Water Revolving Fund Support Program (PWRF)
Public resources alone cannot meet the investment required for the Philippines to achieve its goals for access to potable water. The Philippines Water Revolving Fund (PWRF), the only water revolving fund outside the United States and Europe, leveraged overseas development assistance with local private funds using a cofinancing arrangement between the Philippine government and private banks. Utilities taking advantage of the fund have been able to expand access to safe water and wastewater treatment facilities for millions of Filipinos.
- Support the fund by providing operating guidelines, business and marketing plans, and transaction support.
- Train private banks on water supply project appraisal and develop utility credit rating system.
- Assist utilities with project development, policy, and utility reforms.
- Mobilized approximately PhP10.5 billion ($234 million) of loans for water supply and sanitation projects, of which 60 percent came from private banks and developers, which will provide up to 6 million people with new or improved access to piped water.
- Effected a financing paradigm shift from purely public to public-private, thereby expanding the source of sustainable financing to include private commercial banks.
- Introduced transformational utility and policy reforms that in the long term will improve the performance of water utilities. The utility reform process has three elements: ring-fencing of assets, strategic business planning, and performance contracting; a bill establishing an independent economic regulatory body, the Water Regulatory Commission; and a local Water Operators Partnership Program anchored on twinning, training, and knowledge management.
Client: U.S. Agency for International Development