In line with the Monterrey Consensus and the WSSD Plan of Implementation, bearing in mind the different needs of rural and urban populations, we are committed to:
2.1 Give high priority in Official Development Aid allocation to sound water and sanitation proposals of developing country partners. This can be a catalyst to mobilise other financial flows;
2.2 Help mobilise domestic resources for water infrastructure financing through the development and strengthening of local capital markets and financial institutions, particularly by:
” establishing, where appropriate, at the national and local levels, revolving funds that offer local currency;
” appropriate risk mitigation mechanisms;
” providing technical assistance for the development of efficient local financial markets and building municipal government capacity to design and implement financially viable projects;
” providing, as appropriate, targeted subsidies for the poorest communities that cannot fully service market rate debt;
2.3 Encourage international financial institutions (IFIs) to give the necessary priority to water;
2.4 Promote cost recovery with “output based aid” approaches to ensure access to services for those least able to afford them;
2.5 Promote public-private partnerships (PPPs), where appropriate and suitable, particularly by:
” inducing private-sector investments and encouraging use of local currency;
” facilitating international commercial investment and lending through use of risk guarantee schemes;
” encouraging the harmonisation of operational procedures;
” facilitating the issue of national and international tenders;
2.6 Apply, on a voluntary basis, tools for development assistance for water and sanitation projects that may include such financing mechanisms as: concessional financing consistent with international rules on financial aid, project financing, micro and meso-financing and debt for investment swaps;
2.7 Encourage financing of sound irrigation practices;
2.8 Improve co-operation and co-ordination between donors, seeking better synergy among our various initiatives.