.subjectVALUE ADDED
dc.subjectWATER SUPPLY
dc.titleCapital Subsidies Implicit in Concessional Finance : How to Make Them More Transparent and Better Targeteden
dspace.entity.typePublication
okr.date.disclosure2012-06-08
okr.date.doiregistration2025-05-07T11:33:15.682366Z
okr.doctypeEconomic & Sector Work::Other Financial Sector Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2012/02/16350069/vietnam-capital-subsidies-implicit-concessional-finance-make-more-transparent-better-targeted
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.guid984101468337842322
okr.identifier.externaldocumentum000427087_20120608152605
okr.identifier.internaldocumentum16350069
okr.identifier.report69684
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/08/000427087_20120608152605/Rendered/PDF/696840ESW0P1000dies020170120P100474.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryViet Nam
okr.sectorWater, sanitation and flood protection :: Water supply
okr.themeUrban development :: Municipal finance
okr.topicTaxation and Subsidies
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicMacroeconomics and Economic Growth
okr.unitVietnam Sustainable Development (EASVS)
okr.volume1 of 1
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