Leveraging Private Sector Finance for Rural Piped Water Infrastructure in Kenya : The Use of Output-Based Aid
An innovative approach to rural infrastructure finance in Kenya is facilitating access to finance for community-based water providers by blending output-based subsidies and commercial finance. The project is being implemented by K-Rep Bank, a local...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/10/12365581/leveraging-private-sector-finance-rural-piped-water-infrastructure-kenya-use-output-based-aid http://hdl.handle.net/10986/10970 |
| Summary: | An innovative approach to rural
infrastructure finance in Kenya is facilitating access to
finance for community-based water providers by blending
output-based subsidies and commercial finance. The project
is being implemented by K-Rep Bank, a local commercial bank
specialized in microfinance lending, with support from the
Water and Sanitation Program, the global partnership on
output-based aid, and the European Union's water
facility. The project, which began with 21 sub-projects, is
in the process of expanding to a national scale and will
target over 165,000 beneficiaries in 55 communities. The
initial experience indicates that innovation in access to
infrastructure finance is possible in Kenya's rural
water sector and that, inter alia, output-based subsidies
can be useful in addressing affordability constraints for
community-based water providers. |
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