This report identifies opportunities andchallenges for local financing of water utilities in Peruand suggests recommendations for removing barriers andcreating incentives for scaling-up local financing to localwater utilities. It was developed with an understanding thatmeeting the Millennium Development Goals (MDGs) in water andsanitation in Peru will require scaling up local financingfor the sector and that efficiency and effectiveness can beenhanced by greater involvement of local institutionalinvestors and other parties. This joint study exposes manyof the barriers to local private financing facing the urbanwater supply and sewerage (WS&S) sector in Peru. Inshort, the majority of local water utilities cannot meetcredit rating and governance standards required to accessprivate financing. Consequently, loans from financialmarkets are rare. These findings are probably not specificto Peru. Accordingly, there is great value for centralgovernments to undertake similarly detailed studies toidentify the obstacles preventing access to local financingunique to their country's WS&S sector.
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