WASH
Water Financing
Market Intelligence Reporting on: Water Service Delivery Models, Costs of Service, Tariff Impacts, Subsidy structures, and Financing Strategies in Lagos
Resilient Water Accelerator (RWA)

Project Overview

The Resilient Water Accelerator (RWA) works to advance solutions that can strengthen urban water service delivery and mobilise investment in resilient water systems. In collaboration with RWA, Athena Infonomics undertook a market intelligence study examining urban potable water service delivery models, drawing on research and experience across South Asia, Sub-Saharan Africa, and Latin America.

 

The work combined a global assessment of water service delivery models with a focused application in Lagos. It examined how factors including asset ownership and management, cost of service, tariffs, subsidies, financing strategies, and social equity shape different delivery models and their financial viability. The study also explored opportunities for a longer-term partnership between RWA and Athena and shared insights with wider stakeholders through an investor roundtable and webinars.

 

Project Objectives

 

The project aimed to:

  • Develop standardised urban water service delivery models based on evidence and experience across different geographic contexts;
  • Examine how asset ownership, management arrangements, tariffs, subsidies, investment strategies, and social equity influence water service delivery;
  • Identify contextual risks that can affect the financial viability of different service delivery models;
  • Apply the global framework to Lagos to assess its specific urban water service delivery challenges;
  • Test different service delivery and investment scenarios for Lagos, including their implications for social equity and economic risk;
  • Explore potential approaches for a longer-term partnership between RWA and Athena to scale impact-oriented water service interventions;
  • Share findings with investors and other stakeholders to support knowledge exchange and collaboration.

Athena’s Role

 

Athena partnered with RWA to develop the research, analytical frameworks, and market intelligence underpinning the assignment. This included:

  • Conducting desk-based research on urban water service delivery models and developing analytical frameworks for the Global Report and Lagos Case Study;
  • Analysing asset ownership, tariffs, subsidies, investment strategies, and other factors shaping different urban water service models;
  • Developing standardised water delivery models and financial frameworks, including Excel-based tools for scenario testing and decision-making;
  • Consulting global experts and stakeholders in Lagos, including utilities and government representatives, to inform the analysis;
  • Developing a Global Report with insights on urban water service delivery models and a Lagos-specific case study with recommendations for improving service delivery and mitigating risks;
  • Assessing potential models, trade-offs, and benefits for a longer-term strategic partnership with RWA;
  • Supporting dissemination through an investor roundtable and webinars to share findings and facilitate stakeholder dialogue.

Impact

The project provided RWA with a structured evidence base for understanding how different urban water service delivery models operate across varying contexts and the financial, institutional, and social factors that influence their viability. Applying this framework to Lagos enabled a more focused assessment of service delivery options, investment strategies, risks, and social equity considerations.

 

The Global Report provided insights and recommendations to inform RWA and stakeholder decision-making on urban water service delivery and investment. The investor roundtable and webinars further supported the exchange of these findings with stakeholders and created opportunities for wider discussion on approaches to improving urban potable water services.

Explore the report for further insights from the study!

Image used for representational purposes only.