PPP Development Stage – Financing (Investments)

12.6 What are the key issues relating pro-poor PPPs?

The main priority for PPP projects is always to ensure that all segments of the population, including poor people and ethnic minorities, have access to basic services. This aspect has to be kept in mind during all stages of PPP design and especially while considering investment financing.

International development aid and development debt financing are available for projects targeted at the poor. The goal of the financial instruments used is to ensure that following the private sector involvement, all population groups have access to the basic services.

In general, it is a sound principle for the full cost of water provision to be the basis for customer tariffs. However, there is no need for an automatic rejection of all subsidy arrangements, given that water is an essential service. See [Tool 13] for details on pro-poor subsidies.