-
Minding the gap: viability gap funding for private rural water operators in Cambodia
01.01.2020
The adoption of the Sustainable Development Goals has led to an increased interest in blended finance, recognition of pluralistic service delivery models, and ambition for safer, more convenient, and more equitable services. This paper describes the experience of adapting a public subsidy tactic, viability gap funding (VGF), to private water operators in Cambodia, critical partners of the Royal Government of Cambodia’s efforts to reach 95 per cent of its population with piped water by 2025. VGF allows public agencies to incentivize private investment in infrastructure projects that are economically and socially justifiable but financially unviable in the short term. Emerging evidence from Cambodia suggests that by applying the tactic to the rural water sector, small water companies will invest and expand into previously unserved areas. The Investing in Infrastructure programme, a five-year, A$35 m investment in basic infrastructure services by the Australian Government’s Department of Foreign Affairs and Trade implemented by Palladium, has incentivized 61 private water companies to expand to unserved areas, leveraging over US$24.6 m in private capital, and offering connection possibilities to nearly 180,000 rural households. Although the political economy of Cambodia’s water sector has contributed to the success of the VGF, many countries share similar characteristics to Cambodia: low coverage levels, a weak domestic resource allocation, some existence of private operators, a post-conflict history, or an ambition for high levels of access to piped water services. Public agencies and donors operating in countries with such characteristics may benefit from considering VGF in their water financing options. -
Filling the knowledge gap: Monitoring post-construction water and sanitation sustainability
01.07.2010
While progress is being made towards MDG 7, emerging research is documenting disturbing failure rates of water and sanitation systems around the world. One step in the right direction to documenting and understanding the challenges of sustainability – defined simply as continuing to function and be used over time – would be post-construction monitoring of functionality and use of systems. Although frequently recommended for the success of sustainable development efforts, post-construction monitoring activities have not been prioritized by international development organizations. This paper describes the post-construction monitoring programme of one international non-governmental organization, Water For People; how it is done, what has been learned, and what programmatic and strategic changes it has produced. -
From our water correspondent
01.10.2011
-
From our water correspondent
01.07.2012
-
From our water correspondent
01.10.2012
NGOs can improve their feedback to donors by incorporating the voices of partners and consumers, for the benefit of all, writes Kate Fogelberg. -
From our water correspondent
01.01.2013
-
Making markets work for the poo-er: Water For People’s pathway to market systems development
01.12.2019
Like most sustainable, systemic changes, changing the culture and practices of an international NGO is not a simple input–output model. Organizations need to be both motivated and able to change their practices. A blend of mutually reinforcing incentives and capacities – from leadership attitudes, information, staff skill sets, to resource allocations – all contribute to making markets work better for the poo-ers. This paper reflects on the why, the how, and the so what of that journey.