Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects

This note is a partial response to the above mentioned 2010 Independent Evaluation Group (IEG) evaluation. It covers the specific issues to be addressed in the Water supply and Sanitation (WSS) sector and in the irrigation sector in two distinct pa...

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Bibliographic Details
Main Authors: McPhail, Alexander, Locussol, Alain R., Perry, Chris
Format: Other Poverty Study
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AIC
Online Access:http://documents.worldbank.org/curated/en/2012/06/16588086/achieving-financial-sustainability-recovering-costs-bank-financed-water-supply-sanitation-irrigation-projects
http://hdl.handle.net/10986/17226
id okr-10986-17226
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCEPTABLE QUALITY
ACCESS TO FINANCING
ACCOUNTABILITY
ACCOUNTING PROCEDURES
ACCRUAL ACCOUNTING
AFFORDABLE WATER
AGRICULTURAL WATER USE
AGRICULTURE ORGANIZATION
AIC
AQUIFERS
ASSET HOLDING COMPANY
AUTONOMY
BAD DEBT
BAD DEBTS
BALANCE SHEETS
BASIC SANITATION
BILL COLLECTION
BOREHOLES
BORROWER
BORROWING
BUSINESS ACTIVITY
CAPITAL COSTS
CAPITAL MARKETS
CAPITAL REQUIREMENT
CAPITAL REQUIREMENTS
CAPITAL STRUCTURE
CASH ACCOUNTING
CASH FLOW
CASH FLOW ANALYSIS
CASH FLOW STATEMENTS
CASH FLOWS
CASH RESERVES
CENTRAL GOVERNMENT
COLLECTION OF WATER
CONTRACTUAL OBLIGATIONS
CONTRIBUTION TO COST
COST OF WATER
COST RECOVERY
COST RECOVERY POLICIES
COVERING
CREDITS
CREDITWORTHINESS
CUBIC METER
CUBIC METER OF WATER
CUSTOMER BASE
DAMS
DEBT
DEBT FINANCING
DEBT SERVICE
DEMAND FOR WATER
DEMAND MANAGEMENT
DEMAND MANAGEMENT POLICIES
DEMOCRATIC PROCESS
DEVELOPMENT BANK
DISCRIMINATION
DISPOSAL OF WASTEWATER
DRAINAGE
DRAINAGE SYSTEMS
DRINKING WATER
EFFICIENT WATER USE
EMPLOYERS
ENVIRONMENTAL IMPACTS
EQUITY CAPITAL
EVAPORATION
EXCHANGE RATE
EXCLUSION
EXPENDITURE
EXPENDITURES
EXTERNAL SHOCKS
EXTERNALITIES
FARMERS
FINANCES
FINANCIAL ANALYSES
FINANCIAL ANALYSIS
FINANCIAL COST
FINANCIAL COSTS
FINANCIAL COVENANTS
FINANCIAL PERFORMANCE
FINANCIAL RESOURCES
FINANCIAL SUSTAINABILITY
FINANCIAL VIABILITY
FINANCING COSTS
FIXED ASSETS
FLOOD CONTROL
FOREIGN EXCHANGE
FULL COST PRICING
FUNDING SOURCES
GENDER
GROUNDWATER
HANDPUMPS
HOURS OF SERVICE
HOUSEHOLDS
HYDROLOGIC CYCLE
IMPLICIT TAX
INADEQUATE FUNDS
INCOME DISTRIBUTION
INCOME STATEMENTS
INDUSTRIAL USE
INFLATION
INTERNATIONAL BANK
INTERNATIONAL WATER
INVENTORY
INVESTMENT COSTS
IRRIGATION
IRRIGATION SYSTEMS
IRRIGATORS
LARGE DAMS
LEAST COST
LOAN
LOCAL GOVERNMENT
LOW-INCOME HOUSEHOLDS
LRMC
MAINTENANCE COSTS
MARGINAL COST
METERING
NATURAL RESOURCES
NUMBER OF BENEFICIARIES
OPERATING COSTS
OPERATING EXPENSES
