International financial institutions (IFIs)
WSUP supports governments and IFIs to bridge the gap between large-scale infrastructure investment and the specific processes and services required to ensure that these investments actually benefit low-income residents.
For example, in Lusaka, Zambia, a major new investment programme is improving sanitation across the city. The Lusaka Sanitation Program aims to provide adequate sanitation facilities to all urban citizens of the Province of Lusaka. It has US $390 million of financing from a consortium of investors including the World Bank and has the potential to reach over 1 million people.
Contrary to popular belief, low-income households are generally willing to pay for affordable and good standard of products and services for improved water and sanitation.
For example, in the water sector, residents can sometimes pay up to 10 times more for water when they buy from informal vendors compared to a legal connection installed by a utility. WSUP supports and enables them to invest in affordable services, through approaches that are financially viable.
In Mozambique, households are required to co-fund the construction costs of toilets, as this is a vital part of promoting financial viability and ownership of the facilities.
Public finance contributions help to endorse government policies and strategies for improved urban water and sanitation services as well as bridging financing gaps to ensure sustainability.
By working with central and local government institutions, WSUP enables public investments in citywide water and sanitation service delivery. These lead to increased IFI support as well as de-risking investment opportunities, increasing private sector engagement.
In Kenya, we have been researching if a potential sanitation surcharge can improve sector funding.
Private sector finance
WSUP helps companies to develop and scale up services through supporting on business modelling, operations and strengthening engagement with the public sector. This support enables the private sector to contribute its resources to improving services.
In Bangladesh, we are supporting businesses in Dhaka, Chittagong and Rangpur to deliver septic tank emptying services for residents of informal settlements, under the SWEEP partnership model: contributing resources to benefit hundreds of thousands of urban Bangladeshis.
The investment [from WSUP, thanks to a grant from the Australian Department of Foreign Affairs and Trade, DFAT] has impacted positively on private sector growth through WSUP support to two FSM operators.”