Guidelines on revolving funds for community managed water supply schemes and construction of individual household toilets in urban slums in Madhya Pradesh, India

The Water for Asian Cities (WAC) Programme, a collaborative initiative between UN-HABITAT and Asian Development Bank is supporting the implementation of the water and sanitation related targets in Asian cities and promoting new/innovative investments in the urban water and sanitation sector. The WAC programme has initiated a Revolving Water Fund (RWF) for Community Managed Water Supply Scheme (CMWSS) as a pilot demonstration project in Gwalior, Jabalpur and Indore. A Revolving Sanitation Fund (RSF) has also been created for the Slums Environmental Sanitation Initiative and is being implemented as a demonstration project in Bhopal, Indore, Gwalior and Jabalpur. This approach has been a special micro-financing measure for providing loans to Community Water and Sanitation Committee/ Self Help Groups from the fund and then uses the repayments from the CWASC/SHG to provide loans to other members of the same, thus “revolving” or reusing the capital. The recovery of the cost is expected to generate a sense of ownership and ensure financial viability and sustainability. This publication evolved on the basis of the learning and experiences through the pilot demonstration projects and in partnership with UN-HABITAT. They are targeted to all the relevant stakeholders to put in practice for increasing the coverage of water as well as sanitation facilities for zero open defecation.