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Financing Sources - Introduction

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→‎Financing sources and costs of water and sanitation service delivery

====Financing sources and costs of water and sanitation service delivery====

IRC International Water and Sanitation Centre presented a generalisation (Pezon et.al, 2010, page 7) of how the [[Costs of WASH Service Delivery - Introduction | costs of water and sanitation service delivery]] are covered by the main sources of financing.

 

<center> '''Table 1. Generalisation of existing financing sources to cover costs of water and sanitation service delivery''' </center>

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|Construction of new system

|<font color=limegreen>'''Tariffs'''</font> <br><font color=dodgerblue>'''Transfers'''</font>|<font color=limegreen>'''Tariffs'''</font>||<font color=dodgerblue>'''Transfers'''</font>|<font color=limegreen>'''Tariffs'''</font><br> <font color=dodgerblue>'''Transfers'''</font> <br><font color=orange>'''Taxes'''</font>|<font color=limegreen>'''Tariffs'''</font>|-|Existing system||<font color=limegreen>'''Tariffs'''</font>|<font color=limegreen>'''Tariffs'''</font>|<font color=orange>'''Taxes'''</font>|<font color=dodgerblue>'''Transfers'''</font>|<font color=limegreen>'''Tariffs'''</font>|-|Upgrading existing system|<font color=dodgerblue>'''Transfers'''</font>|<font color=limegreen>'''Tariffs'''</font>||<font color=orange>'''Taxes'''</font>|<font color=dodgerblue>'''Transfers'''</font>|<font color=limegreen>'''Tariffs'''</font>|}<center>Source: Pezon et.al, 2010</center>  As shown in table 1 (see above), tariffs are mostly used to cover [[Operational and Minor Maintenance Expenditure (OpEx)|operations and minor maintenance expenditure]] and the [[Cost of Capital (CoC)|cost of capital]]. Transfers are mostly focused on [[Capital Expenditure (CapEx)|capital expenditure]] and [[Expenditure Indirect Support (ExpIDS)|indirect support]]. Taxes are used to cover [[Expenditure Direct Support (ExpDS)|direct support]]. [[Capital Maintenance Expenditure (CapManEx)|Capital maintenance]] is underfunded.T

====Financing sources in Europe====

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