OPERATING INCOME
OPERATING RATIO
OPERATIONAL EFFICIENCY
OPERATIONAL RISK
OPERATIONAL RISKS
OPERATOR TARIFF
PENALTIES
PERFORMANCE INDICATORS
PIPED WATER
PRESENT VALUE
PRESSURE
PRIVATE OPERATOR
PRIVATE OPERATORS
PRIVATE PARTICIPATION
PRIVATE PARTICIPATION IN WATER
PRIVATIZATION
PRODUCTIVITY
PROFITABILITY
PUBLIC COMPANY
PUBLIC SAVINGS
PUBLIC-PRIVATE PARTNERSHIP
PUBLIC-PRIVATE PARTNERSHIPS
QUALITY OF SERVICE
RAIN
REPAYMENT
RESOURCE ALLOCATION
RETURN ON ASSETS
RETURN ON EQUITY
REVENUE SOURCES
RIVERS
RUNOFF
RURAL COMMUNITIES
RURAL SETTLEMENTS
SANITATION FACILITIES
SANITATION OPERATIONS
SANITATION SERVICE
SANITATION SERVICE PROVIDERS
SEPTIC TANKS
SERVICE DELIVERY
SERVICE FEE
SERVICE IMPROVEMENTS
SERVICE PROVIDER
SERVICE PROVIDERS
SERVICE PROVISION
SERVICE QUALITY
SEWERAGE NETWORK
SEWERAGE SERVICES
STORM WATER
SUBSIDIARY
SURFACE WATER
TARIFF ADJUSTMENTS
TARIFF POLICIES
TARIFF SETTING
TARIFF STRUCTURE
TECHNICAL ASSISTANCE
URBAN AREAS
URBAN CENTERS
URBAN WATER
URBAN WATER SUPPLY
URBAN WATER UTILITIES
USE OF WATER
USER FEES
UTILITIES
WASTE WATER
WASTE WATER TREATMENT
WASTEWATER COLLECTION
WATER ASSOCIATION
WATER BODIES
WATER COVERAGE
WATER DISTRIBUTION
WATER FEES
WATER MANAGEMENT
WATER POINTS
WATER PRICING
WATER PRODUCTION
WATER PROJECTS
WATER RATES
WATER REQUIREMENTS
WATER RESOURCE
WATER RESOURCE MANAGEMENT
WATER RESOURCES
WATER RESOURCES MANAGEMENT
WATER RIGHTS
WATER SCARCITY
WATER SECTOR
WATER SERVICE
WATER SERVICE DELIVERY
WATER SERVICE PROVIDERS
WATER SERVICE PROVISION
WATER SERVICES
WATER SOURCE
WATER SUPPLIES
WATER SUPPLY
WATER SUPPLY COMPANY
WATER SUPPLY SERVICE
WATER SUPPLY SYSTEMS
WATER SYSTEMS
WATER TARIFF
WATER TARIFFS
WATER USE
WATER USER
WATER USER ASSOCIATION
WATER VENDORS
WELLS
WORKING CAPITAL
spellingShingle ACCEPTABLE QUALITY
ACCESS TO FINANCING
ACCOUNTABILITY
ACCOUNTING PROCEDURES
ACCRUAL ACCOUNTING
AFFORDABLE WATER
AGRICULTURAL WATER USE
AGRICULTURE ORGANIZATION
AIC
AQUIFERS
ASSET HOLDING COMPANY
AUTONOMY
BAD DEBT
BAD DEBTS
BALANCE SHEETS
BASIC SANITATION
BILL COLLECTION
BOREHOLES
BORROWER
BORROWING
BUSINESS ACTIVITY
CAPITAL COSTS
CAPITAL MARKETS
CAPITAL REQUIREMENT
CAPITAL REQUIREMENTS
CAPITAL STRUCTURE
CASH ACCOUNTING
CASH FLOW
CASH FLOW ANALYSIS
CASH FLOW STATEMENTS
CASH FLOWS
CASH RESERVES
CENTRAL GOVERNMENT
COLLECTION OF WATER
CONTRACTUAL OBLIGATIONS
CONTRIBUTION TO COST
COST OF WATER
COST RECOVERY
COST RECOVERY POLICIES
COVERING
CREDITS
CREDITWORTHINESS
CUBIC METER
CUBIC METER OF WATER
CUSTOMER BASE
DAMS
DEBT
DEBT FINANCING
DEBT SERVICE
DEMAND FOR WATER
DEMAND MANAGEMENT
DEMAND MANAGEMENT POLICIES
DEMOCRATIC PROCESS
DEVELOPMENT BANK
DISCRIMINATION
DISPOSAL OF WASTEWATER
DRAINAGE
DRAINAGE SYSTEMS
DRINKING WATER
