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Private Sector Development

Korea: A model for development of the water and sanitation sector

Alexander Danilenko's picture
Cheonggyecheon Stream, Seoul, Korea 
Photo: Mark Pegrum

Can a sustainable water sector be developed simultaneously with a country’s growth? Can the water sector continue to expand and achieve comprehensive coverage and financial sustainability goals to become a recognized global model for water sector management and performance? Can a country without a single sewer line in 1958 have 90 percent of its wastewater treated by 2012?

The answer is yes! The example is Korea.

Delivering water and sanitation services in Niger: challenges and results

Taibou Adamou Maiga's picture

Niger is one of the world’s poorest countries (44.5% of poverty incidence in 2014). The country faces a number of challenges in meeting the national (PROSEHA, the National Program for sustainable development) and global targets to increase access to sanitation and potable water, particularly in rural areas where the access to water is 44.2% and 7% for sanitation (2015 Ministry of Water and Sanitation data).

Overcoming these challenges while satisfying increasing demands for better or expanded service, the government began investigating options that bring in the know-how of the private sector. This has led to a growing domestic private sector provision of services in Niger.

Achieving universal access to water and sanitation by 2030 – how can blended finance help?

Joel Kolker's picture
Today, 2.4 billion people still live without access to improved sanitation; about one billion people defecate in the open; and more than 640,000 people lack improved drinking water sources.
 
With the adoption of the Sustainable Development Goals on water and sanitation (SDG 6), countries of the world committed themselves to change this situation by achieving universal access to safe water and sanitation while addressing issues of water quality and scarcity to balance the needs of households, agriculture, industry, energy, and the environment over the next 15 years.
 
A substantial increase in sector financing will be necessary to achieve SDG 6. Recent estimates by the World Bank’s Water and Sanitation Program (WSP) indicate that the present value of the additional investment in the water and sanitation sector alone needed through 2030 will exceed US$1.7 trillion. Existing funding falls far short of this amount; countries may have to increase their water and sanitation investments by up to four times in order to meet the SDGs.
The World Bank at World Water Week 2016

At present, most water sector actors in developing countries rely on government lending and concessional financing from national, bilateral or multilateral development banks (MDBs) to mobilize financing for capital investment. These financial sources alone will not be sufficient to finance investments on the scale that is called for by the SDGs. It is therefore essential to mobilize up-front financing from commercial sources as well.

  National governments and donors must use their funds in a catalytic manner, as part of broader financing strategies that mobilize funding from sector efficiency gains, tariffs, domestic taxes, and transfers to crowd in domestic commercial finance. If they are able to do so, countries will be much more likely to access the resources they need to improve and expand the infrastructure needed to deliver and sustain universal coverage of water and sanitation services and achieve SDG 6.

3 ways countries can improve water supplies in small towns

Fadel Ndaw's picture

Also available in: Français

A public faucet that serves 1,000 families in
el Alto, Bolivia.
Photo credit: Stephan Bachenheimer / World Bank

Small towns* typically have not been well served by national or regional water utilities. Decentralization has become increasingly widely adopted, but even if local governments at the small town level have the power to operate a water utility, they often lack the capital and skills to do so. In response, some local governments and public institutions concentrate improvements on upgrading public utilities’ operations or strengthening community based management. In other cases, they choose to bring in the private sector knowledge of how to get clean water and sanitation services to more people more efficiently, affordably or sustainably. There is no one solution to addressing often very complex water and sanitation challenges.

There are many ways in which the public sector can leverage its own resources through partnering with the private sector. For the domestic private sector to fully realize its potential at scale in the small town sub-sector, we found they need capable and enabled public institutions to structure the market and regulate private operators.

Lessons learned from case study countries (Colombia, Bangladesh, Philippines, Uganda, Cambodia, Niger and Senegal) in a new global study published by the Water Global Practice’s Water and Sanitation Program suggest the following three key ways to support public institutions in order to build a conducive business climate for market players in small towns Water Supply and Sanitation (WSS) service delivery:

Microfinance for water and sanitation: How one small loan makes a huge difference

John Ikeda's picture
Photo Credit: Water.org via Flickr under Creative Commons
Attribution-NonCommercial-ShareAlike 2.0 Generic license

This blog originally appeared on the The Consultative Group to Assist the Poor (CGAP) Microfinance Blog. Housed at the World Bank, CGAP is a global partnership of 34 leading organizations that seek to advance financial inclusion. The blog highlights a recent study which concludes that water and sanitation microfinance can be good for Microfinance Institutions, good for the development community, and -most importantly- good for borrowers and their families.

Septage : Kerala’s Looming Sanitation Challenge

Suseel Samuel's picture

Kerala is a beautiful state in South India, home to about 34 million people, many of whom share my pride as a Keralite.  Of all the states in India, Kerala scores the highest on the  human development index, has one of the highest literacy rates in India (around 95%), a low Infant Mortality Rate,  gender ratio in favor of the female population, stunning landscapes (highlands, mid-lands, low-lands), and a booming tourism industry. It is God’s own country, as the promoters of tourism industry has named it.