Water, Sanitation and Hygiene Finance (WASH-FIN)

Closing financing gaps to achieve universal access to water and sanitation services through sustainable and creditworthy business models, increased public funding and expanded market finance for infrastructure investment.

Globally, 663 million people do not have access to safe drinking water and 2.4 billion people lack access to improved sanitation. Governments have set ambitious targets for universal access to water and sanitation by the year 2030, but an unprecedented mobilization of funding will be required to meet this goal. A 2016 analysis by the World Bank estimates that $114 billion per year of capital investment will be required to meet universal access to safely managed water and sanitation services by 2030, or about three times the current investment levels. USAID’s WASH-FIN project will work in collaboration with national governments, development partners, private capital market institutions and local stakeholders in at least eight countries to close financing gaps and improve governance structures that enable targeted countries to access reliable sources of capital for sustainable, climate resilient water and sanitation infrastructure.

USAID'S WASH-FIN APPROACH TO CLOSING FINANCING GAPS

USAID's WASH-FIN approach to closing financing gaps is based on the premise that citizens should be treated as valued customers and adequately served by water, sanitation and hygiene (WASH) service providers operating on sustainable business models that strengthen creditworthiness, within clear regulatory and governance structures. Only then can increased public investment and market finance be effectively leveraged to expand or improve service delivery. To move the sector toward this end, USAID's WASH-FIN activities will focus on the following strategic lines of action:

WASH-FIN Strategic Graphic

 

 

Closing financial gaps for global water supply and sanitation services in Africa. Photo Credit: Renate Wefers

Overview

 

CHALLENGE

It is estimated that $114 billion per year – or three times current investment rates – will be required to achieve universal access to water and sanitation by 2030

Bridging the massive financing gap will require increases in public investment and expanded utilization of private finance.

USAID'S WASH-FIN APPROACH

USAID’s WASH-FIN project provides technical assistance and services to help municipalities and utilities track and mobilize greater financial resources for improved service delivery.

COUNTRIES

Kenya, South Africa, Senegal, Nepal, Cambodia
Acronym: 
WASH-FIN
Activity Status: 
Active
Start Year: 
2016
End Year: 
2021
Award or Grant Number: 
AID-OAA-I-14-00059
Prime Implementing Partner: 
Funding Level: 
$40,000,000
Population Focus: 
Urban

Improving access to water supply and sanitation services for municipalities. Photo Credit: DFID/Russell Watkins

Partners

Addressing Nepal's Water Crisis. Photo Credit: The Diplomat

Resources

Topic

Resource Type

Geography

Treatment is integral to the fecal sludge management chain in Senegal. Photo Credit: ONAS Senegal

Blogs

Countries

KENYA ACTIVITY

  • Duration: 3 years (started May 2017)
  • Budget: $5 million
  • Goal: To expand financing for viable utility companies aimed at increasing investment in expanded access to or improved service quality of safe and reliable water and adequate sanitation.

SOUTH AFRICA ACTIVITY

  • Duration: 1.5 years (started July 2017)
  • Budget: $800 thousand budget
  • Goal: To expand financing for viable municipalities aimed at increasing investment in expanded access to or improved service quality of safe and reliable water and adequate sanitation. 

SENEGAL ACTIVITY

  • Duration: 2 years (started August 2017)
  • Budget: $2 million
  • Goal: Expand access to WASH financing by supporting the design of a “Blue Fund” financing facility and, providing transaction facilitation for private service providers, aimed at increasing investment in safe and reliable WASH services.

NEPAL ACTIVITY

  • Duration: 2.5 years (started September 2017)

  • Budget: $2.6 million

  • Goal: To develop and institutionalize a municipal WASH services model, based on viable commercial approaches to customer-centered service delivery, using cost-reflective tariffs and clear business plans which facilitate access to blended repayable finance from the Town Development Fund.

CAMBODIA ACTIVITY

  • Duration: 3 years (started September 2017)

  • Budget: $5 million

  • Goal: To expand the market for commercial lending into the WASH sector, complete loan agreements for private water service providers with possible use of credit enhancements, aimed at sustainable WASH infrastructure and service delivery.

Reliable clean water supply is the basis for good hygiene practice in Kenya. Photo Credit: Adobe Stock

Contact Us

The five year, $40 million USAID WASH-FIN project, is funded by the United States Agency for International Development (USAID) and began in October 2016. USAID's WASH-FIN implementation is led by Tetra Tech with support from Open Capital Advisors, Segura Consulting and Global Credit Ratings.

Contact details: Jeffrey Goldberg jegoldberg@usaid.gov or Sam Huston sam.huston@washfin.org.