Rationale
In order to prioritise investments and to be able to motivate the financing new developments, it is necessary to determine the value of proposed developments and their related costs and benefits in the context of the broad economy where the investments are planned. To do so it is necessary to understand the economy of water in relation to the primary water-dependent sectors in society. This should not be left in the hands of institutions whose main function it is to lend finance but should be independently undertaken by the authorities which are mandated to provide public services and which are responsible for servicing the debt incurred in the public interest. Countries and specifically water related government departments generally do not have the expertise to undertake such analysis which is a significant gap and one which the AIP intends to assist in addressing. Undertaking world class analysis will enhance the confidence of prospective financiers. In order to fully understand the economics of infrastructure investments in the water sector, analysis will need to be fully integrated in that it will need to include analysis of the sectors for which the water is being developed, be it agriculture, energy, urban commercial and industrial, or multi-purpose.
Activities
- Promoting and widely advocating for the use of the tools and methods for valuing water
- Preparation of guidelines for undertaking Independent Integrated Economic Analysis (IIEA) at project, country, region or river basin level
- Establishing a high level peer review board to ensure world class analysis.
- Supporting favourably inclined Member States/RLBOs to undertake IIEA studies.
- Facilitating the development and operationalisation of the relevant institutional structures for Valuing Water at all levels.
- the concept of valuing water is fully integrated into decision support systems for domestic Economic Planning; Financial Resources Allocation; and Investment at all levels
- Improved infrastructure investment planning and implementation.
- Greater multi-sector integration particularly in support of the nexus concept.
- Improved national level oversight of investment decision making and understanding of the short- and long-term impacts of development and different financing options.
- Improved bankability of prospective infrastructure investments
Contribution to Programme Outcomes
- the concept of valuing water is fully integrated into decision support systems for domestic Economic Planning; Financial Resources Allocation; and Investment at all levels
- Improved infrastructure investment planning and implementation.
- Greater multi-sector integration particularly in support of the nexus concept.
- Improved national level oversight of investment decision making and understanding of the short- and long-term impacts of development and different financing options.
- Improved bankability of prospective infrastructure investments