EFFICIENT WATER USE
EMPLOYERS
ENVIRONMENTAL IMPACTS
EQUITY CAPITAL
EVAPORATION
EXCHANGE RATE
EXCLUSION
EXPENDITURE
EXPENDITURES
EXTERNAL SHOCKS
EXTERNALITIES
FARMERS
FINANCES
FINANCIAL ANALYSES
FINANCIAL ANALYSIS
FINANCIAL COST
FINANCIAL COSTS
FINANCIAL COVENANTS
FINANCIAL PERFORMANCE
FINANCIAL RESOURCES
FINANCIAL SUSTAINABILITY
FINANCIAL VIABILITY
FINANCING COSTS
FIXED ASSETS
FLOOD CONTROL
FOREIGN EXCHANGE
FULL COST PRICING
FUNDING SOURCES
GENDER
GROUNDWATER
HANDPUMPS
HOURS OF SERVICE
HOUSEHOLDS
HYDROLOGIC CYCLE
IMPLICIT TAX
INADEQUATE FUNDS
INCOME DISTRIBUTION
INCOME STATEMENTS
INDUSTRIAL USE
INFLATION
INTERNATIONAL BANK
INTERNATIONAL WATER
INVENTORY
INVESTMENT COSTS
IRRIGATION
IRRIGATION SYSTEMS
IRRIGATORS
LARGE DAMS
LEAST COST
LOAN
LOCAL GOVERNMENT
LOW-INCOME HOUSEHOLDS
LRMC
MAINTENANCE COSTS
MARGINAL COST
METERING
NATURAL RESOURCES
NUMBER OF BENEFICIARIES
OPERATING COSTS
OPERATING EXPENSES
OPERATING INCOME
OPERATING RATIO
OPERATIONAL EFFICIENCY
OPERATIONAL RISK
OPERATIONAL RISKS
OPERATOR TARIFF
PENALTIES
PERFORMANCE INDICATORS
PIPED WATER
PRESENT VALUE
PRESSURE
PRIVATE OPERATOR
PRIVATE OPERATORS
PRIVATE PARTICIPATION
PRIVATE PARTICIPATION IN WATER
PRIVATIZATION
PRODUCTIVITY
PROFITABILITY
PUBLIC COMPANY
PUBLIC SAVINGS
PUBLIC-PRIVATE PARTNERSHIP
PUBLIC-PRIVATE PARTNERSHIPS
QUALITY OF SERVICE
RAIN
REPAYMENT
RESOURCE ALLOCATION
RETURN ON ASSETS
RETURN ON EQUITY
REVENUE SOURCES
RIVERS
RUNOFF
RURAL COMMUNITIES
RURAL SETTLEMENTS
SANITATION FACILITIES
SANITATION OPERATIONS
SANITATION SERVICE
SANITATION SERVICE PROVIDERS
SEPTIC TANKS
SERVICE DELIVERY
SERVICE FEE
SERVICE IMPROVEMENTS
SERVICE PROVIDER
SERVICE PROVIDERS
SERVICE PROVISION
SERVICE QUALITY
SEWERAGE NETWORK
SEWERAGE SERVICES
STORM WATER
SUBSIDIARY
SURFACE WATER
TARIFF ADJUSTMENTS
TARIFF POLICIES
TARIFF SETTING
TARIFF STRUCTURE
TECHNICAL ASSISTANCE
URBAN AREAS
URBAN CENTERS
URBAN WATER
URBAN WATER SUPPLY
URBAN WATER UTILITIES
USE OF WATER
USER FEES
UTILITIES
WASTE WATER
WASTE WATER TREATMENT
WASTEWATER COLLECTION
WATER ASSOCIATION
WATER BODIES
WATER COVERAGE
WATER DISTRIBUTION
WATER FEES
WATER MANAGEMENT
WATER POINTS
WATER PRICING
WATER PRODUCTION
WATER PROJECTS
WATER RATES
WATER REQUIREMENTS
WATER RESOURCE
WATER RESOURCE MANAGEMENT
WATER RESOURCES
WATER RESOURCES MANAGEMENT
WATER RIGHTS
WATER SCARCITY
WATER SECTOR
WATER SERVICE
WATER SERVICE DELIVERY
WATER SERVICE PROVIDERS
WATER SERVICE PROVISION
WATER SERVICES
WATER SOURCE
WATER SUPPLIES
WATER SUPPLY
WATER SUPPLY COMPANY
WATER SUPPLY SERVICE
WATER SUPPLY SYSTEMS
WATER SYSTEMS
WATER TARIFF
WATER TARIFFS
WATER USE
WATER USER
WATER USER ASSOCIATION
WATER VENDORS
WELLS
WORKING CAPITAL
McPhail, Alexander
Locussol, Alain R.
