Water micro-lending program gaining ground

• A new chapter in micro-lending brings access to safe water, sanitation; WaterPartners helps drive first credit facility founded by a non-governmental organization in the water sector

KANSAS CITY, Oct. 17, 2007 -- In cooperation with its local partner Gramalaya, located in Tiruchirappalli, India, WaterPartners International has turned a new chapter in the application of micro-credit for the world's poor. The Gramalaya Urban and Rural Development Initiatives and Network, or GUARDIAN, is believed to be the first of its kind anywhere -- a credit facility founded by a non-governmental organization in the water and sanitation sector.

WaterPartners has been a pioneer in the use of micro-finance for water and sanitation. Following successful initial pilot projects in India and Bangladesh beginning in 2004, WaterPartners is now expanding its WaterCredit Initiative to test different models of delivering credit to those in need of safe water -- and GUARDIAN represents the latest innovation in this regard.

With start-up funds provided by WaterPartners, GUARDIAN will be able to access private capital from commercial institutions and make loans to individuals who do not otherwise have access to credit, so that they will be able to obtain water hook-ups and build sanitation facilities. The individuals will be able to finance their loans largely through cost savings because the cost-per-liter of the municipal water system is 10 to 20 times lower than what they're currently paying street vendors for water. There will also be substantial time savings for those who wait in long lines at public standposts to get their water.

Why Micro-Credit is Needed in the Water Sector
With one in six people in need of access to safe drinking water, philanthropy alone is not meeting the world's water needs. Until now, nearly all water projects in developing countries have been 100 percent grant financed. For the first time, WaterCredit leverages resources from the bottom up, allowing poor people to participate in meeting their own water needs.

"Because the loans are repaid into a revolving fund, the number of people who can be served with the same dollars is greatly expanded," says John Fitzpatrick, Director of International Programs for WaterPartners. "Instead of waiting around for a grant that may not materialize for years or decades -- or ever -- WaterCredit empowers people to meet their own needs on their own timetable."

WaterPartners International is a U.S.-based non-profit organization that provides safe drinking water and sanitation to people in developing countries.

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