Making funds available for the sector is not only critical to extend infrastructure, but also for software components, such as building institutional capacity, monitoring and regulation.  Ensuring efficiency and equity in the use of these funds is also critical, especially in light of limited public funds and the challenging task of achieving universal and sustainable access to water and sanitation services by 2030. In this context, leveraging funds from the private sector, including from households, and supporting private sector participation in the delivery of water and sanitation services will also prove to be essential, although this will take different forms in different country contexts.

At Aguaconsult, we advise governments, bilateral and multilateral financing organisations, and NGOs on optimum financing strategies for water and sanitation services. We focus on public finance analysis and the design of public finance frameworks for water and sanitation services, both at national and local levels. We also advise governments and development partners on how to maximise the use of existing funds and mobilize additional finance from alternative sources, including private sectors and commercial lending institutions. We assess the use of innovative financing mechanisms, including microfinance and results-based approaches. We also review and advise on contractual arrangements with the private sector, whether in the context of urban utilities, small, piped water schemes in rural areas, or decentralised faecal sludge services, with the view to ensure a balanced risk allocation and that the right incentives are in place for performing and equitable services.