INTEGRITY FOR WATER AND SANITATION FINANCE

Addressing corruption and integrity failures in water and sanitation financing is critical to ensuring the efficient use of available funds—and the improvement of service delivery.
The cost of inaction on integrity is unacceptably high.
 

By far the greatest source of funding for water and sanitation is from water users, followed by government, although there are significant regional variations.
Someone always pays. The most poor often pay more.
 

Shrinking civic space and climate change are compounding the integrity challenges in water and sanitation finance.

• Inadequate participation and limited civic infrastructure are skewing sector investment.

• Climate change adds costs. Climate adaptation work does have new financing sources but integrity risks are high, especially in emergency situations.
   

Action for integrity is possible and effective at different levels - within projects, within organisations, as well as in local and national financial management systems.
 

There are integrity risks across the budget cycle.
In response, focusing on procurement risks is important, but insufficient.
Project and infrastructure planning, as well as tariff design need more attention.
Better internal management of service providers, including for non-revenue water programmes and financial management, is also key.
 

Effective integrity action combines three pathways for change. Digital innovation can boost all three of these pathways.

• Ensuring there is 'no reason' and no rationalisation of corrupt behaviour,

• Putting in place processes and oversight to leave 'no room' for corrupt acts, and

• Detecting and sanctioning corruption so there can be 'no reprieve'.
   

Starting today, there are three major opportunities for change:

• Strengthening public financial management;

• Enabling stakeholder engagement in water and sanitation; and

• Promoting a culture of integrity for water and sanitation.
   

There is expertise and support available from oversight institutions, as well as open government and anti-corruption organisations. Making sure the water and sanitation sectors builds links with these organisations is vital.
 

All water and sanitation stakeholders have a role to play - decision-makers, utilities and service providers, regulators, funders, and civil society.
By addressing corruption and integrity challenges head-on, with honesty and collaboration, we can ensure investments in water and sanitation lead to sustainable, equitable outcomes for all.