Notes on Financing Mechanisms and Measures NO Financing mechanisms and Measures Features Subsidy by the government The aim is to reduce the population who have no access to clean water Rural areas Low income groups Food and water insecured areas Drought and disaster prevention Community partial contribution for full The beneficiaries are the community themselves. It is a way towards full cost recovery” Organization and management costs and 10 to 20% capital costs Contribution through Community development fund for the works of self-water supply Public in kind contribution and public works with very low cost such as; Productive safety net programme (PSNP) water catchment projects Microfinance, credit and saving associations The fund transfer will be speed up. The degree of revolving funds loan to community, individuals, usage of funds and follow up of implementation groups for construction of self-water supply and fur would be to adequate level due to proximity water utilities of rural businesses Instead of the woreda which have no direct relation to community, the microfinances can communicate These also grant loans to communities for easily to communities committees, who are project communities to enable them pay their part of holders contribution for RWSSP and WASH The inistitutes are also being used as a transfer media to rural areas where banks do not have access Loan donation and Aid Until full cost recovery is sustained international loan, Aid flows to the water sector should continue to increase and to align with country-owned strategies; They should be used strategically to complement and reinforce . Tariff by Segmentations of user Tariffs are set in rural areas with the aim of Flat rate social tariff recovering operation and maintenance costs; Low band then progressive user charges while, in urban areas, aim at total cost recovery Business use tariffs through time (which covers operation & maintenance costs, depreciation and debit servicing). In the urban areas, after the lower band, tariff rates are implemented on progressive basis, that are tied to consumption levels. Funds raised through Business plan focusing a right are the ultimate financial sources of mix of the taxes, tariffs and transfers the investment for the water sector: – “3T” This applies to five Towns, including Addis It underlines the importance of strategic Ababa, for full cost recovery program and six financial planning to find the right mix of the sub towns. 3Ts for achieving water and sanitation targets, and for leveraging other sources of finance.
Notes on Financing Mechanisms and Measures NO Financing mechanisms and Measures Features Subsidy by the government The aim is to reduce the population who have no access to clean water Rural areas Low income groups Food and water insecured areas Drought and disaster prevention Community partial contribution for full Organization and management costs and 10 to 20% capital costs Contribution through Community development fund for the works of self-water supply Public in kind contribution and public works with very low cost such as; Productive safety net programme (PSNP) water catchment projects The beneficiaries are the community themselves. It is a way towards full cost recovery” Microfinance, credit and saving associations revolving funds loan to community, individuals, groups for construction of self-water supply and fur water utilities of rural businesses These also grant loans to communities for communities to enable them pay their part of contribution for RWSSP and WASH The inistitutes are also being used as a transfer media to rural areas where banks do not have access The fund transfer will be speed up. The degree of usage of funds and follow up of implementation would be to adequate level due to proximity Instead of the woreda which have no direct relation to community, the microfinances can communicate easily to communities committees, who are project holders Loan donation and Aid Until full cost recovery is sustained international loan, Aid flows to the water sector should continue to increase and to align with country-owned strategies; They should be used strategically to complement and reinforce . Tariff by Segmentations of user Flat rate social tariff Low band then progressive user charges Business use tariffs Tariffs are set in rural areas with the aim of recovering operation and maintenance costs; while, in urban areas, aim at total cost recovery through time (which covers operation & maintenance costs, depreciation and debit servicing). In the urban areas, after the lower band, tariff rates are implemented on progressive basis, that are tied to consumption levels. Funds raised through Business plan focusing a right mix of the taxes, tariffs and transfers – the “3T” This applies to five Towns, including Addis Ababa, for full cost recovery program and six sub towns. are the ultimate financial sources of investment for the water sector: It underlines the importance of strategic financial planning to find the right mix of the 3Ts for achieving water and sanitation targets, and for leveraging other sources of finance.
Input-Ethiopia-case-study-d1-1-RMH-After-Comment-1a.docx