Output-Based Aid in Cambodia : Private Operators and Local Communities Help Deliver Water to the Poor

Abstract

After decades of war and social disruption in Cambodia, publicly run water, and sanitation services are scarce, and limited mainly to urban areas. While private providers offer relatively good service, their high one-time connection charges put that service out of reach for all, but the more affluent. The Government of Cambodia is piloting an output-based approach in four towns, where the private operator will be paid on the basis of performance - in large part, only after it has made a connection to a customer. Where connections are made to poor households deemed unable to pay, the operator will receive an International Development Association - IDA-funded subsidy.