Sustainable Pro-poor Financing Modalities for WASH
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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

Mombasa, 9th November 2011

www.wsup.com


WSUP Members

www.wsup.com



Public Private Vendor/NGO Provision

Filling

The

Void

Through

Empowering

NGOs?


Public PrivateCommunity Partnership Provision

Reformed Public Private Sector

With Pro-poor Mandate,

Using NGOs ?


Why invest in lics
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


Urban poor to low income consumer1

Low income consumers

Urban poor

Urban poor to low income consumer

www.wsup.com


Feasibility study
Feasibility study

WSUP Project Cycle

Scale-Up

Project Cycle

Full Implementation

Piloting

Scoping study

Project Identification


WSUP Project Cycle

Project Cycle


Plf rewarding success
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


Plf rewarding success1
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


Management tools
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



Unique advantages of plf
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


Low income consumers

Urban poor

MDGs need management plus finance

Pro-poor finance mechanisms

www.wsup.com


Advising on

Pro-poor Financing Modalities for WASH

www.wsup.com


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