Attracting capital investment to finance water projects
To achieve global water security, the availability and accessibility of capital for water related infrastructure and projects is commonly considered critical and challenging. But public financial resources are increasingly constrained.
Yet, the finances needed to meet Sustainable Development Goal 6 – clean water and sanitation for all – is two to four times larger than current financial flows, particularly in emerging markets and developing economies. To fill the financing gap, commercial finance is therefore needed, although it is hampered by the high-risk profiles of many water investments: deals are too small or too risky, and the creditworthiness of water agencies and municipalities is weak. The lack of bankable projects is often referred to as a fundamental issue for mobilising commercial finance at scale into water investments.
Understanding water finance
Realising this, the Netherlands Water Partnership (NWP) and its member IHE Delft Institute for Water and Education have teamed up to develop a new short course on water finance for water professionals. This course increases the understanding of the requirements that water related projects must meet in order to become bankable and consequently more attractive to commercial capitals. The course consists of a four day programme and provides vital understanding of the many facets of, and perspectives on, water financing and reviewing the criteria for 'bankable' projects while introducing the basics of project finance. Participants will learn how to identify the sources of financing that can be used for water and water infrastructure projects, as well as how partial public finance, risk mitigation instruments and smarter regulation can remove barriers to private investment. The course emphasises applying knowledge gained to real-world examples and it ends with an opportunity to discuss and share knowledge and experiences with a panel of experts.
The course is designed for professionals, managers and executives of government agencies and NGOs who want to acquire a better understanding of the complex world of financing water infrastructure. It will influence and inspire water professionals to bridge the gap between the finance and water sectors to meet the water challenges in their countries.
Further information about the course and admission can be found here.
For additional queries, please contact either Josephine Damstra, NWP Project Officer Finance for Water, at email@example.com or Dr Yong Jiang, IHE Delft Institute for Water Education, at firstname.lastname@example.org.