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 Paymentbyusers subsidy Basin agency Polluter’s tax Local authority (municipality or syndicate) Cost refund Atthe countrylevel water pays for water only, Water users