ICZM: Financing
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Financial flows[edit | edit source]
To establish projects that come from the ICZM strategy it is important to understand the financial cycle in your organization. When can you add your projects to the budgeting cycle and where does the money come from? This could be from taxes, a higher governmental layer or development banks like the Asian Development Bank or the World Bank. Furthermore, there are several funds such as the Green climate fund where an application for funding can be done.
When working on ICZM it is extremely important to make a good business case. As the authority where you have to apply for money will have to be convinced to give financial support to the proposed project. The video below shows you how to make a good business case. In this video, they speak about a company and customers, but you might replace the words with governmental organizations and stakeholders (such as the local communities).
In order to attract private (repayable) finance for ICZM projects one needs to generate revenues. This means direct cash income flows for the project initiator or developer. Yearly incomes (revenues) can be used to pay for operating costs. Coastal zones have natural resources such as beaches (can be used for recreation) and sun (can be used for solar power). These assets can produce goods or services and could be used for income generation
Also, public-private-partnerships can be explored. This is a long-term contract between the public and private sectors. It is aimed at providing a public service through the use of private sector competencies. This can include design, (re)construction and operation & maintenance of assets. This is often accompanied by private financing. Costs recovered though revenues from user charges or periodic payments from the public sector based on predefined criteria. (source Presentation Gerbrand van Bork check whether we can use this)
Further reading
- Milne, Nicole & Christie, Patrick. (2005). Financing integrated coastal management: Experiences in Mabini and Tingloy, Batangas, Philippines. Ocean & Coastal Management. 48. 427-449. 10.1016/j.ocecoaman.2005.04.004.
