Governments alone cannot cover the needs. Fiscal constraints mean that public water and sewer utilities must often rely on loans without sovereign guarantees; at the same time, international banking regulations have made commercial banks less willing or able to provide long-term financing. That’s where IDB Invest comes in.
We offer a range of non-sovereign financial products to state-owned enterprises—and add value by strengthening social and environmental aspects of the projects being financed. We also work with the state-owned utilities to improve the efficiency of their operations, strengthen their corporate governance practices and improve their eligibility for commercial financing.
Public-private partnerships (PPPs) are another way to take on large water and sanitation infrastructure projects. The private sector has a strong track record in developing, executing, maintaining and operating water-related assets and could improve the efficiency and quality of services. The IDB Group—the IDB and IDB Invest together—can work alongside governments and state-owned enterprises to help develop proper PPP regulatory frameworks and structures for private investment. The potential in this sector goes well beyond production and distribution of drinking water and the collection and treatment of wastewater.
Here are just a few related areas where the IDB Group could provide financing or advisory support:
- Solid waste management, including waste-to-energy solutions.
- Desalination and industrial water and wastewater treatment.
- Smart water infrastructure technology to identify leaks and reduce losses.
- Energy efficiency.
- Reuse of water.
The IDB Group’s knowledge of the region and experience in both the public and private sectors, combined with our technical capacity to develop innovative financial and non-financial products, make us a logical place to turn for solutions.