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.

WASH-FIN CONTEXT

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 investments 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 works in collaboration with national governments, development partners, private capital market institutions, service providers, and local government, sector, and community stakeholders in at least eight countries to close financing gaps and improve governance structures that enable targeted countries to become self-reliant by accessing reliable sources of capital for sustainable, climate resilient water and sanitation infrastructure.

WASH-FIN APPROACH TO CLOSING FINANCING GAPS

WASH-FIN’s approach to closing financing gaps is based on the premise that all citizens should be treated as valued customers and adequately served by water, sanitation and hygiene (WASH) service providers. To do this, WASH-FIN advocates for commercially viable business models that strengthen creditworthiness, within clear regulatory and governance structures. Building on that, WASH-FIN aims to increase and leverage public investment with repayable, market, and other sources of finance to expand or improve service delivery. Finally, WASH-FIN disseminates these efforts to demonstrate what is possible and provide models to further build on and replicate. The following strategic lines of action encompass this approach to move the sector toward the goal of closing the financing gaps to reach universal access:

WASH-FIN Focus Area Graphic

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

Overview

CHALLENGE

The World Bank estimates 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.

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

Partners

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

Resources

A water service provider marketer gets customer feedback from a residential caretaker. Water Service Provider COVID-19 Financial Stress Testing and Mitigation
Technical Brief

Water, sanitation, and hygiene (WASH) is the first line of defense against the spread of COVID-19, and recognizing this, the National Emergency Response Committee in Kenya directed water service providers (WSPs) to ensure that all Kenyans had access…
Waiting in line for water should be a thing of the past, not a portent of the future. Photo credit: Shutterstock World Water Day 2020: Five Ways USAID is Helping Thirsty Cities
Blog

Our world is becoming more urban, and USAID is helping partner countries adapt to this rapid change. By 2030, 68 percent of the world’s population will be living in cities, with the majority of that growth happening in the developing world. The…
Increased revenues from CRM reform will be invested in augmenting and diversifying Cape Town’s water supplies to reduce the impact of future droughts  Photo Credit: City of Cape Town Customer Service Reform for Water and Sanitation Service Providers: The Cape Town Experience
Case Studies

In the last decade, the City of Cape Town faced an unprecedented drought, culminating in 2018, when reservoirs fell to threateningly low levels that sparked predictions of “Day Zero”—the day when Cape Town would have to begin rationing water. In…
Locals collect water at the Saku water kiosk in Marsabit County, Kenya. Photo credit: Johnson Nganga / Kenya RAPID CCU Marsabit USAID at World Water Week: How Strong Governance Attracts Investment
Blog

How can universal water and sanitation access be achieved by 2030? To start, these sectors must attract non-traditional financing, as available public financing represents only one-third of the $114 billion in capital investments required…
Cambodia Investor Landscape Assessment Report
Report

The United States Agency for International Development (USAID) Water, Sanitation, and Hygiene Finance (WASH-FIN) project seeks to close financing gaps to achieve universal access to water and sanitation services through sustainable and…

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

Blog

Check out blogs written by or about the WASH-FIN program.

Waiting in line for water should be a thing of the past, not a portent of the future. Photo credit: Shutterstock World Water Day 2020: Five Ways USAID is Helping Thirsty Cities
Blog

Our world is becoming more urban, and USAID is helping partner countries adapt to this rapid change. By 2030, 68 percent of the world’s population will be living in cities, with the majority of that growth happening in the developing world. The…
Locals collect water at the Saku water kiosk in Marsabit County, Kenya. Photo credit: Johnson Nganga / Kenya RAPID CCU Marsabit USAID at World Water Week: How Strong Governance Attracts Investment
Blog

How can universal water and sanitation access be achieved by 2030? To start, these sectors must attract non-traditional financing, as available public financing represents only one-third of the $114 billion in capital investments required…
The Omni Processor converts fecal sludge into clean electricity, nutrient-rich ash that can be used in agriculture, and pathogen-free, clean water. Photo credit: USAID/Senegal Facilitating Relationships Between Private Sanitation Service Providers and Commercial Banks in Senegal
Blog

Senegal has made great strides in providing access to sanitation for its population, but more than 7 million people still lack access to adequate sanitation. To address this shortcoming, the Programme National de Développement Durable de l’…
Photo credit: WASH-FIN How the City of Cape Town is Raising Own-Source Revenue and Improving Self-Reliance via Improved Customer Relationship Management
Blog

Why would a major city choose to reform customer relationship management (CRM) in the face of a water crisis? What good could that possibly do when reservoirs are drying up and citizens are being told to dramatically reduce water use? Many of us…
Webinar Explores How Financing Facilities Can Close the Finance Gap for Universal Access Webinar Explores How Financing Facilities Can Close the Finance Gap for Universal Access
Webinar

Water, sanitation, and hygiene (WASH) programs are essential to human life, yet chronically underfunded. An estimated $114 billion annual financing gap—three times current investment levels—is preventing countries from achieving universal access to…

Photo Credit: WASH-FIN

Countries

WASH-FIN Where We Work Map

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.
  • Specific Objectives: Financial Flows Tracking; Creditworthiness and Investment Planning; and Transaction Facilitation

SOUTH AFRICA ACTIVITY

  • Duration: 1.5 years (started July 2017)
  • Budget: $1.8 million
  • 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. 
  • Specific Objectives: Transaction Facilitation, and Knowledge Sharing through workshops

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 sanitation service providers, aimed at increasing investment in safe and reliable services.
  • Specific Objectives: Design of Sustainable WASH Funding Mechanism; and Transaction Advisory Services to Private WASH Providers

NEPAL ACTIVITY

  • Duration: 2.5 years (started September 2017)
  • Budget: $2.6 million
  • Goal: To develop and institutionalize sub-national WASH services models, based on commercially viable approaches to customer-centered service delivery, using cost-reflective tariffs and clear business plans which facilitate access to blended repayable finance from the Government of Nepal’s Town Development Fund.
  • Specific Objectives: Institutional Models for Water Supply and Faecal Sludge Management; Creditworthiness Enhancement; and Knowledge Sharing

CAMBODIA ACTIVITY

  • Duration: 3 years (started September 2017)
  • Budget: $3 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.
  • Specific Objectives: Creditworthiness and Market Assessments; Access to Local Commercial Market Finance; and Knowledge Sharing

PHILIPPINES ACTIVITY

  • Duration: 1 year (started October 2018)
  • Budget: $1 million
  • Goal: To operationalize the Government of the Philippines’ Unified Financing Framework (UFF) with an institutional structure that can rationalize financial flows into the WASH sector aimed at increased investment in improved quality of safe and reliable water and adequate sanitation services, and tracking of expenditure.
  • Specific Objectives: UFF Establishment and TrackFin

MOZAMBIQUE ACTIVITY

  • Duration: 2.5 years (started November 2018)
  • Budget: $4.7 million
  • Goal: Expand financing for viable water and sanitation service providers to enable them to invest in improving service quality and/or increasing client access to safe water and adequate sanitation.
  • Specific Objectives: Increase Understanding of WASH Financing Options,  Transaction Support Services to Private WASH Providers, Support for Alternative Financing Opportunities

Contact Us

Contact details: Ella Lazarte elazarte@usaid.gov or Sam Huston sam.huston@washfin.org.

 

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