Financing Models for Small Scale Water Service Providers

This PDA helped develop and test financing models that would allow Small Scale Water Service Providers (SSWSPs) to access funds and improve their operations.

Report Card

Completed in November 2009, this PDA

  • Identified and developed financing modalities that fit the needs and capacities of SSWP-borrowers
  • Reinforced the important role of SSWPs as gap-fillers to provide water to people without access to potable water, especially in urban poor communities, informal settlements, and peri-urban and rural areas
  • Underscored government's formal recognition of SSWPs as partners in meeting the MDG water supply target
  • Introduced the potential of SSWPs as a new market for government and private funding institutions and non-bank finance providers

Description

SSWSPs bring water to rural and urban population unserved by water utilities, playing a vital role in meeting water and sanitation needs. Often, however, SSWSPs' operations and expansion have been limited; their participation in water and sanitation provision curtailed by the lack of institutional or legal framework and access to financing.

In the Philippines, SSWSPs are increasingly being recognized by national water agencies and financing institutions. Such recognition may open up financing windows for SSWSPs with rural and commercial banks. This PDA will provided financial models more responsive to SSWSPs needs.

Expected Outcome

  • Report on proposed financing models for small scale water service providers
  • Increased access of SSWSPs to more financing with capacity development support
  • Improved SSWSPs operations, i.e., increase in coverage, efficiency and effectiveness.