Meeting the Sustainable Development Goal for universal and equitable access to safe and affordable drinking water by 2030 requires utilities serving the poorest households to play critical roles. Yet these utilities are frequently unable to cover their current operational costs, much less expand access, through existing tariffs and transfers. New models and approaches are needed to identify new sources of sustainable subsidies for these utilities. Drawing on lessons from other sectors, this study explores three potential models in particular – global funds, solidarity levies, and land value capture – for raising additional resources and considers ways that funding could be pooled and delivered to incentivize improved outcomes.
This report was funded by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). We are grateful to them and to all our funders, who make it possible for Urban to advance its mission.