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Title
UN HABITAT - Guidelines on Revolving Funds for Community Managed Water Supply Schemes and Construction of Household Toilets in Urban Slums
in
Madhya Pradesh, India
Abstract
With rapid urban development, the gap between demand and supply in the water and sanitation
sector is widening, imposing stress on the basic infrastructure facilities by the urban local bodies,
which often fails to address the growing demand. In the process, the urban poor suffer the most and
are forced to live under unhygienic conditions in slums and shanty areas, lacking in basic amenities.
The efficient use of existing resources and community participation are imperative to make increased
water and sanitation coverage. The problem is more predominant in Asian countries who are ill
equipped to provide the needed safe water and sanitation to their growing population. The levels of
investments in the sector within the region are quite inadequate to bridge the widening demandsupply
gap and to extend services to low income and the needy population. External investments
into the sector are inadequate. Most governments are increasingly becoming aware of the significance
of domestic mobilization of funds.
There is need for more intensified funds for ensuring the urban poor to obtain improved services,
which requires to devise innovative financial mechanisms that focus on filling the critical financial
gap by involving NGOs and the community-based organizations (CBOs) and provide loans to initiate
development of water and sanitation facilities. The approach of ‘Revolving Fund’ would be an
appropriate solution to finance for the community initiatives in water and sanitation sector, particularly
for managing drinking water supply as well as construction of individual household toilets for safe
sanitation, through circulation of fund’ resources between the Fund and the Users and there by
building up for self-sufficiency and sustainability.
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