Rural Water Program

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This loan will finance construction of potable water and sanitation systems in impoverished rural areas and create legally autonomous community-based water organizations to administer them. Participation by the private sector will be promoted through "builder-operator" contract options, under which beneficiary communities can choose to select a private firm to build and operate the system. An estimated 25,000 people will benefit from the program, which will target the country's poorest rural areas. The operation will also help the Ministry of Water and Housing develop an institutional framework for a nationwide rural water initiative using a similar community-based approach.