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The Financial approaches portal illustrates a selection of approaches to water and sanitation service provision as well as some articles on project management.
== Cost recovery for operation and maintenance ==
== Cost sharing for capital investment ==
People contribute, thus enhancing ownership and ensuring that service responds to demand
(http://www.adb.org/Water/Policy/consultations/IND-2005-Consultation-Report.pdf#page=3). Tariffs based on volume are interesting, but metering is a problem and costly. Customer involvement in the process is very important. China’s Rural Water Supply program has over 90 % payment compliance in households with metered systems whereby the salaries of the operations staff are tied to monthly bill collection and raising tariffs if they do not cover operating costs
(http://www.wsp.org/publications/global_wtp_china.pdf). Cross subsidies has high potential particularly for poor slum dwellers
== Micro credit for private sector ==
== Franchising ==
Creating economy of scale, quality control and back-up support
Franchising is not used in the sector, but amply in other sectors. It could provide the economy of scale and back-up support that is now often lacking
(http://wbln0018.worldbank.org/water/bnwp.nsf/files/WSS_Franchise_published.pdf/$FILE/WSS_Franchise_published.pdf ). High potential as a model to provide necessary information, support and control
== Franchised water treatment and sales ==
Entrepreneurs treating and selling water under an umbrella organization for quality control and back-up
Experience exists with SWPs, but impact is likely to be much larger if they are grouped under an umbrella organization to guarantee quality of water and service delivery. More than 650 local entrepreneurs sell water through water kiosks to half a million poor people in Kibera (Kenya). They are now forming an association with support from WSP-World Bank, which is self-regulating and can negotiate with utility on lower block tariffs.
(http://www.wsp.org/publications/Rogues%20No%20More-Water%20Kiosk%20Operators%20Achieve%20Credibility%20in%20Kibera.pdf ). Application of franchising holds a promising potential of a high impact
(http://www.irc.nl/content/download/11496/168599/file/Uso_Efficiente_2004.pdf ). High potential as it can lead to expanded coverage and better use of water resources at low cost
== Revenue financed expansion ==
Expansion of piped system based on revenues
Common practice in utility water supply, but much less in developing countries, where often no or negative profit margins exist. It is applied in some places benefiting from increased efficiency, but insufficient to quickly speed up coverage.
== Self-financing ==