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Finance strategies for environmental infrastructure

This presentation outlines the process and objectives of finance strategies for environmental infrastructure development, emphasizing the need for realism, affordability, and clear financial options. It discusses the experience gained in water, sanitation, and waste sectors in the EECCA region, and proposes ways forward to enhance the relevance and implementation of finance strategies.

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Finance strategies for environmental infrastructure

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  1. EAP Task Force Finance strategies forenvironmental infrastructure Xavier Leflaive Paris, 23 February, 2007

  2. Outline of the presentation • Objective of the presentation • Context • Experience gained • Ways forward

  3. Objective of the presentation • Share information on the latest developments of the methodology • Discuss ways forward • Identify priority areas of work, possibly for after Belgrade

  4. ContextWhat is a finance strategy • A process • Objectives • To support the design of a national/regional strategy on environmental infrastructure (water, sanitation, waste) • To check the feasiblity of this strategy • To substantiate dialogue on targets regarding the level/quality of service (e.g. coverage, standard, technology) • To assess the financial options to finance these targets

  5. ContextWhy Finance Strategies? • Because of • Lack of realism • Need to take account of affordability • For households • For public budgets • Additional reasons • To provide a missing link between sector policies and programs and feasibility studies • To pave the way for external financing by providing clear and transparent data on financing requirements

  6. Experience gained in EECCA

  7. Experience gainedSelected outcomes from FS • Water • Substantiates a policy dialogue on the level of sevice for urban water supply • Contributes to the awareness that sanitation should be a priority issue and is affordable • Provides an estimate for the costs of achieving the MDGs • Rationale for a revision of tariff policy • Waste • Provides substantial input to a national/regional Master plan • Analyse capacity of the sector to attract private operators • Raises the issue of intermunicipal cooperation

  8. Ways forwardEnhancing the relevance of FS • Reliability of data • Data collection • The case of rural areas • Relevance of alternative scenarios • Identify the appropriate policy options (level of service, geographical aggregation, etc.) • A focus on implementation • Plugging the finance strategies into • The revision of PRSP • Budgetary decision making (MTEF) • Tariff setting procedures • Monitoring the implementation (performance indicators) • Revising finance strategies, to account for • New demand forecasts • Updated costs • Revised potential revenues

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