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date: 21 January 2019

Abstract and Keywords

A widely acknowledged underinvestment in infrastructure for the agricultural water management and service delivery sectors represents an increasingly serious constraint on global water and food security. This chapter explores the implications and reasons for this, before going on to suggest where the low-hanging fruit might be found and what kind of investments are needed. These involve bulk service infrastructure, natural infrastructure, irrigation schemes and infrastructure needed for adding value to agricultural outputs. Potential and mostly innovative financing concepts are then proposed such as budget support; leverage financing (ie the public financing of infrastructure needed to attract larger private investments in ventures that use the public infrastructure); blended finance (whereby public investments de-risk revenue risks accruable to provate investments; and a more commercially disciplined approach to multi-sector investments at any scale within a river basin. among which are potential roles for the commercial sector, while noting that the private sector’s perceptions of risks and benefits differs significantly from those of governments and their development partners.

Keywords: water infrastructure, agriculture, irrigation, public sector, private sector, finance

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