Viability gap funding for private water operators in rural Cambodia

Infrastructure is vital for economic growth, but investment gaps persist, especially in rural areas. Meeting the Sustainable Development Goals requires significantly increased funding. Blended finance, using development funds to mobilise additional investment, offers a solution. 

The study identifies systemic constraints and how, working through market actors sustainable service delivery models can be supported.

Cambodia demonstrates how small private operators can finance rural water infrastructure with a blended finance tool known as viability gap funding (VGF). VGF helps private water operators expand into unserved areas, triggering substantial private investment and connecting thousands of households. This model could be replicated in countries with similar characteristics.