Committed to water for the world Engagés pour l’eau du monde

Financing

The implementation of the right to access to water and sanitation and the integrated management of water resources require appropriate funding. Water and sanitation services have substantial funding needs. The investment requirements for achieving the Millennium Development Goals were estimated at 18 billion USD per year as well as 54 billion USD per year for the maintenance and renewal of existing infrastructure.

Objectives

 

The members of the French Water Partnership call for a sustainable financial model :

 

• Water and sanitation services : The funding of water and sanitation services is based on three sources : tariffs, taxes and transfers, known as the “3 Ts” :

 

• Tariffs : price paid or invested by the us er of water, hygiene and sanitation services ;

 

• Taxes : Funds coming from internal fiscality and directed towards the water sector via transfers on every level (national, regional and local) : investment or operating subsidies, tax relief, etc ;

 

• Transfers : Corresponds to contributions made by the international community (donations or elements including loans) such as funds allo cated by international backers or NG O projects ;

 

The following measures need to be implemented to improve the system :
• the reduction of service costs through improved management (reduction in leakage, development of appropriate technology for needs, on-site sanitation solutions etc.) ;

 

• the optimization of resource allocation with subsidies concentrated on the funding of access to services for the poorest, most vulnerable populations ;

 

• the development of regional equalization mechanisms at the local as well as international scales (Oudin Santini law : French local authorities can earmark up to 1% of their revenue from water and sanitation services for international solidarity initiatives within the same sector).

 

• Integrated management of water resources :
Mobilization of sustainable funding so that organizations in the basin can ensure the efficient monitoring of water resources and regular dialogue among users.