This guide is intended for microfinance Institutions, water service providers and other development institutions. It was produced with assistance from the USAID Philippine Water Revolving Fund (PWRF) Support Program, a collaborative undertaking of GOP partners, USAID, Japan International Cooperation Agency (JICA), LGU Guarantee Corporation (LGUGC), and private financing institutions (PFIs) through the Bankers Association of the Philippines. The PWRF Support Program established a co-financing facility that combines ODA/JICA resources with PFI funds for creditworthy water service providers, using a financial structure that allows affordable loan terms without sacrificing the viability of PFIs. PFIs have access to credit risk guarantees provided by LGUGC and USAID’s Development Credit Authority.
The guide is based in part on consultations with key stakeholders, reviews of the experience of other countries in the implementation of similar schemes, and results of the pilot testing of selected schemes in three Philippine municipalities. Its overall objective is to provide information and a systematic development approach to microfinance institutions and water utilities in the development of a microfinance program for WSS services, and ultimately to unlock the potential of microfinance to expand poor communities’ access to safe water supply and basic sanitation services.
The USAID’s Water, Sanitation and Hygiene Finance Project (WASH-FIN) recently produced a related Financing Facility Landscape Assessment that highlights the specific example of the USAID-supported Philippine Water Revolving Fund (PWRF), WASH-FIN also produced a webinar based on the report: How WASH Financing Facilities Can Close the Finance Gap for Universal Access.