Investment and Financing
Unavailable or inadequate financial resources and capacity is often cited for the lack of water supply, sanitation, solid waste and wastewater management facilities. The public-private partnership (PPP) approach has been promoted at a number of ICM sites to allow the public sector to leverage more financial resources and technical and managerial expertise by using the private sector as an intermediary. PEMSEA promotes various mechanisms to facilitate revenue generation.
PEMSEA experiences in the Philippines (Batangas Bay and Bataan) demonstrated that the corporate sector is a willing and able partner in the development and implementation of ICM programs. However, this experience does not reflect the prevailing situation in most countries, where difficulties persist in accessing partners and support to develop and implement sustainable marine and coastal resource management programs at the local government level. Related constraints include the following:
- the mistrust between the two sectors;
- misperception of 'partnership' as primarily/solely a financial arrangement between the two sectors;
- policy, legal and technical barriers to mobilizing necessary financial resources for investment projects at the national and local government levels;
- limitations in local government access to national financing programs and international investors and private companies;
- inadequate/inappropriate financing;
- limited revenue generating opportunities;
- limited capacity to develop and promote investment opportunities to the private sector.
Target Scenario / Benefits
Global: ICM programs provide a means for the corporate and private sectors to effectively work with local governments and other stakeholders to achieve a common objective of sustainable social, environmental and economic development. Through the promotion and replication of the approaches used in the Philippines, the concept of Corporate Social Responsibility (CSR) is transformed into an on-the-ground practice for the GEF IW program. Likewise, based on the experience and good practices derived from the GEF/UNDP MSP on Public-Private Partnerships and the WB/GEF Partnership Investment Fund, policy reforms, innovative financing programs and sustainable financing mechanisms are promoted and replicated as essential tools for scaling up management interventions in IW programs regionally and globally.
Domestic: Enabling policies for Public-Private Partnerships leverage collaborative activities and participation by the corporate sector in ICM program development and implementation among local governments in different countries of the region, as appropriate. Investments in the environment sector increase as a consequence of policy and program reforms at the national and local government levels. A number of pollution-reduction facilities are put in place, and investment plans for a number of pipeline projects are developed.