In 2006, the Naandi foundation together with Water Health India (WHI) requested Global Partnership on Output-Based Aid to fund the pilot rural Community Safe Water Scheme that combines cost-effective water purification technology with community-driven and performance-based approach. The pubic-private partnership between the village, NGO and WHI was established to finance the treatment facility.
The project districts were chosen because of their high poverty rate and lack of access to quality water services. Villages were selected based on the presence of a water source that could be purified and the willingness and ability of the village to adopt a fee-for-service scheme.
GPOBA subsidizes the cost of setting up the water treatment plants with ultraviolet (UV) purification technology 25 villages through a 800,000 USD grant. A combined financing of local funds, subsidy and a loan was employed. The grant covered the investment, community awareness and running costs. Tariffs are set at an affordable rate and cover the initial investment and O&M costs. A thorough financing discipline was critical for success of the project.
As a part of the project, targeted awareness raising campaigns helped the people to understand health benefits of safe drinking water. The project uses various techniques to target the poorest households. A cost benefit analysis and financial analysis revealed that project was financially sustainable from the operator’s perspective.