Initiative: Output-based Aid Programme
Institution: Water Sector Trust Fund
Problem: Households in low-income underserved communities could not afford to buy materials required for water and sewerage connections. Untreated water from unprotected wells, rivers, and dams would sit and cause the spread of waterborne diseases.
Solution: Output-Based Aid Programme partners with commercial banks to provide subsidies for financing projects carried out by water service providers that implemented individual water and sewer connections, water kiosks, public water supply points, and public toilets in low-income underserved areas. The commercial banks provide pre-financing with a 60 per cent subsidy on the commercial loan to enabled cheaper repayments to encourage water service providers to service these underserved communities.
Impact: 120,500 residents in low-income areas have gained access to clean water and sanitation services through water and sewerage connections, as well as public sanitation services (water kiosks and public toilets) constructed near or within their areas of residence. The initiative has improved hygiene and prevention of waterborne disease, saved time for women and girls to access water straight from a tap within their households or from a nearby public water kiosk, and improved livelihoods and increased disposable income with savings buying water from private vendors.