World Bank and Water
The World Bank is the largest external source of financing for water projects. A strategic review of the World Bank's involvement in the water sector, "Sustaining Water for All in a Changing Climate" (2010), reaffirmed the relevance of core business themes: infrastructure for access, integrated water resources management, and capacity building for results-based decision making. In this context, the World Bank is defining a new vision for water that places increased emphasis on five strategic goals:
• Preparing client countries for a future of higher food and energy prices, more volatility, and more extreme weather
• Helping countries get water "right" in other sectors, such as energy, agriculture, and the environment
• Adopting an integrated "nexus" approach to water, initially in six geographic areas: India, Kenya, megacities in Latin America, the Mekong Delta, Nigeria, and the Western Balkans
• Advancing global knowledge on water and building stronger institutional frameworks for water management across sectors, as well as national and regional boundaries
• Committing to longer-term engagements, focusing on water basins
IFC and Water
Water, wastewater, solid waste, and district heating are fundamentally linked to the quality of life and efforts to alleviate poverty in developing countries. IFC supports both public and private projects that increase access and efficiency for water and waste services at an affordable and sustainable cost to consumers.
One of the ways IFC is responding to these challenges is by enabling partnerships between governments and private operators to bring the needed capital, expertise, and technology to improve water access and services. Working alongside government, civil society, and other stakeholders, the private sector can provide complementary knowledge, experience, insights, and convening power to address critical issues of water resource management.
IFC's track record in structuring public-private partnerships (PPPs) in water is strong. Long-term evaluations of its projects prove that concessions can have a positive impact on both access and quality of services for the population. Properly structured PPPs can play an important part in responding to the global water issues of today.
MIGA and Water
MIGA guarantees are well suited to mitigating the particular risks associated with investing in water and sanitation projects in developing countries. These guarantees, covering both new investments and project expansions, help ensure that investors are able to operate in a stable and predictable environment. In addition, MIGAs support can help mobilize investment in critically needed infrastructure, including hydropower. MIGAs support to projects helps unlock market access to commercial finance, allowing projects to achieve a positive development impact for the country.