Only 12% of total aid to the water sector in 2000-2001 went to countries where less than 60% of the population had access to safe water. This is one of the findings from an OECD analysis of bilateral and multilateral aid to the water sector. The water supply and sanitation sector receives about 6% of bilateral aid, and some 4-5% of multilateral aid. Annual average aid allocations to the total water sector are US$ 3 billion (EUR 2.8 billion), with an additional US$ 1-1.5 billion (EUR 0.9 - 1.4 billion) in loans. While water and sanitation projects account for over 75% of the contributions to the water sector during the last five years, most aid goes to a handful of large urban projects and nearly half goes to just ten countries. Nevertheless, the number of projects using low-cost technologies seems to be increasing. About 10% of water sector funding goes to water sector reform, institutional support and capacity building, while only a tiny fraction is reserved for education and training. The largest donor is Japan (33%). Together, the World Bank, Germany, USA, France, UK and the European Community (EC) contribute 45%.

OECD (2003). Aid activities in the water sector 1997/2002. (Creditor reporting system on aid activities ; vol. 2003-1. http://oecdpublications.gfi-nb.com/cgi-bin/OECDB...

Contact: Julia Benn, OECD Development Co-operation Directorate, julia.benn@oecd.org

Source: OECD Observer, 19 Mar 2003