How it works
We link non-repayable grant funding to drinking water service results through three key performance metrics and a standardized, transparent and scalable payment model. Performance metrics are:
Uptime – the proportion of time that infrastructure is working
Water volume – the amount of water used
Local revenue – what users pay for the service.
These metrics assess the scale, reliability, use and perceived user value of a water service. We directly quantify delivered water benefits to users that are paying a share of service costs.
Learn more about how we developed and tested our model
Why it matters
Results-based funding accelerates water service development and ensures that water keeps flowing. Water users pay for these services, but often not enough to cover the full service cost in rural and remote contexts. Results-based contracts help to address this funding gap. Over time, these rural water services can either transition out of requiring a subsidy or begin to access public funding locally. Interim catalytic funding is critical to service development in early stages when user payments do not fully cover operating costs.
