About Financial Sustainbility
Financial sustainability ensures the continuity in the delivery of products and services related to water, sanitation and hygiene.
This means that the activities are locally financed (e.g. taxes, local fees, local financing) and do not depend on external (foreign) subsidies.
Our financial approach is built on a variety of strategies to promote mechanisms and introduce models that create incentives for various stakeholders to contribute to the financing of WASH improvements:
- Rights based approach: through local lobby, advocacy and budget tracking, communities will be empowered to express their needs and demands to their local, regional and national authorities for adequate budget allocation and use.
- Investment loans: small local enterprises will have the opportunity to flourish by properly addressing water and sanitation in a locally regulated business sector. We support private service WASH providers that own and manage WASH services privately, as a business, and whose investment costs need to be recovered from revenues.
- Local Finance First: we work towards models in which investment costs are covered as much as possible through local funding sources, e.g. from consumers, public sector and private investors, through household contributions, recurrent tax revenue, fee systems, decentralized funds and loans from local finance institutions like banks and micro finance institutes. Operations and maintenance are always paid through local financing instruments.