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 vs ECONOMIC

Finance for the water sector

The range of financial instruments

Charges for use Internal Grant (Nation or Gov) External Grants (ODA) Loans and equity Donation

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

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

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

Building a financing strategy for IWRM

WATER VALUE

O & M

ENVIRONMENTAL COST

Case: Financing in France

Paymentby users

subsidyBasin agency

Polluter’s tax

Local authority(municipality or syndicate)

Costrefund

Atthe country level water pays for water only,

Water users