Public funding for sanitation : the many faces of sanitation subsidies : a primer

This primer addresses the provision of basic sanitation in both rural and urban contexts and therefore includes a consideration of financing for both on-site sanitation and networked sewerage in urban areas. Its purpose is to assist the reader to understand the global debate on subsidies and sanitation financing and to provide some guidance on how to select the most appropriate funding arrangements in different situations. In addition the primer aims to clarify the terminology and language used in the debate about public financing of sanitation and subsidies in particular. Part 1of the primer is an overall introduction to public financing and subsidies and discusses what needs to be financed and how. Part 2 examines the debates around sanitation subsidies, summarizes the main arguments, and lays out general principles which can promote good financial design of sanitation programs. Part 3 describes the ten types of hardware subsidies. It includes financing for software activities. In Part 4, generic sanitation systems are presented and the options for financing both their capital and operational costs are explored. The options and arguments are summarized in Part 5 and the document concludes with some general principles on making financing for sanitation effective.

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