Water Finance

Introductions

Trudi Schifter
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Started by Trudi Schifter on
10 Feb 2012 at 14:45
CEO, AquaSPE
Know-how: Software & Services, Water, Venture Capital, C-level

Please introduce yourself, what experiences you have to share on this topic, and what you would like to learn here.

Comments

Stella Thomas
Hello David,

I am very happy that you have created this particular group on Water Finance and greatly look forward to engaging in discussions. I greatly look forward to learning about your experiences (and those of others) with various pricing structures across the world both in developing and developed economies and what works and what does not.

I believe that if we begin to understand the value of water and price it appropriately, there will be increased investments in infrastructure financing and sustainable access to all can eventually become a reality. The most important factor is that cost structures must reflect not only the cost but also the externalities associated with running and maintaining water systems. Reinvestment into municipalities is a must along with creative financing structures that ensure a minimum allowance for those who cannot afford and a higher tariff for those who consume more and are on the higher end of the tariff scale.

For poorer communities where funds are lacking, community involvement is crucial, as a sense of ownership by the community attributes to a more efficient and cost-effective system. A good example of good water pricing with community involvement is in Porte Alegre, Brazil. Here, an independent municipality provides a social rate (subsidized by the larger consumers) to the poor. The entire process is very transparent and involves the poor participating in the decisions of the municipality, and then any profits are re-invested in order to expand the network.

Look forward to learning of other innovative pricing schemes for water management. Thank you!

David Lloyd Owen
I am David Lloyd Owen, a water and wastewater consultant and manager of this group.

I have been looking at water finance since 1988 and have published four books on urban water utility markets and two books on water finance. Last year I completed a survey for the OECD considering how much needs to be spent to ensure universal access to sustainable water and wastewater services by 2050.

I am keen to exchange ideas and insights into how much it costs to provide these services, how they are financed and how we can make sustainable access universal and affordable.
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