Intergovernmental Transfers for Environmental Infrastructure

Lessons from Armenia, the Russian Federation and Ukraine

image of Intergovernmental Transfers for Environmental Infrastructure

This report draws on three detailed case studies from Armenia, the Russian Federation and Turkey and on the experience of OECD countries to provide guidance on how transfers from central budgets to local authorities could be designed to finance environmental infrastructures in transition economies. The report also investigates mechanisms for transferring financial resources for water services from higher to lower levels of government.



Executive Summary

Most countries in Eastern Europe, Caucasus an Central Asia (EECCA) have engaged in a systematic devolution of responsibilities for the construction and maintenance of urban environmental infrastructure to subnational levels of government. As owners of the communal service infrastructure, municipalities are responsible for its rehabilitation, modernisation, and development. Now, devolution of responsibilities needs to be matched by ensuring access to the financial resources needed to implement the new mandates assigned to local and regional jurisdictions...


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