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

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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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Presentation Transcript
slide1
Sustainable Pro-poor Financing Modalities for WASH

Innovative Water Financing Workshop

Mombasa, 9th November 2011

www.wsup.com

slide2
WSUP Members

www.wsup.com

slide4
Public Private Vendor/NGO Provision

Filling

The

Void

Through

Empowering

NGOs?

slide5
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

feasibility study
Feasibility study

WSUP Project Cycle

Scale-Up

Project Cycle

Full Implementation

Piloting

Scoping study

Project Identification

slide9
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

slide15
Low income consumers

Urban poor

MDGs need management plus finance

Pro-poor finance mechanisms

www.wsup.com

slide16
Advising on

Pro-poor Financing Modalities for WASH

www.wsup.com

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