Local Financing of Water Utilities : Challenges and Opportunities - The Case of Peru

This report identifies opportunities and challenges for local financing of water utilities in Peru and suggests recommendations for removing barriers and creating incentives for scaling-up local financing to local water utilities. It was developed with an understanding that meeting the Millennium Development Goals (MDGs) in water and sanitation in Peru will require scaling up local financing for the sector and that efficiency and effectiveness can be enhanced by greater involvement of local institutional investors and other parties. This joint study exposes many of the barriers to local private financing facing the urban water supply and sewerage (WS&S) sector in Peru. In short, the majority of local water utilities cannot meet credit rating and governance standards required to access private financing. Consequently, loans from financial markets are rare. These findings are probably not specific to Peru. Accordingly, there is great value for central governments to undertake similarly detailed studies to identify the obstacles preventing access to local financing unique to their country's WS&S sector.

Bibliographic Details

Main Author:	World Bank
Format:	Energy Study biblioteca
Language:	English
Published:	World Bank 2010-06-01
Subjects:	ACCESS TO FINANCE, ACCESS TO SAFE WATER, AFFORDABLE INTEREST RATES, ARREARS, BALANCE SHEET, BANK DEPOSITS, BANKING SECTOR, BID, BOND, BOND INVESTMENTS, BONDS, BORROWING, CAPITAL MARKETS, CASH-FLOWS, CENTRAL GOVERNMENT, CHAMBER OF COMMERCE, COMMERCIAL BANKING, COMMERCIAL BANKS, CONCESSION CONTRACT, CONCESSION CONTRACTS, CONFIDENCE OF LENDERS, CONNECTION, COST OF WATER, CREDIT RATINGS, CREDITORS, CURRENCY, CURRENCY RISKS, DEBT DEFAULT, DEBT INSTRUMENTS, DEBT INVESTMENT, DEBTS, DEFAULT RISK, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DRINKING WATER, ECONOMIC REGULATOR, EXPANSION, EXPLOITATION, EXTERNAL FUNDING, FINANCIAL MARKET, FINANCIAL PERFORMANCE, FINANCIAL RESOURCES, FINANCING OF INFRASTRUCTURE PROJECTS, FOREIGN DEBT, FUNDING SOURCES, GOVERNMENT BUDGET, HOUSEHOLD CONNECTIONS, INFRASTRUCTURE PROJECT, INSTITUTIONAL INVESTORS, INTEREST RATES, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL MARKET, INVESTMENT ACTIVITIES, INVESTMENT ACTIVITY, INVESTMENT DECISION, INVESTMENT PLANNING, INVESTMENT PORTFOLIO, IPO, LEGAL ENVIRONMENT, LENDERS, LIQUIDATION, LOAN, LOCAL COMMUNITIES, LOCAL DEBT, LOCAL FINANCIAL MARKETS, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LOCAL INVESTORS, LOCAL SUPPLY, LOCAL WATER, LOCAL WATER UTILITIES, LOCAL WATER UTILITY, MAIN URBAN AREAS, MARKET LIQUIDITY, MARKET STRUCTURE, MATURITIES, MATURITY, MUNICIPAL GOVERNMENTS, MUNICIPALITIES, NUMBER OF CONNECTIONS, OPERATIONAL PERFORMANCE, PENSION, PENSION FUNDS, PENSIONS, PRIVATE FINANCING, PRIVATE OPERATORS, PRIVATE PARTNERSHIPS, PROVISION OF WATER, PROVISION OF WATER SUPPLY, PUBLIC SERVICES, QUALITY OF SERVICE, RISK MITIGATION, ROADS, SANITATION, SANITATION SECTOR, SAVINGS, SEWERAGE, TARIFF LEVELS, TARIFF SETTING, TECHNICAL ASSISTANCE, TRANSPARENCY, URBAN AREAS, URBAN WATER, URBAN WATER SECTOR, URBAN WATER UTILITIES, USERS, WASTE WATER, WASTE WATER TREATMENT, WATER OPERATORS, WATER SECTOR, WATER TREATMENT PLANTS, WATER UTILITIES,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20100905235429 http://hdl.handle.net/10986/2899
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