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This paper sheds light on the question to what extent public development banks can, and do, contribute to achieving the United Nations’ Sustainable Development Goal (SDG) 6 on water and sanitation under the current political economic conditions, drawing on the case of the German KfW Development Bank and its activities in Latin America. It concludes that bankable, large water supply and sanitation services (WSS) infrastructure projects based on cost-recovery models can hardly deliver the WSS systems needed in Latin America in a sustainable manner. Achieving SDG 6 requires long-term subsidies for public water utilities and addressing the political conditions of WSS governance on the ground.

Between development and banking : the KfW Development Bank in Latin America’s water sector