Innovative San-Finance

The success of the Swachh Bharat Mission (SBM) has helped build strong narratives around the benefits of improved sanitation and making cities open defecation free.  This has triggered a large investment in toilet construction. Sustaining the ODF status and treatment of faecal sludge and septage is now a priority of cities. Diversifying financing sources and mechanisms is a path to bridge the financing gaps. It is crucial to leverage limited public funds with private financing through innovative financing mechanisms.

CWAS has explored various innovative financing mechanisms across the sanitation value chain. For financing toilets, sanitation credit through various financial institutions is explored. CWAS work emphasises that sanitation credit can play a major role in mobilising communities and unlocking the demand for improved sanitation CWAS has developed business models and financing mechanisms for the sanitation service chain.

Sanitation credit

Lack of funds is one of the major constraints for constructing individual toilets especially for slum households.

Financing faecal sludge management

Faecal Sludge and Septage Management (FSSM) has been recognised as an important means to achieve the Sustainable Development Goal (SDG) 6.2 of “safe sanitation management”.

Innovative financing mechanism

Innovative financing options can leverage limited public funds and bring greater effectiveness that would enable state or local governments to reduce their initial cash flow for investments in water and sanitation