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 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:
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 project provides technical assistance and services to help municipalities and utilities track and mobilize greater financial resources for improved service delivery.
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.
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.
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.