Water for Women is the Australian Government’s flagship Water, Sanitation, and Hygiene (WASH) program and is being delivered as part of Australia's aid program. It is supporting improved health, gender equality and wellbeing in Asian and Pacific communities through socially inclusive and sustainable WASH projects. www.waterforwomenfund.org
The Need for WASH Infrastructure Private Sector Support in India
As noted in our first blog, RTI India seeks to increase private sector participation in WASH. Limited private-sector financing with a lack of adequate public funding from the government leaves WASH programs susceptible to failure and creates unrealistic expectations from project design. In our first blog we provide potential solutions to enhance private sector investment in WASH programs and close the financial gap between program design, budget, and government and private sector partners.
In this second blog of a three-part series, we will discuss financial options for WASH infrastructure in India. This blog aims to explain India’s complex financial opportunities and lay out the best options for a financial increase in WASH.
Loss Guarantee Options for Increased WASH Investment
What is a Loss Guarantee?
A Loss Guarantee is a loss sharing facility in which a guarantor of funds, in the event of project loss, reimburses a pre-determined portion of the repayment due to the financier. Such guarantees are additional because they provide significant coverage to the financiers’ risk and enhances a project’s ability to secure/raise finance. A simplistic version of the conceptual framework is depicted through the diagram below: