McPhail, AlexanderLocussol, Alain R.Perry, Chris2014-03-072014-03-072012-06https://hdl.handle.net/10986/17226This note is a partial response to the above mentioned 2010 Independent Evaluation Group (IEG) evaluation. It covers the specific issues to be addressed in the Water supply and Sanitation (WSS) sector and in the irrigation sector in two distinct parts, because if WSS and irrigation have some common features, there are many distinctions to be made. Among the various water-using sectors, that include navigation, fisheries, hydropower, rain fed agriculture, irrigated agriculture, WSS, and more generally 'the environment', cost recovery issues are of primary concern, and are the focus for this note, in the WSS and irrigation sectors. This preliminary background Note is divided in four parts: a 'history' of the call for financial sustainability and cost recovery and the parallel documenting of the lack of progress. This section ends with what this Note hopes to achieve in the face of what is clearly a deeply rooted problem; an outline of options to be considered for achieving financial sustainability of WSS service providers and recovering the costs of the WSS service through tariffs, i.e., from users and through subsidies; a discussion on what makes financial sustainability of irrigation projects different from WSS projects; and a summary of recommendations to teams involved in the identification, preparation, appraisal and supervision of water projects and of practical measures and actions that both the water sector board and the water anchor could take to help improve the Bank's track record in achieving and financial sustainability of the water projects it finances.en-USCC BY 3.0 IGOACCEPTABLE QUALITYACCESS TO FINANCINGACCOUNTABILITYACCOUNTING PROCEDURESACCRUAL ACCOUNTINGAFFORDABLE WATERAGRICULTURAL WATER USEAGRICULTURE ORGANIZATIONAICAQUIFERSASSET HOLDING COMPANYAUTONOMYBAD DEBTBAD DEBTSBALANCE SHEETSBASIC SANITATIONBILL COLLECTIONBOREHOLESBORROWERBORROWINGBUSINESS ACTIVITYCAPITAL COSTSCAPITAL MARKETSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITAL STRUCTURECASH ACCOUNTINGCASH FLOWCASH FLOW ANALYSISCASH FLOW STATEMENTSCASH FLOWSCASH RESERVESCENTRAL GOVERNMENTCOLLECTION OF WATERCONTRACTUAL OBLIGATIONSCONTRIBUTION TO COSTCOST OF WATERCOST RECOVERYCOST RECOVERY POLICIESCOVERINGCREDITSCREDITWORTHINESSCUBIC METERCUBIC METER OF WATERCUSTOMER BASEDAMSDEBTDEBT FINANCINGDEBT SERVICEDEMAND FOR WATERDEMAND MANAGEMENTDEMAND MANAGEMENT POLICIESDEMOCRATIC PROCESSDEVELOPMENT BANKDISCRIMINATIONDISPOSAL OF WASTEWATERDRAINAGEDRAINAGE SYSTEMSDRINKING WATEREFFICIENT WATER USEEMPLOYERSENVIRONMENTAL IMPACTSEQUITY CAPITALEVAPORATIONEXCHANGE RATEEXCLUSIONEXPENDITUREEXPENDITURESEXTERNAL SHOCKSEXTERNALITIESFARMERSFINANCESFINANCIAL ANALYSESFINANCIAL ANALYSISFINANCIAL COSTFINANCIAL COSTSFINANCIAL COVENANTSFINANCIAL PERFORMANCEFINANCIAL RESOURCESFINANCIAL SUSTAINABILITYFINANCIAL VIABILITYFINANCING COSTSFIXED ASSETSFLOOD CONTROLFOREIGN EXCHANGEFULL COST PRICINGFUNDING SOURCESGENDERGROUNDWATERHANDPUMPSHOURS OF SERVICEHOUSEHOLDSHYDROLOGIC CYCLEIMPLICIT TAXINADEQUATE FUNDSINCOME DISTRIBUTIONINCOME STATEMENTSINDUSTRIAL USEINFLATIONINTERNATIONAL BANKINTERNATIONAL WATERINVENTORYINVESTMENT COSTSIRRIGATIONIRRIGATION SYSTEMSIRRIGATORSLARGE DAMSLEAST COSTLOANLOCAL GOVERNMENTLOW-INCOME HOUSEHOLDSLRMCMAINTENANCE COSTSMARGINAL COSTMETERINGNATURAL RESOURCESNUMBER OF BENEFICIARIESOPERATING COSTSOPERATING EXPENSESOPERATING INCOMEOPERATING RATIOOPERATIONAL EFFICIENCYOPERATIONAL RISKOPERATIONAL RISKSOPERATOR TARIFFPENALTIESPERFORMANCE INDICATORSPIPED WATERPRESENT VALUEPRESSUREPRIVATE OPERATORPRIVATE OPERATORSPRIVATE PARTICIPATIONPRIVATE PARTICIPATION IN WATERPRIVATIZATIONPRODUCTIVITYPROFITABILITYPUBLIC COMPANYPUBLIC SAVINGSPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSQUALITY OF SERVICERAINREPAYMENTRESOURCE ALLOCATIONRETURN ON ASSETSRETURN ON EQUITYREVENUE SOURCESRIVERSRUNOFFRURAL COMMUNITIESRURAL SETTLEMENTSSANITATION FACILITIESSANITATION OPERATIONSSANITATION SERVICESANITATION SERVICE PROVIDERSSEPTIC TANKSSERVICE DELIVERYSERVICE FEESERVICE IMPROVEMENTSSERVICE PROVIDERSERVICE PROVIDERSSERVICE PROVISIONSERVICE QUALITYSEWERAGE NETWORKSEWERAGE SERVICESSTORM WATERSUBSIDIARYSURFACE WATERTARIFF ADJUSTMENTSTARIFF POLICIESTARIFF SETTINGTARIFF STRUCTURETECHNICAL ASSISTANCEURBAN AREASURBAN CENTERSURBAN WATERURBAN WATER SUPPLYURBAN WATER UTILITIESUSE OF WATERUSER FEESUTILITIESWASTE WATERWASTE WATER TREATMENTWASTEWATER COLLECTIONWATER ASSOCIATIONWATER BODIESWATER COVERAGEWATER DISTRIBUTIONWATER FEESWATER MANAGEMENTWATER POINTSWATER PRICINGWATER PRODUCTIONWATER PROJECTSWATER RATESWATER REQUIREMENTSWATER RESOURCEWATER RESOURCE MANAGEMENTWATER RESOURCESWATER RESOURCES MANAGEMENTWATER RIGHTSWATER SCARCITYWATER SECTORWATER SERVICEWATER SERVICE DELIVERYWATER SERVICE PROVIDERSWATER SERVICE PROVISIONWATER SERVICESWATER SOURCEWATER SUPPLIESWATER SUPPLYWATER SUPPLY COMPANYWATER SUPPLY SERVICEWATER SUPPLY SYSTEMSWATER SYSTEMSWATER TARIFFWATER TARIFFSWATER USEWATER USERWATER USER ASSOCIATIONWATER VENDORSWELLSWORKING CAPITAL10.1596/17226