Perry, Chris
Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects
relation Water papers;
description This note is a partial response to the above mentioned 2010 Independent Evaluation Group (IEG) evaluation. It covers the specific issues to be addressed in the Water supply and Sanitation (WSS) sector and in the irrigation sector in two distinct parts, because if WSS and irrigation have some common features, there are many distinctions to be made. Among the various water-using sectors, that include navigation, fisheries, hydropower, rain fed agriculture, irrigated agriculture, WSS, and more generally 'the environment', cost recovery issues are of primary concern, and are the focus for this note, in the WSS and irrigation sectors. This preliminary background Note is divided in four parts: a 'history' of the call for financial sustainability and cost recovery and the parallel documenting of the lack of progress. This section ends with what this Note hopes to achieve in the face of what is clearly a deeply rooted problem; an outline of options to be considered for achieving financial sustainability of WSS service providers and recovering the costs of the WSS service through tariffs, i.e., from users and through subsidies; a discussion on what makes financial sustainability of irrigation projects different from WSS projects; and a summary of recommendations to teams involved in the identification, preparation, appraisal and supervision of water projects and of practical measures and actions that both the water sector board and the water anchor could take to help improve the Bank's track record in achieving and financial sustainability of the water projects it finances.
format Economic & Sector Work :: Other Poverty Study
author McPhail, Alexander
Locussol, Alain R.
Perry, Chris
author_facet McPhail, Alexander
Locussol, Alain R.
Perry, Chris
author_sort McPhail, Alexander
title Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects
title_short Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects
title_full Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects
title_fullStr Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects
title_full_unstemmed Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects
title_sort achieving financial sustainability and recovering costs in bank financed water supply and sanitation and irrigation projects
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2012/06/16588086/achieving-financial-sustainability-recovering-costs-bank-financed-water-supply-sanitation-irrigation-projects
http://hdl.handle.net/10986/17226
_version_ 1764436661980102656
spelling okr-10986-172262021-04-23T14:03:37Z Achieving Financial Sustainability and Recovering Costs in Bank Financed Water Supply and Sanitation and Irrigation Projects McPhail, Alexander Locussol, Alain R. Perry, Chris ACCEPTABLE QUALITY ACCESS TO FINANCING ACCOUNTABILITY ACCOUNTING PROCEDURES ACCRUAL ACCOUNTING AFFORDABLE WATER AGRICULTURAL WATER USE AGRICULTURE ORGANIZATION AIC AQUIFERS ASSET HOLDING COMPANY AUTONOMY BAD DEBT BAD DEBTS BALANCE SHEETS BASIC SANITATION BILL COLLECTION BOREHOLES BORROWER BORROWING BUSINESS ACTIVITY CAPITAL COSTS CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CAPITAL STRUCTURE CASH ACCOUNTING CASH FLOW CASH FLOW ANALYSIS CASH FLOW STATEMENTS CASH FLOWS CASH RESERVES CENTRAL GOVERNMENT COLLECTION OF WATER CONTRACTUAL OBLIGATIONS CONTRIBUTION TO COST COST OF WATER COST RECOVERY COST RECOVERY POLICIES COVERING CREDITS CREDITWORTHINESS CUBIC METER CUBIC METER OF WATER CUSTOMER BASE DAMS DEBT DEBT FINANCING DEBT SERVICE DEMAND FOR WATER DEMAND MANAGEMENT DEMAND MANAGEMENT POLICIES DEMOCRATIC PROCESS DEVELOPMENT BANK DISCRIMINATION DISPOSAL OF WASTEWATER DRAINAGE DRAINAGE SYSTEMS DRINKING WATER EFFICIENT WATER USE EMPLOYERS ENVIRONMENTAL IMPACTS EQUITY CAPITAL EVAPORATION EXCHANGE RATE EXCLUSION EXPENDITURE EXPENDITURES EXTERNAL SHOCKS EXTERNALITIES FARMERS FINANCES FINANCIAL ANALYSES FINANCIAL ANALYSIS FINANCIAL COST FINANCIAL COSTS FINANCIAL COVENANTS FINANCIAL PERFORMANCE FINANCIAL RESOURCES FINANCIAL SUSTAINABILITY FINANCIAL VIABILITY FINANCING COSTS FIXED ASSETS FLOOD CONTROL FOREIGN EXCHANGE FULL COST PRICING