Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia

Multilateral development banks (MDBs) play a pivotal role in financing water and sanitation infrastructure projects and thus have a major impact on the development of basic services. Although information about the MDBs' investments is publicly available, it is dispersed and not easily comparable. A...

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Main Authors: Heidler, A., Nesi, Muhil, Nikiema, J., Luthi, C.
Format: Journal Article
Language:Inglés
Published: IWA Publishing 2023
Subjects:
Online Access:https://hdl.handle.net/10568/130194
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author Heidler, A.
Nesi, Muhil
Nikiema, J.
Luthi, C.
author_browse Heidler, A.
Luthi, C.
Nesi, Muhil
Nikiema, J.
author_facet Heidler, A.
Nesi, Muhil
Nikiema, J.
Luthi, C.
author_sort Heidler, A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Multilateral development banks (MDBs) play a pivotal role in financing water and sanitation infrastructure projects and thus have a major impact on the development of basic services. Although information about the MDBs' investments is publicly available, it is dispersed and not easily comparable. A comprehensive compilation of MDBs' water and sanitation investments has long been lacking. To address this gap, we assess water and sanitation financing by the three MDBs most relevant to Africa and Asia between 1960 and 2020: the World Bank, the African Development Bank, and the Asian Development Bank. We compile a new dataset by drawing on 3,639 water and sanitation projects and assess territorial trends, technology choices, distribution of financial burdens, and reforms to institutional arrangements. We find that MDBs' investments align with changing patterns of urbanization and increasingly finance sanitation infrastructures including non-sewered technologies. However, our results also suggest that institutional reforms have addressed utility efficiency through investment in equipment and skills rather than through increased commercialization and private sector participation. The leverage effect of MDB investment on private financing is negligible, whereas co-financing from local governments dominates.
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spelling CGSpace1301942024-06-26T11:43:30Z Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia Heidler, A. Nesi, Muhil Nikiema, J. Luthi, C. water supply sustainable development goals goal 6 clean water and sanitation multilateral organizations development banks investment institutional reform public-private partnerships policies Multilateral development banks (MDBs) play a pivotal role in financing water and sanitation infrastructure projects and thus have a major impact on the development of basic services. Although information about the MDBs' investments is publicly available, it is dispersed and not easily comparable. A comprehensive compilation of MDBs' water and sanitation investments has long been lacking. To address this gap, we assess water and sanitation financing by the three MDBs most relevant to Africa and Asia between 1960 and 2020: the World Bank, the African Development Bank, and the Asian Development Bank. We compile a new dataset by drawing on 3,639 water and sanitation projects and assess territorial trends, technology choices, distribution of financial burdens, and reforms to institutional arrangements. We find that MDBs' investments align with changing patterns of urbanization and increasingly finance sanitation infrastructures including non-sewered technologies. However, our results also suggest that institutional reforms have addressed utility efficiency through investment in equipment and skills rather than through increased commercialization and private sector participation. The leverage effect of MDB investment on private financing is negligible, whereas co-financing from local governments dominates. 2023-05-01 2023-04-30T23:44:33Z 2023-04-30T23:44:33Z Journal Article https://hdl.handle.net/10568/130194 en Open Access IWA Publishing Heidler, A.; Nesi, Muhil; Nikiema, J.; Luthi, C. 2023. Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia. Journal of Water, Sanitation and Hygiene for Development, 12p. (Online first) [doi: https://doi.org/10.2166/washdev.2023.004]
spellingShingle water supply
sustainable development goals
goal 6 clean water and sanitation
multilateral organizations
development banks
investment
institutional reform
public-private partnerships
policies
Heidler, A.
Nesi, Muhil
Nikiema, J.
Luthi, C.
Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia
title Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia
title_full Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia
title_fullStr Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia
title_full_unstemmed Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia
title_short Multilateral development banks investment behaviour in water and sanitation: findings and lessons from 60 years of investment projects in Africa and Asia
title_sort multilateral development banks investment behaviour in water and sanitation findings and lessons from 60 years of investment projects in africa and asia
topic water supply
sustainable development goals
goal 6 clean water and sanitation
multilateral organizations
development banks
investment
institutional reform
public-private partnerships
policies
url https://hdl.handle.net/10568/130194
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