Asian Development Bank

Financing Mechanisms for Wastewater and Sanitation Asian Development Bank

This publication is a guide for government and city planners to identify financing mechanisms as they develop their own wastewater and sanitation projects. Case studies culled from various countries provide insight on various financing instrumentalities (subsidies, outputbasedor performance-based aid, carbon credits, and revolving funds) and financing arrangements (local government-water utility operator and public-private partnership) available to support the sanitation agenda. Financing flowcharts should help planners visualize the flow of funds and identify funding sources, including grants and loans. Examples of financing mechanisms can help cities identify business models they can adopt given their specific circumstances.