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 . This happens through 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 was 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 credits''' <br>
Carbon 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).
==Examples==
====Chile: loans for sewerage connection====
In a financing model introduced by the Municipal Works Company of Santiago (EMOS) in Chile, poor households can apply for loans to finance the connection costs to the sewerage network (Sijbesma, 2011). Loans can last for a duration of 12, 24, 36 or 60 months. Eligibility and duration are based on the city’s social services department’s classification of each household. Households are expected to repay loans, in addition to meeting their respective monthly [[Tariffs|tariff]]. The ultra-poor pay between US$ 5 and US$ 10, in ten installments.
====Vietnam: loans for households to construct latrines or connect to a water supply====
In Vietnam, the National Social Development Bank administers a government loan scheme where households can take out a loan for a sanitary toilet and/or a water supply connection (Sijbesma, 2011). Each household can take a loan of up to VND 3 million for a toilet, and the same amount for a water supply provision or connection. Together, the sanitation and water loans constitute about 7% of the total loans portfolio of the bank.
==Key documents==
* Hervé-BazinCarbon credits: potential source of funding for wastewater treatment projects, C., 2012. [http://celinehervebazinwww.filessource.wordpressirc.comnl/2012page/03/eureau-3ts-short-guide-version48222 E-internet.pdf ''3Ts'': tariffs, taxes and transfers in the European water sector: short guideSource]. Brussels, Belgium: EUREAU 19 May 2009* OECD , 20092010. [httpCivil society and aid effectiveness://www.oecd.org/tad/sustainableagriculture/44476961.pdf Managing water for all: an OECD perspective on pricing Findings, recommendations and financing]good practice. Paris, France: OECD.* OECD (2012). [http://stats.oecd.org/Index.aspx?DatasetCode=CRSNEW Creditor Reporting System] [online database]. Paris, Organisation for Economic Co-operation Co‐operation and Development./ Development Assistance Committee* • Pezon, C., Fonseca, C. and Butterworth, J., 2010. [http://www.irc.nl/content/download/152801/519929/file/02_Background_Paper_zw.pdf IRC Symposium 2010 Pumps, Pipes and Promises: background . Background paper: pumps, pipes and promises: costs. Costs, finances and accountability for sustainable WASH services]. The Hague, The Netherlands: IRC International Water and Sanitation Centre. * • Saywell, D. and Fonseca, C., 2006. [http://www.lboro.ac.uk/well/resources/fact-sheets/fact-sheets-htm/mcfs.htm Microfinance for Sanitation]. WELL factsheet. Loughborough: WELL/WEDC- Water, Engineering and Development Centre, Loughborough University of Technology.• Sijbesma, C., 2011. [http://www.irc.nl/home/information_services/publications/publications_by_date/sanitation_financing_models_for_the_urban_poor Sanitation Financing models for the urban poor]. Thematic Overview Paper 25. The Hague: IRC International Water and Sanitation Centre (Published November 2011). • Verhoeven, J., Uytewaal, E. and de la Harpe, J., 2011. [http://www.irc.nl/home/information_services/publications/publications_by_date/aid_effectiveness_in_the_water_and_sanitation_sector Aid effectiveness in the water and sanitation sector: policies, practices and perspectives]. (Thematic Overview Paper 26) The Hague: IRC International Water and Sanitation Centre.• Water Institute, 2012. Carbon credits and HWTS : a viable "green" funding mechanism? Webinar, 17 July 2012. Chapel Hill, NC, USA, The Water Institute, Gillings School of Global Public Health, University of North Carolina at Chapel Hill• WHO and UN-Water, 2012. [http://washurlwww.who.netint/water_sanitation_health/publications/glaas_report_2012/6jo133 en/index.html UN-Water global annual assessment of sanitation and drinking-water (GLAAS) 2012 report: the challenge of extending and sustaining services]. (UN-water global annual assessment of sanitation and drinking-water (GLAAS) report; 2012). Geneva, Switzerland: World Health Organization (WHO).* • Winpenny, J., 2011. [http://www.gwptoolbox.org/images/stories/Docs/euwi%20fwg%20primer%20on%20financing%202011.pdf Financing for water and sanitation: a primer for practitioners and students in developing countries]. Stockholm, Sweden: The European Union Water Initiative Finance Working Group, EUWI-FWG.
==Links==