Financing water and sanitation services: two types of funds for facing investment challenges in Brazil

Abstract

In the countries of the Global South, investments in the water and sanitation sector have historically not met the overall needs. The poor are generally the most affected. The creation of funds to support universalization of water supply and sewerage services may represent an important instrument as a sustainable investment strategy. This study displays the features and characteristics of two distinct fund models at the state level in Brazil. It indicates that despite challenges these funds offer opportunities for meeting the main objective of the water and sanitation policy in Brazil, the universalization of service provision. It suggests also that the Brazilian experience might be adapted to other contexts.