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Task Force on Financing Water For All

Enhancing access to finance for local governments Financing water for agriculture Chaired by Angel Gurria
rapport Mar 2006 ; 78 pages
Ed. CME - Marseille ; Isbn: 92-95017-12-9
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The Task Force on Financing Water for All was established to provide recommendations on innovative financing mechanisms and make concrete proposals for immediate action that enhance the access of local governments to financial resources for investments in water services and agricultural water management.
The Task Force has an open mandate and will continue after the 4th World Water Forum.
The tasks cover an assessment of (i) the status and trends in water financing, (ii) reasons behind current water financing trends, (iii) examples of innovative financing options being explored and tested with local governments and (iv) the future of financing for the water sector, particularly at the local government level.
The Task Force has given special attention to (i) the financing needs of local governments, especially as they are increasingly being faced with impacts that accompany decentralization, and (ii) the financing of necessary investments in agricultural water management to enhance efficiency and productivity of the sector that uses the most water.
The Task Force, however, is mindful of the equally important work of financing improvements in the management of river basins. River basins are the foundation of the water sector and a key component to ensuring that water services are sustainable. Innovative financing at increased levels will be needed for resource management, which will still depend largely on ODA and the public sector, but efforts need to be made to make this more attractive for the capital market. The Task Force will study and advocate further work in this area.
I. Introduction
The need for the Task Force
Acknowledging the demand side of financing
What has happened on the supply side?
II. The Demand Side
Providing water services: a local affair
Connecting the un-served: fair tariffs and public solidarity
Matching demand and supply: effective partnerships for project structuring
Building Capacity to translate needs into effective demand
Local capital markets - where demand and supply meet
Special attention is needed for countries where infrastructure is weak and capital markets are lacking
Investing in water still remains a low priority in many countries
III. The Supply Side
The required doubling of the total flow of funds is still far from being achieved
Effective use of funds
More financing instruments are adapted to local requirements
IV. Financing Water for Agriculture:
Filling gaps and removing barriers – a progress report
The Broad Picture
Complexity: no “one size fits all” solutions
Change is urgent and unavoidable
Transformation of institutions: new wine in new bottles
Adapting conventional sources of funds
Developing innovative solutions
Annex I List of Task Force members
Annex II List of action cases
Annex III Selected Extracts of Case Studies

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