International UN-Water Conference. Water in the Green Economy in Practice: Towards Rio+20. 3-5 October 2011

session 3: Sustainable financing

Julia Bucknall"For me, the green economy means thinking hard about making sure that the actions of today will not lock us into problems tomorrow. Also, it means thinking hard about ways in which we can meet the needs of the poor and the needs of poor countries."
Julia Bucknall
>> Full interview

Convener: World Bank
Date: 3 October 2011
Time: 16:00 – 17:30
Place: Plenary Room

Speakers and panelists

  • Overview of the session: Maria Angelica Sotomayor, Senior Economist, Urban, Water Supply and Sanitation Unit, Eastern Europe and Central Asia Region, World Bank
  • Discussion with panelists:
    Case 1. India: Ms. Gayitri Handanahal Venugopal, Business Development Manager, Naandi Community Water Services.
    Case 2. Morocco: Mr. Said Chadli, Director of Programme INDH-INMAE and Mr. Thomas Hascoet, Former Director of INDH Project.

Overview of the tool

This overview paper PDF document introduces financing and cost recovery for water. It explains how financing approaches can act as a tool for change in supporting the transition to a green economy. It reflects on challenges faced, how the tool helps overcome the challenges, and lessons learnt from implementation.

Cases in the Plenary

  • Case 1: Social contract formulas in rural areas: the India Naandi Foundation water treatment plants PDF document
    This case describes the practice that Naandi Foundation in partnership with private firms combines cost-effective water purification technology with a community-driven and performance-based approach for drinking wwater treatment and provision. The output-based approach requires that tariffs paid by users for consumption cover the costs of operation and maintenance, user-fee collection, and education and communication activities with key stakeholders and vulnerable groups. As of 2010, Naandi had 300 plants serving safe drinking water to 393,000 households.

Interviewing Diego Fernandez, Economist, University of El Valle, Colombia
>> Full interview (in Spanish) Disponible en español

  • Case 2: Output-based aid: extending water and sanitation services to the poor in peri-urban Morocco PDF document
    This case highlights the output-based aid subsidy approach to improve the water and sanitation services to the poor peri-urban communities in Morocco. Operators pre-financed expansion of services and a pre-agreed output-based Aid subsidy was disbursed once outputs were achieved – 60% upon a functioning household connection and 40% upon 6 months of service, independently verified. The subsidy allowed for reduced connection fees, bridging the gap between capacity to pay and actual cost of connection. The pilot provided subsidized access to water supply to a total of 10,484 households and sanitation services to a total of 9,016 households, benefitting more than 52,000 people.

Case studies table

This table PDF document includes cases presented during the conference as well as additional cases which illustrate successful implementation of the tool. These will contribute to the preparation of input for the Rio+20 conference.