Part of OECD Water Policy and Finance Set - Buy all four reports and save over 30% on buying separately! This report examines innovative mechanisms that can help attract new financial resources into water and sanitation services. In particular, it focuses on mobilising market-based repayable financing (such as loans, bonds and equity) as a way of bridging the financial gap to meet the water-related Millennium Development Goals and other crucial sector objectives. The Camdessus and Gurria reports, published seven and four years ago, respectively, formulated a number of recommendations in this area. This report examines the extent to which these recommendations have been implemented. It looks at the rapidly evolving global context and to the ongoing financial and economic crisis, and considers how innovation in financing for the water sector may need to adapt. Further reading: Managing Water for All (2009); Private Sector Participation in Water Infrastructure: OECD Checklist for Public Action (2009); Social Issues in the Provision and Pricing of Water Services (2003); The Price of Water: Trends in OECD Countries (1999); Visit http://www.iwawaterwiki.org/xwiki/bin/view/Articles/UsefulResourcesforDevelopingCountries_0 to access the OECD area on the IWA WaterWiki

This report examines innovative mechanisms that can help attract new financial resources into water and sanitation services. In particular, it focuses on mobilising market-based repayable financing.

Developing countries need additional, cross-border capital channeled into their private sectors to generate employment and growth, reduce poverty, and meet the other Millennium Development Goals. Innovative financing mechanisms are necessary to make this happen. 'Innovative Financing for Development' is the first book on this subject that uses a market-based approach. It compiles pioneering methods of raising development finance including securitization of future flow receivables, diaspora bonds, and GDP-indexed bonds. It also highlights the role of shadow sovereign ratings in facilitating access to international capital markets. It argues that poor countries, especially those in Sub-Saharan Africa, can potentially raise tens of billions of dollars annually through these instruments. The chapters in the book focus on the structures of the various innovative financing mechanisms, their track records and potential for tapping international capital markets, the constraints limiting their use, and policy measures that governments and international institutions can implement to alleviate these constraints.

Approximately 80 per cent of the population of Latin America is concentrated in urban centres. Pressure on water resources and water management in cities therefore provide major challenges. Despite the importance of the issues, there has been little systematic coverage of the topic in book form. This work fills a gap in the literature by providing both thematic overviews and case study chapters. It reviews key aspects of why water matters in cities and presents case studies on topics such as groundwater management, green growth and water services, inequalities in water supply, the financing of water services and flood management. Detailed examples are described from Argentina, Brazil, Colombia, Ecuador, Mexico and Peru, and there is also a chapter comparing lessons which might be learnt from US cities. Contributing authors are drawn from both within and outside the region, including from the Inter-American Development Bank, OECD and World Bank to set the issues in a global context.

Big data analytics is transforming the water sector at the national and international levels. Its potential impact on transboundary water resource governance is being assessed, in the context of selected basins in this book.

The investments needed to deliver sustainable water and sanitation services, including the funds that are needed to operate and maintain the infrastructure, expand their coverage and upgrade service delivery to meet current social and environmental expectations, are huge. Yet, most systems are underfunded with dire consequences for water and sanitation users, especially the poorest. Providing sustainable drinking water supply and sanitation services requires sound financial basis and strategic financial planning to ensure that existing and future financial resources are commensurate with investment needs as well as the costs of operating and maintaining services. Some of the key messages of this report are: WSS generate substantial benefits for the economy Investment needs to generate these benefits are large in both OECD and developing countries Tariffs are a preferred funding source, but public budgets and ODA will have a role to play, too Markets-based repayable finance is needed to cover high up-front capital investment costs Strategic financial planning and other OECD tools can help Governments move forward

The investments needed to deliver sustainable water and sanitation services are huge, yet most systems are underfunded. This book provides practical tools for investment and financial planning related to water.