The Enabling Environment for Investment in Water Security.pdf

Presented at the 11th roundtable on financing water in Brussels, Belgium on 30-31 May, 2024.

Intervention by Guy Halpern, Policy Analyst, Environment Directorate, OECD

1. THE ENABLING ENVIRONMENT
FOR INVESTMENT IN WATER
SECURITY
11
th
Roundtable on Financing Water, 30 May
Guy Halpern

2. 1.What is the enabling environment assessment?
2.Why are we using the enabling environment
assessment?
3.Piloting it in the Eastern Partnership countries
4.What are some high-level preliminary findings?
Presentation outline

3. 3
Enabling Environment for Water Financing:
Tool structure and methodology
Enabling
environment for
investment in
water security
Investment
Policy
Framework
Water Policy
Framework
Water projects
Other
economic
sectors
How attractive is the
country for
investments?
How attractive are
water policy
frameworks for
investments?
Are projects in the water
sector sustainable and
bankable?
Do economic sectors
contribute to water
security?

4. 4
Scorecard added value – pilot test results
Optimise the use of
existing funds
Basis for benchmarking
Tracking country
progress over time
Specific country policy
and regulatory
recommendations
Reduce transaction costs
for investors
0
1
2
3
4
5
Macro-Economic
Indicators
Strength of
Domestic Finance
Sector
Availability of
Domestic Finance
Public Governance
Mechanisms
Corporate
Governance
Mechanisms
Regulatory Permits
and Approvals
Accountability
Mechanisms
Non-commercial
Risk
Decentralization
Access to
Infrastructures
European OECD member countries
American OECD member countries
Asian and Pacific OECD member countries

5. 5
Enabling Environment for Water Financing:
Piloting the tool in the EaPcountries
Pilot phase
•Armenia complete
•Azerbaijan, Georgia,
Moldova and
Ukraine are being
finalised
Regional
Discussion
•May 30-31 OECD
High-level
Roundtable on
Water Financing
Preliminary findings
•Progress on water strategies and acts aligned
with EU acquis
•Challenges with differences in rural and urban
service provision, including centralisation and
standards
•Need for long-term investment planning at the
sectoral level
•Tariffs and water taxes are too low to cover
operational costs

6. Thank you !
Guy Halpern
[email protected]