Transboundary Water Management as a Regional Public Good: Financing development – an example from the Nile Basin

Cooperative transboundary management of the Nile River Basin is an important public good in itself, as well as a source of regional public goods. Evidence suggests that investment in water resources management and development holds significant opportunities for economic development in the Nile Basin. While the economic returns of large multi-purpose projects may be significant, indirect benefits and public good benefits do not necessarily translate into direct revenue streams that can sustain these investments. This has important implications for the financing of Nile projects, their financial performance and their economic justification.
This report, published by the Stockholm International Water Institute (SIWI) with financial support from the Swedish International Development Cooperation Agency (Sida), focuses on public goods in the context of the Nile Basin. It explores public goods as one justification for soft financing such as grant financing that complements other sources of public and private financing, thus enhancing the financial sustainability of cooperative river-basin management and development projects which provide important public goods.