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Sustainable Pro-poor Financing Modalities for WASH Innovative Water Financing Workshop

Sustainable Pro-poor Financing Modalities for WASH Innovative Water Financing Workshop Mombasa, 9 th November 2011. WSUP Members. Urban poor to low income consumer. Public Private Vendor/NGO Provision. Filling The Void Through Empowering NGOs?.

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Sustainable Pro-poor Financing Modalities for WASH Innovative Water Financing Workshop

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  1. Sustainable Pro-poor Financing Modalities for WASH Innovative Water Financing Workshop Mombasa, 9th November 2011 www.wsup.com

  2. WSUP Members www.wsup.com

  3. Urban poor to low income consumer www.wsup.com

  4. Public Private Vendor/NGO Provision Filling The Void Through Empowering NGOs?

  5. Public PrivateCommunity Partnership Provision Reformed Public Private Sector With Pro-poor Mandate, Using NGOs ?

  6. Why Invest in LICs? • Perception that supplying water to the urban poor is not financially sustainable • Convince utilities of their obligation to serve the urban poor • Convince water utilities that serving the urban poor makes business sense • NRW Reduction • Expanded customer base • Tap into existing private assets • Multiplier effect through DMMS www.wsup.com

  7. Low income consumers Urban poor Urban poor to low income consumer www.wsup.com

  8. Feasibility study WSUP Project Cycle Scale-Up Project Cycle Full Implementation Piloting Scoping study Project Identification

  9. WSUP Project Cycle Project Cycle

  10. PLF – rewarding success • IFIs enter into pre-agreements with LSPs to provide loan finance to scale up financially sustainable pro-poor models • Innovative Water Finance goes hand in hand with innovative Water Management Options/Partnerships • WSUP - accessing technical expertise from private and NGO sectors, specifically focused on assisting LSPs to reach LIC on a financially viable basis. www.wsup.com

  11. PLF – rewarding success Service provider scales up pro-poor services city wide; loan finance repaid over time by service provider with expanded customer base and improved financial status Service Provider Designs financially viable service improvements at representative scale Implements financially viable representative scale project Further enhance capacity to expand pro-poor services city wide www.wsup.com

  12. Management tools Management Contracts Concession Contracts Affermage Privatisation Municipal Funding • Recognise poor as market segment • Tenders include professional partners for LIC • Budgets & finance mechanisms for LIC • Delegated management models INCLUSIVITY www.wsup.com

  13. PLF characteristics vs other financing modalities www.wsup.com

  14. Unique advantages of PLF • Increasing access and quality of service to low-income urban settlements in a financially sustainable manner • Linking finance to demonstrated results and capacity improvements to incentivise reform • Directly engaging with and supporting the entities mandated to provide services in urban areas, i.e. utilities and municipalities (and, through them, smaller-scale or informal service providers) • Providing an accessible finance option for such service providers regardless of their initial capacity and financial sustainability www.wsup.com

  15. Low income consumers Urban poor MDGs need management plus finance Pro-poor finance mechanisms www.wsup.com

  16. Advising on Pro-poor Financing Modalities for WASH www.wsup.com

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