Financing Mechanisms for Wastewater and Sanitation

ADB (2016)

Published in: 2016
Pages: 45

Asian Development Bank (ADB), Mandaluyong, Phillipines. License: CC BY 3.0 IGO. ISBN 978-92-9257-585-4


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Financing sewerage and sanitation projects can be in several forms. In Kitakyushu, Japan, the central government provided subsidy to the city government in the construction of sewer lines and wastewater treatment plants. In Alandur, India, the municipality worked with a private sector partner in constructing and operating a sewerage treatment plant. In Dumaguete City, Philippines, the city government and the water district collaborated in constructing and operating the septage treatment plant and in the purchase of desludging trucks. In Baliwag, Philippines, the water district implemented a septage management project on its own, with the local government’s role limited to providing the regulatory regime and support to the advocacy campaign. In Kinoya, Fiji, methane generated by the anaerobic decomposition of organic matter in sludge of a sewerage treatment plant is recovered and earns certified emission reduction (CER) credits that result in increased revenues to the national government from the sale of CERs. Various approaches in financing on-site sanitation are also being utilized.

In Viet Nam, a sanitation revolving fund was set up to provide loans to low-income households for building on-site sanitation facilities. In Cambodia, microfinance loans for sanitation were piloted to address the challenge of reaching low-income households with improved sanitation solutions. In Maharashtra, India, sanitation campaign and awareness activities, which are conducted to generate demand and village-level mobilization, are combined with small hardware subsidies for the poorest households and monetary rewards for villages that achieve overall cleanliness. In Sri Lanka, subsidy and output-based aid (OBA) are utilized with the aim of increasing household access to sanitation. In Cambodia, the national biodigester program employs subsidy and carbon credits to encourage the use of biodigesters among farming communities. In Nepal, an OBA scheme uses performance based grants to support the delivery of basic services to poor households that have traditionally been left out or provided with poor quality service. Table 1 shows a summary of financing mechanisms adopted by the countries.

Bibliographic information

ADB (2016). Financing Mechanisms for Wastewater and Sanitation. Asian Development Bank (ADB), Mandaluyong, Phillipines. License: CC BY 3.0 IGO. ISBN 978-92-9257-585-4

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Financing Mechanisms for Wastewater and Sanitation

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