Financing and cost recovery: What happens after construction?

WATER AND SANITATION PROJECTS are known to bring wider economic benefits to communities in the form of health, opportunities for women and poverty reduction. Given the overall societal gains that can be achieved, water and sanitation services should be improved, especially for the poor. However, the challenge to finance new projects and increase sustainable access to water and sanitation services is particularly acute, largely due to lack of ability to generate funds for operations, maintenance, expansions and upgrades, coupled with insufficient institutional and administrative capacity.