ABSTRACT
Urban water supply and sanitation services generate substantial benefits for human health, the economy, and the environment; therefore, ensuring the adequate financing of these services is a major policy issue for countries around the world.1 Significant financial resources are needed for investment in water and sanitation infrastructure, and to operate and maintain it, including expanding its coverage and upgrading service delivery to meet increasing social and environmental expectations. In 2006, the Organization for Economic Co-operation and Development (OECD) projected that the annual capital cost of maintaining and developing water supply and sanitation (WSS) infrastructure in OECD countries and the BRIC2 countries could amount to US$1,037 billion by 2030 (OECD, 2006). This is far higher than comparable estimates for road infrastructure (US$292 billion per year by 2030) and electricity transmission and distribution (around US$241 billion per year by 2030).
