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Economic and Financial Instruments for IWRM

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.

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Economic and Financial Instruments for IWRM

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  1. Grants, internal sources, donors and NGO sources Economic and Financial Instruments for IWRM

  2. Outline presentation • Finance for the water sector • The range of financial instruments • Building a financing strategy for IWRM • Case study: • Financing in France

  3. Finance for the water sector • FINANCE vs ECONOMIC

  4. The range of financial instruments • Charges for use • Internal Grant (Nation or Gov) • External Grants (ODA) • Loans and equity • Donation

  5. 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

  6. 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

  7. 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

  8. 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

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