Strategic Moves - Regional Environmental Center for Central and ...

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C H A P T E R 9
T H E WAY F O R WA R D
S T R AT E G I C M O V E S
ery. Municipalities are also debt averse, as there are strict limitations on the amount
of debt they can incur. Issues of affordability and willingness to pay also arise, as a
result of relatively low income levels in some cases. Weak capacities for project
preparation and a lack of local consultants also delay and hinder environmental infrastructure
investments.
Way forward
• Local governments should focus on providing a clear, effective analysis of their
needs; and on obtaining support, through available grants and soft loans, for
what they (and the state) cannot afford.
• There is a need to improve understanding of the principles behind marketbased
economically efficient environmental investment projects.
• Local authorities should embark on the fundamental reform of water and waste
utilities to make them and their investment projects more attractive to sources
of financing, particularly IFIs and other lenders.
• There should be an ongoing effort to increase capacities for project preparation.
This should be done by informing and training project proponents
(mainly local governments, utilities and regional institutions) on key aspects of
presenting environmental projects as affordable, credible investment projects.
• It would be beneficial to local governments to take advantage of external project
preparation assistance. All key stakeholders (local governments and utilities
as well as non-governmental organisations and citizens) need to be involved
to the appropriate extent in project planning.