The Kenyan regulator, WASREB, collaborated with the World Bank to develop a mechanism to assess utility creditworthiness. In 2011, given the non-existence of formal credit ratings by accredited agencies, shadow credit ratings for 43 Kenyan utilities were published, which gave borrowers and lenders an objective overview of creditworthiness and risk. Thirteen utilities were given investment-grade ratings and another 16 utilities were rated ‘near-investment’. Together with WASREB’s impact report, which documents the performance of Kenya’s water services sector, the ratings provided utilities with a diagnostic tool with which to identify areas for improvement.
In Indonesia, there are two main programmes to implement incentive-based financing in the water, sanitation and hygiene sector in Indonesia. These are the ‘Water Hibah’ (a grant to incentivize local governments to allocate their budget in order to increase households’ connection to piped water supply systems in urban and rural areas) and the ‘Sanitation Hibah’ (a grant to incentivize local governments to allocate their budget to increase access to improved sanitation: for example, by increasing house connections to existing city-scale sewerage systems, the development of new decentralized sewerage systems, and upgrades to septic tanks at household level).
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