Publication: Private Financing for Community Infrastructure : Issues and Options
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2002-05
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2014-08-29
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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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“World Bank. 2002. Private Financing for Community Infrastructure : Issues and Options. © http://hdl.handle.net/10986/19889 License: CC BY 3.0 IGO.”
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