Financing
Towards a sustainable financial model for water and sanitation management: Implementing the right to access water and sanitation and integrated water resource management requires appropriate financing. The financing needs of water and sanitation services are considerable.
Objectives
The members of the French Water Partnership are advocating for a sustainable financial model:
- for water and sanitation services:
Water and sanitation services are funded from three sources: tariffs, taxes and transfers, known as the “3 Ts”:
- Tariffs include all contributions directly paid or invested by users of water, sanitation and hygiene services;
- Taxes are funds raised from domestic taxation and channeled to the sector via transfers from all levels (national, regional and local): investment or operating subsidies, tax breaks, etc.;
- Transfers correspond to contributions from the international community (donations or loan components), such as funds from international donors or NGO projects.
Action must be taken in order to :
- Reduce service costs by improving management (leakage reduction, development of technologies adapted to needs, in situ sanitation solutions, etc.);
Optimize resource allocation by concentrating subsidies on financing access to services for the poorest and most vulnerable populations;
Develop territorial equity systems on a local and international scale (French Oudin-Santini Act: 1% of water bills dedicated to developing access to water in the Global South).
- for Integrated Water Resource Management (IWRM):
It is important to mobilize sustainable funding so that basin organizations can ensure effective monitoring of the resource and regular consultation between users.