Uganda: OBA in Water Supply in Small Towns and Rural Growth Centers

In Uganda there are 160 small towns and about 850 rural growth centers, with a total estimated population of 2.5 million. In 2008 safe water coverage extended to about 46 percent of the population in the 160 small towns, and systems functioned 89 percent of the time on average. The government’s goal was to achieve 65 percent coverage and 95 percent functionality by 2015, and full coverage by 2035. To support the government of Uganda with this vision, GPOBA supported an OBA pilot project in small towns and rural growth centers to test a risk transfer mechanism that leverages private sector finance and expertise in system design, construction, and operation within the existing institutional framework. The project provided affordable safe water to new customers among poorer groups while promoting effective implementation, value for money, and private participation.