Water Finance
Water provision is fundamentally a local responsibility.
Throughout the world, most national governments are in the
process of decentralizing both programmatic and financial
functions. Municipalities are financing infrastructure projects,
including new or upgraded water and wastewater systems, with
backing from USAID's partial guarantees. USAID Missions in
South Africa, India, the Philippines, and Morocco, for example,
use credit guarantees to (a) direct bank loans to municipalities
or water authorities, (b) support bond issuances by water
authorities, and (c) promote the extension of loans for rehabilitation
and expansion of existing water facilities. USAID projects
in Egypt, India and South Africa will mobilize private-sector
financing for municipalities and water authorities to purchase
water meters, wastewater equipment, upgraded technologies
and ancillary facility services.
At the August 2002 World Summit on Sustainable Development
(WSSD), Secretary Powell announced the USG commitment to improve
poor peoples' access to safe drinking water as a presidential
signature initiative called "Water for the Poor".
A commitment was also made to work closely with Japan on the
issue of clean water.
USAID has a key implementation role for this commitment and
credit guarantees are innovative and flexible tools to support
such initiatives.
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