The water sector's thirst for money is enormous. Three times the current level of global investments will be needed to meet the Sustainable Development Goals related to water and climate. Where will that kind of money come from? The 10^th issue of the Danube Water Program's KnowNow webinar series provided valuable insights and answers.

“Make it rain - Water Utility Financing in the Danube Region” was the event title, and World Bank Senior Water Specialist Patricia Lopez took the stage as moderator. In her introductory presentation Ms. Lopez walked the audience through the World Bank's recently updated strategy framework “Scaling up Finance for Water”.

Aware of the fact that the global water sector needs investments to the tune of 6.7 trillion USD by 2030, and 22.6 trillion USD by 2050, the World Bank has prioritized water at the highest level among the issues requiring fast-track action.

Making ends meet will require mobilizing every available source, both additional public allocations and private sector financing. Which is where the World Bank Group comes in with the strategy framework “Scaling up Finance for Water” and a 10-step roadmap for water sector financing, with capacity building to support the foundations of creditworthiness topping the list, turning around the technical, operational and financial performance of utilities to make them bankable at the core, innovative financing options as a key to solutions, and a coordinated approach with stakeholders and sector financiers as a way forward to optimize financing efforts. 

Following up, Lyubomir Filipov, Director of Strategic Partnerships and Regulation at Sofia Water, brought firsthand experience with smart financing to the stage.

Mr. Filipov reminded the audience that, mostly preoccupied with technical issues, the water sector tends to underestimate the importance of financial efficiency, a mistake the Sofia Water management avoided. In the low interest rate environment of 2016, they decided to refinance, and Mr. Filipov explains in detail how the company cut a deal that took Sofia Water from 50 million Euros debt back then to today's debt-free status. A full year of negotiations paid handsomely, saving the company 3 million Euros in interest rates.

Next on the stage, Ladislav Tolmaci, Executive Director Corporate Financing Solutions of Erste Bank Austria contributed the bankers' perspective, explaining the importance of the regulatory environment,  the technical and environmental aspects of the business, solid financials and business plans, equity for  investments, and an overall healthy current balance sheet position. 

After that, moderator Patricia Lopez handed over to World Bank Strategy Officer Lalrinpari Sailo to explain the strategic role of IFC as the private sector arm of the World Bank Group, and subsequently to World Bank Senior Underwriter Wenhe Zhang who elaborated on the role of MIGA, the World Bank Group's Multilateral Investment Guarantee Agency as a provider of political risk insurance and credit enhancement.

Last to take the stage was Katerina Schilling, Head of the IAWD Secretariat. Standing in for AQUASAN President Vesna Muslic, Ms. Schilling introduced the audience to one of altogether eight training programs provided by D-LeaP, the Danube Learning Partnership: “Access to Financing” is designed to support utilities in search of financing for performance improvement.

Applicable for implementation in South-East European countries, and with currently planned roll outs in North Macedonia and Albania, the program is ideally suited as a pre-assessment exercise for LGUs and PUCs that are looking to access loans. Ms. Schilling invites interested parties to get in touch with their national associations for further information.  

The summary of the webinar, presentations and the recording can be foud under the link below.