Facing cost recovery constrains in water infrastructure development, apply bankable and sustainable WASH Solutions to overcome affordability barriers limiting the mobilization of private capital.

To reach the SDG 6 goals, we need alternative approaches, financing mechanisms and solutions for safe drinking water supply and municipal liquid waste treatment. Even in Europe water utility infrastructure management and development are facing profound financing gaps. The reconstruction of the ageing water infrastructure is underfinanced and underperforming. Capital costs are not or are just partly included in tariffs, nor covered by public spending. The yearly reconstruction rate of the existing infrastructure is less than 1%-0,1%, which is presuming an unrealistic life expectancy of up to over 1.000 years. The non-refundable grant-based EU public funding for the “new accession countries” requires only the inclusion of the depreciation of the assets, (which equal to bank finance with 50 years payback period and an interest-free loan of 2% of the invested capital/year). Still, even this is not provided due to affordability limitations. Detailed and large-scale investment and asset evaluation results show that EU standard “nearly full scale” water and sanitation utility infrastructure investment/replacement costs are 1.500-7.500.-€ per capita. With the collection and distribution network fluctuating between 1.200-5.700.-€ per capita (75-80% of the total) depending on local conditions, but mainly on the size and type of the municipalities - the smaller/”rural like” the more expensive. These numbers are reflected also in the UNEP City-Level Decoupling Urban resource flows and the governance of infrastructure transition Report. It estimates that the investment required to meet the demand for urban water infrastructure (to refurbish the old and build new) is US$ 22.6 trillion. over the next 25 years for all the cities of the world. City-Level Decoupling: Urban Resource Flows and the Governance of Infrastructure Transitions (unep.org) The report suggests that by 2050 more than 6 billion people (almost 70% of the world population) will live in urban areas. Calculating US$ 22.6 trillion (US$ 22.600 Billion) for 6 Billion people we are coming to the EU standard investment value of 3.767.- USD/capita investment needs. If, in the case of the world’s richest regions full scale and inclusive water infrastructure development are unbankable, then how do we expect it to be feasible worldwide? With this alternative approach and “near-to-consumer” solutions, an investment cost for drinking water provision and liquid waste handling would be 70.- €/per capita for communities without adequate water supply or sewerage network. Drinking water for an initial investment of less than 25.-€/capita, and service of less than 5.-€/person/year, including initial capital costs. Liquid waste management, and purification for an initial investment of less than 45.- €/per capita, and service of less than 10.- €/person/year, including initial capital costs. These technologies provide structural, innovative and sustainable solutions which can also mobilize private capital to address the financial gap in the sector, supporting communities that are most left behind.