Preface  3

Foreword  4

Acknowledgements  5

Executive summary  9

1. Context: Challenges to effective investment in water  11

1.1. Definitions and scope of the report  12

1.2. Do water-related investments and financing models deliver lasting value?  12

1.3. Can financing models and approaches help strengthen the viability and effectiveness of water investments?  15

References  18

Notes  20

2. Leveraging bond finance for water investments  21

2.1. What is bond financing for water?  22

2.2. Recent trends in bond finance for water  26

2.3. Opportunities to scale up bond finance for impactful water investments  38

References  47

Notes  51

3. Mobilising Islamic finance for water investments  53

3.1. Latest trends in Islamic finance for water  55

3.2. Promising financing instruments to scale up Islamic finance for water  64

3.3. Ways forward to leverage Islamic Finance for effective water investments  78

References  87

Notes  94

4. Results-based finance (RBF) in the water sector: Use, rationale and conditions for success  98

4.1. Introduction  99

4.2. How is results-based finance applied in the water sector  100

4.3. Results-based finance as a lever of change  106

4.4. Making results-based finance work: conditions for success  111

4.5. Opportunities to scale up RBF for water investments  114

References  115

Notes  116

5. Revisiting public-private partnerships (PPPs) for water and sanitation: Balancing risks, focusing on results  117

5.1. Introduction  118

5.2. Public-Private Partnerships structured for durable services  121

5.3. Enabling conditions for balanced PPPs  128

5.4. Opportunities to scale up PPPs for water-related investments  132

References  133

Notes  134

6. Summary of key findings and policy recommendations  135

6.1. Leveraging bond finance for water investments  136

6.2. Mobilising Islamic Finance for water investments  139

6.3. Deploying results-based finance in the water sector: use, rationale and conditions for success  141

6.4. Revisiting public-private partnerships for water and sanitation: balancing risks, focusing on results  143

References  145

Notes  145

Annex A. Scopes of the datasets and methodology  146

References  147