Making Blended Finance Work for Water and Sanitation
Unlocking Commercial Finance for SDG 6
Investments in water and sanitation are a prerequisite to deliver on the Sustainable Development Goals (SDGs), in particular on SDG 6 ensuring availability and sustainable management of water and sanitation for all. Blended finance can play an important role in strategically investing development finance to mobilise additional commercial finance needed to fill the current investment gaps. Thus far, however, blended finance has not reached scale in the water and sanitation sector. A greater evidence base is needed to better understand the current applications as well as the potential of blended models in the water and sanitation sector. This publication takes a commercial investment perspective and provides insights into three subsectors: (1) water and sanitation utilities, (2) small-scale off-grid sanitation and (3) multi-purpose water infrastructure and landscape-based approaches. The publication draws out recommendations for policy makers and practitioners to apply and scale innovative blended finance approaches where most appropriate.
Case Studies: Off-grid sanitation Water and Sanitation
The Bill & Melinda Gates Foundation (BMGF) provides grant funding to the Centre for Environmental Planning and Technology (CEPT) University to develop research on the benefits and sustainable delivery modalities of integrated faecal sludge management and wastewater treatment. As a part of this, technical assistance provided by CEPT enabled municipal governments in Wai and Sinnar in the India State of Maharashtra to establish a sanitation tax as part of existing property taxes and introduce city-wide faecal sludge and septage management services. The approach uses a public-private partnership (PPP) to deliver scheduled emptying and establish faecal sludge treatment plants (FSTPs). The team is working with the State Government of Maharashtra to replicate and strengthen this model for application in cities state wide.