The three Ts: forms of finance
There are three major sources of funds for water and sanitation. Taxes from individuals and businesses; transfers such as overseas aid, remittances or market interest rate lending; and tariffs paid by households, businesses and governments. The provision of good services depends on effective planning of how these funds are raised, in what proportions, and how they are implemented.
Financing to achieve universal access – challenges and opportunities
There are significant financing, policy and governance gaps between aspiration and the current reality with respect to reaching every citizen with safe and affordable drinking water, adequate sanitation, and hygiene, and to eradicating the practice of open defecation. To meet these targets, as set out in the SDGs, global capital financing – mainly for the physical service infrastructure – would need to triple, and that is without considering operating and maintenance costs.