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Mechanisms for Managing Public Environmental Expenditure in Selected OECD Countries

image of Mechanisms for Managing Public Environmental Expenditure in Selected OECD Countries

This report analyses selected public expenditure programmes supporting environmental investments in water supply and wastewater treatment infrastructure in four OECD countries: Austria, Belgium (the Region of Flanders), France and Germany. These programmes have been selected as they involve different approaches to managing public expenditure for water investments. The study focuses on mechanisms for managing government assistance at both national (Austria) and sub-national (Belgium, France, Germany) levels. In selecting the case studies, special attention has been given to the relevance of the expenditure programmes in their national environment and economic policy regimes as well as the potential for replication of good practices in transition economies.

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Germany (New Länder)

The German Unification of 1990 revealed the inadequate water supply and wastewater treatment infrastructure that existed in the new Länder. In an attempt to improve water environmental quality and foster regional development, a variety of public expenditure schemes were established. One of these was the local authorities loans programme (Kommunalkreditprogramm) managed by the government-owned German Bank for Reconstruction (Kreditanstalt für Wiederaufbau – KfW). This programme ran from 1990 to 1993. The programme will be analysed in detail in the following sections.

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