World Bank2012-03-192012-03-192010-06-01https://hdl.handle.net/10986/2899This report identifies opportunities and challenges for local financing of water utilities in Peru and suggests recommendations for removing barriers and creating incentives for scaling-up local financing to local water utilities. It was developed with an understanding that meeting the Millennium Development Goals (MDGs) in water and sanitation in Peru will require scaling up local financing for the sector and that efficiency and effectiveness can be enhanced by greater involvement of local institutional investors and other parties. This joint study exposes many of the barriers to local private financing facing the urban water supply and sewerage (WS&S) sector in Peru. In short, the majority of local water utilities cannot meet credit rating and governance standards required to access private financing. Consequently, loans from financial markets are rare. These findings are probably not specific to Peru. Accordingly, there is great value for central governments to undertake similarly detailed studies to identify the obstacles preventing access to local financing unique to their country's WS&S sector.Este informe identifica oportunidades y retos para el financiamiento local de las Empresas de Agua (EPS) en Perú y sugiere recomendaciones para eliminar las barreras y crear los incentivos que permitan expandir el financiamiento local a las EPS. Fue desarrollado partiendo de la premisa de que el logro de los Objetivos de Desarrollo del Milenio en Perú, en materia de agua y saneamiento, requerirá la expansión del financiamiento privado al sector; asimismo, que es posible incrementar la eficacia y la eficiencia de las EPS por medio de una mayor participación de inversores institucionales locales y otros actores.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO SAFE WATERAFFORDABLE INTEREST RATESARREARSBALANCE SHEETBANK DEPOSITSBANKING SECTORBIDBONDBOND INVESTMENTSBONDSBORROWINGCAPITAL MARKETSCASH-FLOWSCENTRAL GOVERNMENTCHAMBER OF COMMERCECOMMERCIAL BANKINGCOMMERCIAL BANKSCONCESSION CONTRACTCONCESSION CONTRACTSCONFIDENCE OF LENDERSCONNECTIONCOST OF WATERCREDIT RATINGSCREDITORSCURRENCYCURRENCY RISKSDEBT DEFAULTDEBT INSTRUMENTSDEBT INVESTMENTDEBTSDEFAULT RISKDEVELOPING COUNTRIESDEVELOPMENT ASSISTANCEDRINKING WATERECONOMIC REGULATOREXPANSIONEXPLOITATIONEXTERNAL FUNDINGFINANCIAL MARKETFINANCIAL PERFORMANCEFINANCIAL RESOURCESFINANCING OF INFRASTRUCTURE PROJECTSFOREIGN DEBTFUNDING SOURCESGOVERNMENT BUDGETHOUSEHOLD CONNECTIONSINFRASTRUCTURE PROJECTINSTITUTIONAL INVESTORSINTEREST RATESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL MARKETINVESTMENT ACTIVITIESINVESTMENT ACTIVITYINVESTMENT DECISIONINVESTMENT PLANNINGINVESTMENT PORTFOLIOIPOLEGAL ENVIRONMENTLENDERSLIQUIDATIONLOANLOCAL COMMUNITIESLOCAL DEBTLOCAL FINANCIAL MARKETSLOCAL GOVERNMENTLOCAL GOVERNMENTSLOCAL INVESTORSLOCAL SUPPLYLOCAL WATERLOCAL WATER UTILITIESLOCAL WATER UTILITYMAIN URBAN AREASMARKET LIQUIDITYMARKET STRUCTUREMATURITIESMATURITYMUNICIPAL GOVERNMENTSMUNICIPALITIESNUMBER OF CONNECTIONSOPERATIONAL PERFORMANCEPENSIONPENSION FUNDSPENSIONSPRIVATE FINANCINGPRIVATE OPERATORSPRIVATE PARTNERSHIPSPROVISION OF WATERPROVISION OF WATER SUPPLYPUBLIC SERVICESQUALITY OF SERVICERISK MITIGATIONROADSSANITATIONSANITATION SECTORSAVINGSSEWERAGETARIFF LEVELSTARIFF SETTINGTECHNICAL ASSISTANCETRANSPARENCYURBAN AREASURBAN WATERURBAN WATER SECTORURBAN WATER UTILITIESUSERSWASTE WATERWASTE WATER TREATMENTWATER OPERATORSWATER SECTORWATER TREATMENT PLANTSWATER UTILITIESWorld Bank10.1596/2899