What does it take to finance sustainable water supply and sanitation? The World Bank Group considers this a serious question and has partnered with Global Water Intelligence to present the key concepts of Blended Finance.
But what is blended finance and why is the World Bank talking about it?
Blended finance involves service providers using public or concessional funds with commercial funds to finance water infrastructure projects. It can draw private sector financing into these projects, while leveraging and maximizing scarce public funds. Blending finance is key to reaching the United Nations’ Sustainable Development Goals, simply because the SDGs have such substantial unmet financing needs.
Looking for every opportunity to gear the limited government resources and/or concessional funds with the domestic commercial finance to finance water supply and sanitation projects, World Bank staff and clients from a number of countries met to learn more about how to make blended finance a reality.