Closing financing gaps to achieve universal access to water and sanitation services through sustainable and creditworthy business models, increased public funding and expanded market finance for infrastructure investment.
Globally, 663 million people do not have access to safe drinking water and 2.4 billion people lack access to improved sanitation. Governments have set ambitious targets for universal access to water and sanitation by the year 2030, but an unprecedented mobilization of funding will be required to meet this goal. A 2016 analysis by the World Bank estimates that $114 billion per year of capital investments will be required to meet universal access to safely managed water and sanitation services by 2030, or about three times the current investment levels. USAID’s WASH-FIN project works in collaboration with national governments, development partners, private capital market institutions, service providers, and local government, sector, and community stakeholders in at least eight countries to close financing gaps and improve governance structures that enable targeted countries to become self-reliant by accessing reliable sources of capital for sustainable, climate resilient water and sanitation infrastructure.
WASH-FIN APPROACH TO CLOSING FINANCING GAPS
WASH-FIN’s approach to closing financing gaps is based on the premise that all citizens should be treated as valued customers and adequately served by water, sanitation and hygiene (WASH) service providers. To do this, WASH-FIN advocates for commercially viable business models that strengthen creditworthiness, within clear regulatory and governance structures. Building on that, WASH-FIN aims to increase and leverage public investment with repayable, market, and other sources of finance to expand or improve service delivery. Finally, WASH-FIN disseminates these efforts to demonstrate what is possible and provide models to further build on and replicate. The following strategic lines of action encompass this approach to move the sector toward the goal of closing the financing gaps to reach universal access: