Financing Waste and Sanitation

From Spending to Earning Principles for Financing Informal Enterprises

New York, 19 September 2011 Anne Scheinberg and Jacqueline Barendse WASTE, The Netherlands

Conclusion

Focus (Sanitation + Waste)

Spending Earning
Service sector + Value chain Financing informal enterprises
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Water, waste, sanitation

Health benefits Piped infrastructure Pollution

Spending models and Earning models

Spending model

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Spending model

Compensating for market failure with donations of technology, support

Earning model

Building on successful market & value chain transactions and institutions and optimising them

Peri-urban areas

These guys are extremely liquid

Introduction: Failure of the spending model

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Shifting to Earning

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Spending Earning (peri-urban areas)

Spending
What Financing Other Things / Assets Capex Large scale (Inter)national provider Grant / subsidies

Earning
Doing Opex Multiple scale Local provider Regional provider Local paying client

Earning models

Service Sector Solid Waste Sanitation

Value Chain

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Service Sector
Solid Waste

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Service Sector
Sanitation

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Value Chain
Solid Waste

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Value Chain
Sanitation Value Chain

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Earning models

Service Sector Solid Waste Sanitation + +

Value Chain +++ +/-

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Service Sector and Value Chain

Service Sector
Value Payment Driver Business type People Negative value Doing removal Polluter Doing Dumb muscles

Value Chain
Positive value Obtaining End User Demand Trading Smart muscles

Service Sector and Value Chain

Service Sector
Financing Need Risks Equipment Political favour Late payments Governance problems Vulnerability is to local circumstances

Value Chain
Working capital (trading) Global economic Situation and price fluctuations Vulnerability to global economic circumstances

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Service and Value - linkage Value Chain

Service Sector
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WASTE activities
Service Sector (pro-active) Value Chain (re-active)

Acknowledgement entrepreneurs Municipal policy plans Organise and train Safe disposal / containment

Support entrepreneurs Professionalise, organise Support and initiate research Focus on self-help, strengths and weaknesses

FINANCING Waste Ventures Informal Finance Facility

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Waste Ventures

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Informal Finance Facility

Local Banks

Informal Finance Facility

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Informal Finance Facility

Identify Product Market combinations Develop adequate financing mechanisms

Mobilise local financing partners (banks)

Build center of experience (lead partner)

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Conclusion

Focus (Sanitation + Waste)

Spending Earning
Service sector + Value chain Informal Finance Facility
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Thank you for your attention

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