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Explore financial instruments and strategies for funding IWRM projects. Learn about grants, loans, donations, taxes, subsidies, and more to finance water sector initiatives effectively. Dive into case studies like Financing in France for real-world insights.
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Grants, internal sources, donors and NGO sources Economic and Financial Instruments for IWRM
Outline presentation • Finance for the water sector • The range of financial instruments • Building a financing strategy for IWRM • Case study: • Financing in France
Finance for the water sector • FINANCE vs ECONOMIC
The range of financial instruments • Charges for use • Internal Grant (Nation or Gov) • External Grants (ODA) • Loans and equity • Donation
Building a financing strategy for IWRM • Grant from International aid agency: Technical assistance, capacity building, regulatory system • Grant from local and international NGOs • Grant from the proceeds of pollution and environment taxes: water conservation, pre-treatment
Building a financing strategy for IWRM • Encourage water users to take on cost of local schemes • Get the commercial enterprise to invest in water conservatio and pre-treatment by mixture of tariff and incentives
Building a financing strategy for IWRM • Use revenue to cover O&M cost and the investement cost • Subsides from cental and local Gov for investment WATER VALUE O & M ENVIRONMENTAL COST
Payment by users Local authority Basin agency subsidy (municipality or syndicate) Cost Polluter’s refund tax Water users At the country level water pays for water only , Case: Financing in France