Results-based financing in the water sector

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As part of the Results-based Financing in the water sector project, the three Jordanian water supply companies are to be supported in carrying out small investment and maintenance measures to increase operational reliability. In particular, measures that contribute to increasing efficiency, saving energy and optimizing the costs of the existing infrastructure are considered. At the start of the project, the supply companies propose measures that are evaluated, priced and prioritized by an independent consulting company. The selected measures are then to be implemented independently by the companies. Once the desired result has been achieved, the companies will be paid by KfW based on the prices agreed at the start. The main objective of the project is the proper operation and maintenance of the water infrastructure and thus efficient management of the scarce groundwater resources in Jordan. Secondary objectives of the project are to contribute to increasing the transparency of the state water supply companies and to increase the adaptation capacity of the project sponsor and the water supply companies to climate change. Another secondary objective is the financial improvement of operations with a focus on energy efficiency measures, which should help reduce greenhouse gas emissions. The related project COVID 19 - Results-based program to ensure sustainable operations in the water sector aims to ensure the operation of critical water and wastewater infrastructure in the short term.