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8.9 Financing (Topic i)

Paying for the collection, treatment and disposal of wastewater is generally expensive in the Region. None of the utilities in the Region even recover their costs in providing a wastewater disposal service. Hence this is a major problem in providing a service that protects public health and is friendly to the environment.

Most utilities in the Region, charge for wastewater services on the basis of the amount of freshwater supplied to each connection. A few utilities do not specifically charge for wastewater services. In all Regional utilities the wastewater services are subsidised by either or their water and electricity charges. Nowhere in the Region does wastewater charges cover the costs of providing the service.

In Fiji and Kosrae (FSM), and maybe other SIDS, respective governments subsidise wastewater disposal. The Nauru Phosphate Company pays for wastewater disposal costs in Nauru.

At least six Pacific SIDS do not have any sanitation services provided, thus there are no charges. Individual households and businesses are responsible for providing and maintaining their own disposal systems in these countries.

In most countries where wastewater systems exist, governments initially were responsible for providing the infrastructure and then turned them over to boards, authorities or companies to run. Generally governments still maintain some control or interest in the utilities especially regarding charging.

Finance for major projects and master plans are still normally channelled through governments to either guarantee loans and/or negotiate bilateral funding. The Asian Development Bank has prepared many Technical Assistance wastewater studies in the Region and has loaned money to implement projects.

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