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This report draws on three detailed case studies in Eastern Europe, the Caucases and Central Asia (EECCA), and on the experience of OECD countries to provide guidance on how transfers from central budgets to local authorities could be designed to finance environmental infrastructures in transition economies. Ideally, the costs of water supply and sanitation should be covered by user charges. However, the high investment costs and

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The countries of Eastern Europe, Caucasus and Central Asia (EECCA) are strengthening how they monitor environmental expenditure in order to ensure that funds are used as cost-effectively as possible.

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