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Transfers refer to funds from international donors and charitable foundations (, including non-governmental organisations, decentralized cooperation or local civil society organizations) that and typically come from other countries (GLAASWHO and UN-Water, 2012). These funds can be contributed in the form of grants, concessionary loans (i.e. loans that include a “grant” element in the form of a subsidized interest rate or a grace period) or guarantees.
For an overview of transfers available for water, sanitation and hygiene (WASH) projects or businesses in developing countries see [[Transfers include any contributions from available for water, sanitation and hygiene (foreignWASH) donors ]]. Transfers can be made in the form of:• [http://en.wikipedia.org/wiki/Grant_(Hervémoney) Grant]; non-Bazinrepayable funds disbursed by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal or an application is usually required. Most grants are made to fund a specific project and require some level of compliance and reporting.• [http://en.wikipedia.org/wiki/Loan Loan]; the borrower initially receives or borrows an amount of money from the lender, 2012) and can consist is obligated to pay back or repay an equal amount ofmoney to the lender at a later time. Most commonly used loans in the water and sanitation sector are:o [http://en.wikipedia.org/wiki/Concessionary_loan Concessionary loan]; is a loan bearing no interest or a rate of interest that is below the average cost. * Subsidies o [http://en.wikipedia.org/wiki/Microcredit Microcredit] is a very small loan extended by a bank or other financial organisations that provide services to poor households (Saywell and Fonseca, 2006).• [http://en.wikipedia.org/wiki/Surety Guarantee]; a promise by one party to assume responsibility for example from the European Uniondebt obligation of a borrower if that borrower defaults. The person or company that provides this promise, is also known as a surety or guarantor. In many developing countries, transfers remain a major source of financing for sanitation and drinking-water, mostly for [[Capital_Expenditure_(CapEx)|capital expenditure]] (WHO and UN-Water, 2012). Over US$ 8.9 billion in [http://en.wikipedia.org/wiki/Official_development_assistance official development assistance (ODA)* ], part of transfers, was directed to sanitation and drinking-water in 2009 ((WHO and UN-Water, 2012). Official development assistance for sanitation and drinking-water accounts for more than 1% of Gross Domestic Product (GDP) in seven developing countries (ODAsee table 1)* Philanthropic donations.
==Examples==
In many developing countries, transfers remain a major source of financing for sanitation and drinking-water, most for [[Capital Expenditure (CapEx)|capital expenditure]] (GLAAS, 2012). Over US$ 8.9 billion in official development assistance (ODA), part of transfers, was directed to sanitation and drinking-water in 2009 (GLAAS, 2012). It accounts for more than 1% of Gross Domestic Product (GDP) in seven developing countries (see table 1).
'''Table 1. Top WASH recipients by official development assistance (ODA) % of Gross Domestic Product (GDP)'''
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Source: GLAASWHO and UN-Water, 2012, page 27
[http://en.wikipedia.org/wiki/Official_development_assistance Official development assistance (ODA) ] for drinking-water and sanitation has risen slowly as a percentage of total development aid since the low point of 2002, but is still significantly below aid for social sectors, such as health and education (see figure 1).
'''Figure 1. Trends in official development assistance (ODA) for water and sanitation,<br> education, and health/population/HIV/AIDS, as a percentage of total ODA commitments, 1995–2010'''
[[Image:Transfers fg 1.jpg|thumb|none|600px|Source: OECD, 2012/ GLAASWHO and UN-Water, 2012, page 51]] Transfers can be made in the form of budget support where funds are transferred directly to the recipient government, thereby enabling the government to manage the aid as part of its own resources and help finance the implementation of their policies (Verhoeven, Uytewaal, E. and de la Harpe, 2011). With budget support the funds are channelled through the systems used for a government's own-funded expenditures as the government's finance ministry (or "treasury"), from where it goes, via regular government procedures, to the ministries, departments or agencies responsible for budget execution (Williamson and Dom, 2010). The main types of budget support are (Verhoeven, Uytewaal, E. and de la Harpe., 2011):• General budget support (GBS); funds that are not earmarked for a specific sector of government spending• Sector budget support (SBS); funds are allocated for use in a specific sector or budget line, e.g. water and sanitation. Sector budget support from donors for WASH is only 3% of total WASH aid in 2010 (WHO and UN-Water, 2012). Donors can also use transfers to give Technical Assistance (TA) in the form of (OECD, 2010):• Grants to nationals of aid recipient countries, receiving education or training at home or abroad.• Payments to consultants, advisers and similar personnel as well as teachers and administrators serving in recipient countries (including the cost of associated equipment). Cardon creditsCarbon credits are a new potential source of funding that are already being used on a small scale for wastewater treatment projects (E-Source, 2009) and household water treatment initiatives (Water Institute, 2012).
==Key documents==