But financing delivery of water to those who need requires a complex dance between governments, private companies and the tariff structures, several studies unveiled at the conference showed.

"New investments are possible only if they are guaranteed to bring a return," said a report prepared by a working group headed by former Mexican finance minister Angel Gurria, now secretary-general of the Organisation for Economic Cooperation and Development.

"Ninety percent of water companies around the world are public, but it is necessary to ensure their operational and financial viability," said a UN-backed water committee led by former Japanese prime minister Ryutaro Hashimoto.

Loic Fauchon, who heads the France-based World Water Council, on Thursday urged donors to finance water infrastructure "in order to break the spiral of loans and debt."

"We are not calling for privatization," Fauchon said. "Public authorities should maintain control of water management in any circumstances."

But water services should be able to pay for themselves, he insisted. "Part of this job should be done by governments, part by consumers," Fauchon said.

For example, he said, "In all the countries of sub-Saharan Africa, people are ready to pay for water, if it is available, its price is known and quality is good." The World Water Council favors "acceptable tariffs that allow to maintain the existing services and pay for their expansion" in addition to the necessary subsidies.

The two reports called for a partnership between local and national governments, consumers and public and private water companies to develop water infrastructure. The UN report urges creation of new mechanisms "based on the concept of mutual support, without the goal of turning a profit."

Money is available for developing infrastructure, experts say, but local and national governments need to create a favorable environment for it if they are to attract funding.

That includes, Hashimoto said, financial mechanisms that will guarantee that the necessary infrastructure is built and maintained.

Regional and international financial institutions, he believes, must also encourage development of local financial markets and come up with programs that local authorities could implement. For example, since the 2003 World Water Forum in Kyoto, Japan, the World Bank has adjusted its rules and can now issue loans directly to big cities, bypassing central governments.

Meanwhile, the World Bank said in a study made public Saturday that although subsidies aim to make water available to more people, in Latin American and sub-Saharan Africa they benefit primarily the middle and upper classes.

Jamal Saghir, the bank's director for water and energy, argued that the majority of poor people don't benefit from the subsidies because they don't use water distribution networks.

However, he pointed out, middle-class customers are usually the most hostile to tariff increases.

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