FUNDING SOURCES GENDER GROUNDWATER HANDPUMPS HOURS OF SERVICE HOUSEHOLDS HYDROLOGIC CYCLE IMPLICIT TAX INADEQUATE FUNDS INCOME DISTRIBUTION INCOME STATEMENTS INDUSTRIAL USE INFLATION INTERNATIONAL BANK INTERNATIONAL WATER INVENTORY INVESTMENT COSTS IRRIGATION IRRIGATION SYSTEMS IRRIGATORS LARGE DAMS LEAST COST LOAN LOCAL GOVERNMENT LOW-INCOME HOUSEHOLDS LRMC MAINTENANCE COSTS MARGINAL COST METERING NATURAL RESOURCES NUMBER OF BENEFICIARIES OPERATING COSTS OPERATING EXPENSES OPERATING INCOME OPERATING RATIO OPERATIONAL EFFICIENCY OPERATIONAL RISK OPERATIONAL RISKS OPERATOR TARIFF PENALTIES PERFORMANCE INDICATORS PIPED WATER PRESENT VALUE PRESSURE PRIVATE OPERATOR PRIVATE OPERATORS PRIVATE PARTICIPATION PRIVATE PARTICIPATION IN WATER PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC COMPANY PUBLIC SAVINGS PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS QUALITY OF SERVICE RAIN REPAYMENT RESOURCE ALLOCATION RETURN ON ASSETS RETURN ON EQUITY REVENUE SOURCES RIVERS RUNOFF RURAL COMMUNITIES RURAL SETTLEMENTS SANITATION FACILITIES SANITATION OPERATIONS SANITATION SERVICE SANITATION SERVICE PROVIDERS SEPTIC TANKS SERVICE DELIVERY SERVICE FEE SERVICE IMPROVEMENTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SERVICE QUALITY SEWERAGE NETWORK SEWERAGE SERVICES STORM WATER SUBSIDIARY SURFACE WATER TARIFF ADJUSTMENTS TARIFF POLICIES TARIFF SETTING TARIFF STRUCTURE TECHNICAL ASSISTANCE URBAN AREAS URBAN CENTERS URBAN WATER URBAN WATER SUPPLY URBAN WATER UTILITIES USE OF WATER USER FEES UTILITIES WASTE WATER WASTE WATER TREATMENT WASTEWATER COLLECTION WATER ASSOCIATION WATER BODIES WATER COVERAGE WATER DISTRIBUTION WATER FEES WATER MANAGEMENT WATER POINTS WATER PRICING WATER PRODUCTION WATER PROJECTS WATER RATES WATER REQUIREMENTS WATER RESOURCE WATER RESOURCE MANAGEMENT WATER RESOURCES WATER RESOURCES MANAGEMENT WATER RIGHTS WATER SCARCITY WATER SECTOR WATER SERVICE WATER SERVICE DELIVERY WATER SERVICE PROVIDERS WATER SERVICE PROVISION WATER SERVICES WATER SOURCE WATER SUPPLIES WATER SUPPLY WATER SUPPLY COMPANY WATER SUPPLY SERVICE WATER SUPPLY SYSTEMS WATER SYSTEMS WATER TARIFF WATER TARIFFS WATER USE WATER USER WATER USER ASSOCIATION WATER VENDORS WELLS WORKING CAPITAL This note is a partial response to the above mentioned 2010 Independent Evaluation Group (IEG) evaluation. It covers the specific issues to be addressed in the Water supply and Sanitation (WSS) sector and in the irrigation sector in two distinct parts, because if WSS and irrigation have some common features, there are many distinctions to be made. Among the various water-using sectors, that include navigation, fisheries, hydropower, rain fed agriculture, irrigated agriculture, WSS, and more generally 'the environment', cost recovery issues are of primary concern, and are the focus for this note, in the WSS and irrigation sectors. This preliminary background Note is divided in four parts: a 'history' of the call for financial sustainability and cost recovery and the parallel documenting of the lack of progress. This section ends with what this Note hopes to achieve in the face of what is clearly a deeply rooted problem; an outline of options to be considered for achieving financial sustainability of WSS service providers and recovering the costs of the WSS service through tariffs, i.e., from users and through subsidies; a discussion on what makes financial sustainability of irrigation projects different from WSS projects; and a summary of recommendations to teams involved in the identification, preparation, appraisal and supervision of water projects and of practical measures and actions that both the water sector board and the water anchor could take to help improve the Bank's track record in achieving and financial sustainability of the water projects it finances. 2014-03-07T22:41:29Z 2014-03-07T22:41:29Z 2012-06 http://documents.worldbank.org/curated/en/2012/06/16588086/achieving-financial-sustainability-recovering-costs-bank-financed-water-supply-sanitation-irrigation-projects http://hdl.handle.net/10986/17226 English en_US Water papers; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Economic & Sector Work :: Other Poverty Study Economic & Sector Work