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How can blended finance help in meeting the financing gap for reaching SDG 6?

Water.org uses grant funds to mobilise micro-finance institutions with their Water Credit programme. Photo credit to Water.org. Flickr, CC BY-NC-SA 2.0

In this episode of WASH Talk hosts Andy Narracott and Patrick Moriarty ask Sophie Trémolet of the World Bank how blended finance can close the financial gap needed to meet Sustainable Development Goal (SDG) 6. The gap is an estimated US$ 114 billion per year for construction and 1.5 times that amount for maintenance. In the podcast she explains to a non-economist audience what the challenges and opportunities are when using blended finance.

When the World Bank refers to blended finance, they mean the smart use of grant funding and concessional (low interest rate, long repayment period) finance to mobilise private (household or commercial) capital. Mrs Trémolet gives examples of the groundwork needed to make blended finance work and the smart strategies and tools available to leverage private finance. She gives tips for engaging with the Ministry of Finance and the financial sector. She warns utilities about the risks of foreign concessional financing.

Sophie Trémolet is co-author of the recent World Bank publication “Easing the transition to commercial finance for sustainable water and sanitation”. If you don’t have time to read the full report, check our her blog about it or … listen to the podcast!  Read the show notes here.

 

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