Unlocking private sector's potential for climate-resilient WASH

Published on: 05/03/2025

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In Bangladesh, WASH services face significant risks such as water scarcity, infrastructure damage, and inadequate sanitation. Recognising these challenges, the Embassy of the Kingdom of the Netherlands (EKN) in Bangladesh, along with IRC, SNV, and Swisscontact, organised a t Conference 2025. The session focused on exploring opportunities, challenges, and actions for private sector involvement in enhancing climate-resilient WASH services. Participants included representatives from the private sector, commercial banks, government agencies, local government institutes, NGOs, development partners, and academia.

The session began with a presentation on key aspects of climate-resilient WASH and case studies showcasing private sector contributions in drinking water and sanitation. This was followed by an open discussion structured around three key questions, summarized below:

1. Challenges in Public-Private collaboration for WASH services

• Absence of dedicated regulations for private sector involvement; existing regulatory frameworks are fragmented and unclear on tariff and competition management.
• Lack of comprehensive, openly accessible water and sanitation data, hindering private sector engagement in WASH services.
• Unattractive bidding processes in public-private partnerships due to insufficient information on profitability.
• Regulatory barriers, such as those set by the Bangladesh Standards and Testing Institute (BSTI), favour large entities over small drinking water service providers.
• Difficulty in accessing finance from commercial banks for small and micro-scale water and sanitation enterprises as they are not considered as a formal sector.

2. Lessons from successful Public-Private Partnerships

• Kushtia Municipality Model: A partnership for faecal sludge management that has become financially viable and profitable. Private partners are working with the municipality in faecal sludge emptying, transportation and treatment.
• Social Enterprise Model: Private water treatment plant operators in coastal areas are partnering with schools to provide free water to students while selling to nearby households, ensuring financial sustainability.
• Financial Inclusion Initiatives: Support water and sanitation entrepreneurs through technical assistance and risk-mitigation incentives, enabling services for marginalized communities.

3. Strengthening governance for private sector engagement in WASH

• Private sector involvement in WASH services is growing but needs additional support to integrate climate resilience into service delivery.
• While government policies are opening avenues for private sector engagement, concerns remain about the commercialization of essential services like drinking water.
• Greater policy and institutional collaboration can help private actors overcome operational barriers and scale sustainable, climate-resilient solutions.

Final thoughts

The private sector in Bangladesh has immense potential to enhance climate-resilient WASH services. Collaboration between micro and macro enterprises, manufacturers, and service providers is key to unlocking this potential. As national policies become more inclusive, stronger partnerships can help address regulatory and financial barriers, driving sustainable and resilient WASH solutions forward.