Output-Based Aid in India: Community Water Project in Andhra Pradesh

Providing safe drinking water to poor families in the coastal area of Andhra Pradesh is critical for the economic development of the region as well as to improve health and living conditions. A community water project supported by GPOBA is increasing innovation and efficiency in the sector through a community-based public-private partnership model using cost-effective water purification technology.
Enhancing the sustainability of pilot water projects in villages in Andhra Pradesh has been a key part of the project design. The scheme provides a performance-based subsidy linked to the delivery of pre-agreed outputs which include three months of billed water services. The project has potential for replication in other villages in Andhra Pradesh and ultimately in other parts of India.