Financing Water Supply and Sanitation Investments: Utilizing Risk Mitigation Instruments to Bridge the Financing Gap: Water Supply & Sanitation Sector Board Discussion Paper Series (Paper No.4 January 2005)

TABLE OF CONTENTS:

ACRONYMS AND ABBREVIATIONS

1.      SUMMARY

Private Participation and IFI Risk Mitigation in Water Supply and Sanitation

Emerging “Hybrid” Finance Transactions and Development of Local Financial Markets

New Focus of Risk Mitigation Instruments

Wholesale Approaches

Financial Markets and Subsovereign Government Assessments

2.      INTRODUCTION

3.      WATER SUPPLY AND SANITATION AND THE FINANCING PROBLEM

4.      INVESTMENT IN WATER SUPPLY AND SANITATION INFRASTRUCTURE

5.      IFI RISK MITIGATION PRODUCTS AND THEIR UTILIZATION (2001-2003)

6.      FOREIGN EXCHANGE RISK

Local Currency Financing

Devaluation Backstop Facility

7.      CONSTRAINTS IN THE USE OF GUARANTEES

Client Government Issues

Internal Process Issues

Product Awareness Issues

8.      A CHANGING MARKET

9.      PUSH FOR FUNDAMENTAL REFORMS TO CREATE CREDITWORTHY UTILITIES AND SUBSOVEREIGNS

10.  DEPLOYING GUARANTEES TO MEET THE CHANGING NEEDS OF THE MARKET

Enhancements for Hybrid Financing Arrangements

Mitigation Foreign Exchange Risk

Changing the Approach to Meet the Needs of a New Market

Proposed Financing and Risk  Allocation Framework for Water Investments

BIBLIOGRAPHY

Annex 1: Overview of Risk Mitigation Instruments Available through IFIS

Annex 2: Use of World Bank Guarantees in Support of Output-based Aid Schemes

List of Figures

Post Date : 21 Februari 2006