The objective of this report is to identify ways in which governments and external support agencies (ESAs) can increase access to finance for small-scale water and sanitation (WATSAN) providers, by channelling public funding to support the market and leverage private sector financing. The ultimate objective in doing so is to increase access to services for poor households, who either invest in the services themselves or rely on small-scale providers. This report has been developed as part of a component of the work programme of the European Union Water Initiative – Finance Working Group (EUWI-FWG), which looks at enhancing the role of the private sector in WATSAN and how EU donors can provide strategic support. The report draws from examples from a diverse range of geographies, including urban, peri-urban and rural areas. Many examples are drawn from East Africa and India. This is where fieldwork was conducted as part of the project funded by the EUWI-FWG (Kenya) and as part of a parallel project funded by Department for International Development/UK (DFID) via the SHARE research project (Tanzania and India). The overall assessment is that even though some of the financial channels are not currently much in use in the WATSAN sector, their use could be expanded in the context of an expansion of the financial offerings to the sector. (Link)
Trémolet, S. 2012. Small-Scale Finance for Water and Sanitation. EU Water Initiative – Finance Working Group (EUWI-FWG), Sanitation and Hygiene Applied Research for Equity (SHARE) Consortium. 72 p.