Mobilising resources from domestic and regional banks and financial sector institutions can compliment or free scarce public resources that can then be focused on services to the poor. Access to such market resources can also be a powerful incentive for water utility reform and improved performance. These were some of the conclusions of a Practitioners’ Workshop on Mobilizing Resources from Domestic Financial Markets for Water Utilities in Africa that was held on 7-9 August 2006 in Pretoria, South Africa.

The workshop recommended some practical ways to increase domestic market-based finance into water services:

• water agencies should get their financial management basics right;
• at the national level, create conditions more conducive to market-based finance including more innovative uses of grant finance;
• use shadow credit rating and the involvement of credit-rating agencies to build confidence in water service institutions
• support transaction development to help commercial banks better understand the risks of the water sector.

The workshop was jointly convened by the Water and Sanitation Program-Africa (WSP-Africa); African Development Bank; DWAF, South Africa; the Public Private Infrastructure Advisory Services (PPIAF); the Water Utility Partnership (WUP); and the World Bank Institute (WBI).

Web site: Workshop presentations and reports

Contact: WSP-Africa, wspafrica@worldbank.org

Source: WSP, 22 Aug 2006

Tags: policies & legislation