Innovative Financing, Climate Resilience and Market-Based Solutions for Utility-Led Water and Sanitation

Faustina Boachie

Facilitator

date
place
Wien 1 (Hybrid, FR-ESP-ENG)
theme
#6
organization
VEI B.V.
country
Ghana
www
Human right to water and sanitation: Leaving no one and no place behind|Innovation in water and sanitation services management
www
Water Operators' Partnership for impacts|Enabling WOPs and operators
language
English

Summary

This session will explore best practices/models for utilities through partnerships, the private sector, and innovative financing through three transformative and scalable examples:
1) How Ghana Water Ltd's (GWL) Social Connection Fund (SCF) serves as an innovative utility-led mechanism advancing equitable water access for underserved urban populations in Ghana.
A concise SCF model will be presented and discussed, offering multi-stakeholder perspectives on utilities addressing systemic inequalities through localized financing. The session highlights practical approaches for pooling funding to subsidize low-income connections and explores sustainable scaling pathways, particularly tariff-based surcharges.
The session part will be demonstrating how cross-sector collaboration and utility reform operationalize water rights without external funding dependence.
2) Next Generation Sanitation (NGS) – is the UN Sanitation & Hygiene Fund’s transformative approach to address the sanitation crisis through non-sewered solutions and the power of markets. NGS combines public sector mandates with the private sector, creating new opportunities for scale and sustainability in sanitation. This part of the session focuses on how public sanitation utilities in low-income urban areas can leverage NGS to scale up service delivery by strengthening utility capacity, engaging local private providers, and mobilising financing. A highlight will be the experience in Kampala, Uganda, where the Kampala Capital City Authority (KCCA) has operationalized NGS principles, for example, through results-based financing agreements, and by formalizing faecal sludge management services via Service Level Agreements with private operators.
3) This presentation highlights climate challenges faced by water utilities in Burkina Faso, focusing on mitigation measures that also improve financial performance. It presents ONEA’s efforts to reduce greenhouse gas emissions, lower operational costs, and maintain water and sanitation services. Key initiatives include renewable energy use, biogas production, decentralized sanitation, reforestation, and climate partnerships. The presentation explores how these actions enhance sustainability and cost-efficiency, while addressing implementation challenges. It also showcases funding-seeking projects and emphasizes the importance of mitigation alongside adaptation, supported by good governance and innovative, cost-effective practices in the water sector.

Objectives

The overarching goal of the paper is to demonstrate how utilities can confront inequality and inclusion through innovative, local financing mechanisms. Specific objectives include:
● Present the SCF as utility-led innovation transforming inequality through local resources
● Foster dialogue on future SCF financing, particularly tariff-based surcharges for sustainability
● Illustrate partnerships mainstreaming water rights into practice and inspire SCF replication across Global South urban contexts.
● To demonstrate the potential of Next Generation Sanitation, market-based solutions & private sector partnerships for strengthening utilities’ capacity to deliver inclusive sanitation services in low-income urban areas.
● To showcase the Kampala case study as a real-world example of NGS in action, which resulted in nearly double waste collection through results-based financing.
● To highlight how effective public-private partnership models and financing mechanisms for scaling sanitation, such as utility-led partnerships with local SMEs, supported by catalytic funding and performance incentives, can simulate market growth.
● Raise awareness among participants about the opportunities offered by mitigation measures to sustain the performance of water utilities.
● Share concrete experiences & solutions in response to climate challenges.
● Foster networking with utilities facing similar challenges.
● Develop partnerships around climate financing, training & technology transfer

Partners

Organization
Country
Ghana Water Ltd
Ghana
The UN Sanitation and Hygiene Fund
Kenya
Office National de l Eau et de l Assainissment ONEA
Burkina Faso

Session panelists

Panelist
Role
Organization
Country
Mr. Kwabena Gyasi-Duku
Director of Water
Ministry of Works Housing and Water Resources
Ghana
Mr. Saïdou Koalga
Senior Technical Advisor
Deutsche Gesellschaft fur Internationale Zusammenarbeit GIZ GmbH
Burkina Faso
Mr. Nipomoussi Isaï Bombiri
Environmental Engineer
Office National de l Eau et de l Assainissment ONEA
Burkina Faso
Mr. Anton Jantunen
TBD
The UN Sanitation &amp Hygiene Fund
Switzerland