Welcome back to the OA Ambassador Spotlight Blog!

Our OA Ambassadors raise awareness in their local communities about global OA movements as well as related opportunities through IWA Publishing. They are representatives of both the International Water Association and IWA Publishing and our joint goals to empower the next generation of water leaders and to shape the future of the water sector. These blog posts highlight their specialty and research focus, as well as emphasising the importance of Open Access publishing. 

Kator Jethro Ifyalem is a civil engineer and MSc student from Ahmadu Bello University Zaria, committed to environmental sustainability. Explore Kator's previous blog posts here, or connect with him on LinkedIn!

Water is a critical resource for human health, economic development, and environmental sustainability. However, access to safe and reliable water services is often limited in low and middle-income countries. This is due to several factors, including inadequate infrastructure, insufficient funding, and poor governance.

Innovative financing models are needed to address the challenges of financing water infrastructure and services in low and middle-income countries. These models can help mobilise new capital sources, improve efficiency, and ensure that water services are affordable and accessible to over 2 billion people without access to clean water.

Some of the most common models include:

• Public-Private Partnerships (PPPs): PPPs are arrangements between governments and private companies to deliver water services. PPPs can help to mobilize private sector investment and expertise, which can be used to improve the efficiency and effectiveness of water services.
• Blended Finance: This is when a combination of public and private capital is used to finance development projects. Blended finance can help to reduce the risk of investment and attract private sector capital to projects that would otherwise be too risky for private investors.
• Water Funds: This is a type of trust fund that is used to finance water conservation and development projects. Water funds can help to leverage public and private resources to address water scarcity and improve water quality.
• Social Impact Bonds: SIBs are a type of financial instrument that is used to finance social programs. SIBs work by linking the payment of investors to the achievement of specific social outcomes. They can be used to finance water projects that improve access to water services for the poor.

There are many benefits to using these models, including:

• Increased investment and mobilization of new sources of capital for water projects. This can help to close the funding gap for water infrastructure and services.
• Improved efficiency of water service delivery. This can lead to lower costs for consumers and governments.
• Increased access to water services for the poor. This can improve health, reduce poverty, and boost economic growth.

However, there can also be drawbacks or challenges to using different financing models:

• Many governments and water utilities are not familiar with innovative financing models, meaning they can be difficult to design and implement.
• Investors may be reluctant to invest in water projects due to the perceived risks. This can make it difficult to mobilize private capital.
• Some countries have regulatory barriers that make it difficult to implement innovative financing models. These barriers need to be addressed to make these models more widely available.

Innovative financing models can play a critical role in financing water infrastructure and services in low and middle-income countries. These models can help mobilise new capital sources, improve efficiency, and increase access to water services for the poor. However, there are a few challenges that need to be addressed to make these models more widely available.

Despite the challenges, there is a growing interest in novel financing models for water services in low and middle-income countries. This interest is driven by the need to address the water crisis and the growing recognition that traditional financing models are not enough to meet the challenge. Innovative financing models offer a promising way to meet the growing demand for water infrastructure and services in these countries.