Publication: Achieving Universal Access to Water and Sanitation by 2030: The Role of Blended Finance
Loading...
Date
2016-08
ISSN
Published
2016-08
Author(s)
Editor(s)
Abstract
A substantial increase in sector financing will be necessary to achieve Sustainable Development Goal 6 calling for universal access to safe water and sanitation while addressing issues of water quality and scarcity to balance the needs of households, agriculture, industry, energy, and the environment over the next 15 years. Recent estimates by the World Bank’s Water and Sanitation Program (WSP) indicate that the present value of the additional investment in WSS alone needed through 2030 will exceed US$1.7 trillion (Hutton & Varughese 2016). Existing funding falls far short of this amount; countries may have to increase their investment in the water and sanitation sectors by up to four times in order to meet the SDGs. Where is Financing for the Water SDG Going to Come From?
Link to Data Set
Citation
“Leigland, James; Tremolet, Sophie; Ikeda, John. 2016. Achieving Universal Access to Water and Sanitation by 2030: The Role of Blended Finance. © World Bank. http://hdl.handle.net/10986/25111 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Financing Options for the 2030 Water Agenda(World Bank, Washington, DC, 2016-11)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.Publication Better Use of Capital to Deliver Sustainable Water Supply and Sanitation Services(World Bank, Washington, DC, 2018-11)The costs of meeting the SDG WASH targets will be several times higher than investment levels during the MDG era (2000–15). The immense scale of the financing gap calls for innovative solutions. In addition to mobilizing more funding another approach is to deliver the needed infrastructure more efficiently and effectively and thus reduce the financing gap. Capital expenditure efficiency (CEE)—the efficient and effective use of capital—is less documented compared to operational efficiency. Although improving operating efficiency is frequently highlighted and readily evaluated, the scope for capital cost efficiencies is poorly understood, frequently overlooked, and difficult to evaluate, even though the scale of savings can be significant—in fact, capital and operating costs are equally important when considering full cost recovery. This study compiles case studies that show the "art of the possible" in CEE. The report is not encyclopedic—many more examples could surface from a comprehensive study. It also doesn’t quantify the savings possible through increasing CEE. However, almost all the examples show capital savings of 25 percent or more compared to traditional solutions. This alone this should give policy makers, donors, and utility managers pause for thought and encourage them to develop CEE in their sectors, projects, or utilities. A 25 percent improvement in CEE would allow existing investments to deliver a 33 percent increase in benefits.Publication Aid Flows to the Water Sector(World Bank, Washington, DC, 2016-11)This report provides data and insights on the role of grant funding and concessional financing in meeting the Sustainable Development Goal for water (SDG 6, known as the water SDG). These sources of funding are collectively referred to in this report as aid flows to the water sector. This report was prepared as an input into the High-Level Panel on Water. Data analysis was conducted using two main databases on aid to the water sector. The Organisation for Economic Cooperation and Development Assistance Committee (OECD/ DAC) database is the most comprehensive, while the WASHfunders.org database provides complementary data on aid from philanthropic organizations. These databases were complemented by an inventory of the main institutions providing aid to the water sector, as well as interviews with selected providers of aid to the water sector, including leading multilateral development banks (MDBs), bilateral donor agencies, and international nongovernmental organizations (NGOs). This analysis provides the basis for recommendations on how to improve the aid architecture to the water sector and mobilize financing to achieve the water SDG.Publication An Assessment of Water, Sanitation and Hygiene Access in Bangladesh's Community Health Clinics(World Bank, Washington, DC, 2019-06)Adequate water, sanitation and hygiene (WASH) in health care facilities plays a critical role in ensuring improved health care utilization and reducing disease burden due to reinfection. WASH in health facilities is now gaining momentum with the new SDG targets that governments have vowed to meet. This goal calls for a baseline examination of existing WASH conditions in health facilities. Using data collected through a census of all community health clinics in Bangladesh, this paper presents an analysis of the state of WASH in Bangladesh's rural, public health facilities highlighting that the lack of functionality of WASH facilities is a widespread problem across the country. The paper also identifies priority areas for action when considering the prevalence of poverty and chronic undernutrition at the upazilla level.Publication Financing On-Site Sanitation for the Poor : A Six-Country Comparative Review and Analysis(World Bank, Washington, DC, 2010-01)The present study offers evidence on alternative financing approaches for on-site household sanitation from case studies in six countries: Bangladesh, Ecuador, India, Mozambique, Senegal, and Vietnam. This evidence can help identify the best-performing approaches and the relevant factors and issues to consider in designing a sanitation financing strategy. The study systematically compares alternative financing approaches based on a set of common indicators, including in terms of the effectiveness in the use of public funds and targeting. The team chose to focus on those projects recognized as successes to obtain a reasonable representation of the better practices in sanitation programs. The study identified a number of useful examples and tentative lessons about finance which should help to advance the design of sanitation finance at the outset of a project. Replicating such experiences will require a better understanding of what drives household investment and what the key constraints limiting such investment are, in both financial and non-financial terms. The sanitation challenge continues to grow with population, as does the cost of failing to meet it. This study is a worthwhile contribution to addressing the challenge of how to pay for sanitation.
Users also downloaded
Showing related downloaded files
Publication Economic Recovery(World Bank, Washington, DC, 2021-04-06)World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.Publication Remarks at the United Nations Biodiversity Conference(World Bank, Washington, DC, 2021-10-12)World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication South Asia Development Update, April 2024: Jobs for Resilience(Washington, DC: World Bank, 2024-04-02)South Asia is expected to continue to be the fastest-growing emerging market and developing economy (EMDE) region over the next two years. This is largely thanks to robust growth in India, but growth is also expected to pick up in most other South Asian economies. However, growth in the near-term is more reliant on the public sector than elsewhere, whereas private investment, in particular, continues to be weak. Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit governments' ability to respond to increasingly frequent climate shocks. Yet, the provision of public goods is among the most effective strategies for climate adaptation. This is especially the case for households and farms, which tend to rely on shifting their efforts to non-agricultural jobs. These strategies are less effective forms of climate adaptation, in part because opportunities to move out of agriculture are limited by the region’s below-average employment ratios in the non-agricultural sector and for women. Because employment growth is falling short of working-age population growth, the region fails to fully capitalize on its demographic dividend. Vibrant, competitive firms are key to unlocking the demographic dividend, robust private investment, and workers’ ability to move out of agriculture. A range of policies could spur firm growth, including improved business climates and institutions, the removal of financial sector restrictions, and greater openness to trade and capital flows.Publication Media and Messages for Nutrition and Health(World Bank, Washington, DC, 2020-06)The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.