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6th World Water Forum
Home Page  > + Forum Programme  > Sessions > Theme 5

Theme 5: Finance

5.1 Sustainable means of financing local water authorities and systems

5.1.1 Show Me the Money! Financial Sustainability: Importance, progress and emerging issues: Without financial sustainability, the water sector will not deliver on established targets nor contribute to economic growth. It is vital to develop a financial system that can and will invest in water. What recent progress was made after the Camdessus Report and the Gurria Task Force on financing of water services? What additional funds were leveraged due to the MDG agenda?
Contact: AquaFed

5.1.2 Get Real! A Strategic Approach for Financing Water and Sanitation Services: Financiers face a lack of effective demand for lending. For financial flows to improve, local authorities and service providers need to find ways to make their investments more appealing and secure for international financiers. In what ways can their borrowing capacity, creditworthiness and cash flow be built up in order to become more reliable financial partners?
Contact: OECD

5.1.3 Unlocking the demand for finance: how to enhance the "bankability" of the sector? The need for finance in the water sector is potentially limitless. However, absorption capacity and willingness of investors is certainly limited. Therefore, realistic goals must be set. Can integration and optimization of financial flows close the finance gap for water? What financial strategies can increase financial flows to the water sector?
Contact: European Investment Bank (EIB)

5.1.4 Pooling Resources to Close the Financing Gap: how can financing for the sector be optimised? Financial sustainability requires closing the financing gap by acting on the demand and supply sides of finance. How can the gap between lenders and local authorities/utilities needing toe borrow be bridged? What can the different actors do to increase the borrowing capacity of service providers?
Contact: European Investment Bank (EIB)

5.1.5 Wrap-up and Synthesis: Contact: Aquafed

5.2 Pricing Strategies as a tool for a Sustainable Water Sector

5.2.1 Pricing Water Services - Process matters: Overcoming conflicts, building a dialogue: Who should pay for water and sanitation services? And how much? The debate on these issues has become increasingly polarized. This is in part due to the coexistence of different views on key concepts, such as the benefits from water and sanitation services and their link with their tariffs, the different objectives pursued by policy-makers, the definitions "affordability" and "sustainable cost recovery", etc.  People understand that water services have a cost that should be covered. However, they disagree on which cost components should be covered through tariffs (how much to pay) and how these costs should be allocated across user groups and between users and other stakeholders, such as taxpayers (who should pay).
Contact: OECD, AfD, Water Dialogues

5.2.2 Affordable and sustainable water and sanitation services: The role of tariffs and other instruments: The session builds on the previous session 5.2.1 and brings the debate from general definitions and a discussion on dialogues and processes to the practical solutions that can be implemented to address different policy objectives (financial, social, economic, environmental).
In particular this session asks how we can practically measure affordability and how tariffs for water services -and particularly tariff structures- can be designed to provide a meaningful contribution to financial sustainability while ensuring access to affordable services for all, including the poor and vulnerable groups. Contact: OECD, Suez Environnement, International Water Association (IWA)

5.2.3 Pricing sanitation and wastewater management: The special challenges: This session explores the trade-offs between environmental, financial and social considerations when making choices about wastewater management solutions and the financing thereof. It identifies the special aspects of sanitation services that can impact the design and implementation of their tariffs. Contact: Programme Solidarité Eau (pS-Eau)

5.2.5 Joint venture between Topics 2.3 and 5.2: DROPS and CROPS: Water demand management in agriculture: The growth in world demand for food, fibre and energy from agriculture cannot be met without irrigation. But in many countries, subsidies may encourage famers to aggravate overuse and pollution of water. What can be done to reduce costs related to irrigation and agricultural pollution? How can costs be shared fairly between farmers and taxpayers? (To 2.3?) Contact: FAO, OECD, IWMI

5.3 Pro-poor Financing Policies and Strategies

5.3.1 Overcoming obstacles to serving the urban poor: Reduced quantity and quality of water resources affects the poor disproportionately, yet their voices are seldom heard. In addition to administrative and legal barriers, water vendors, crime and corruption also hinder better provision of services for the poor. How can these obstacles be identified and countered? Who out there is tackling these complex issues head on?
Contact: Water and Sanitation for the Urban Poor (WSUP), Water and Sanitation Programme (WSP)

5.3.2 Microfinance: Microfinance envisions a world in which the poor have permanent access to high-quality services. Formal banks traditionally have been unable to provide financial services to people with little or no income. Does the alternative of microfinance tools work in the water sector and if so, under which conditions?
Contact: IRC

5.3.3 Pro-Poor Regulation: While financing is essential, regulation has a key role to play to help the poor get access to water and sanitation.  In some cases, however, existing regulation may actually have the opposite effect. What are practical steps to translate the right to water into regulations that deliver results for the poor?
Contact: Water and Sanitation Programme (WSP), Agence Francaise de Developpement (AfD)

5.3.4 Consumer Voice: Recent surveys show that consumers’ preferences and willingness to pay for safe, reliable services are complex and often difficult to trace. Often consumer views are not adequately reflected in policies. How can consumers’ voices be more effectively captured and incorporated in pro-poor strategies? How can the poor organize themselves to make noise about water?
Contact: Water and Sanitation Programme (WSP)




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