Government (Public) Finance

This refers to the national budgets allocated to schools at decentralized levels, often via the Ministry of Education (MoE) . Decentralized institutions including local government are often the responsible entity for delivery of WASH in public institutions including schools, but often with a focus only on investment costs, i.e. rehabilitation and new facilities. In many contexts, particularly in developing countries, these budget allocations for WASH are normally minimal and far between.

This is because WASH programmes, especially in schools, often are not a priority for local governments due to other needs seen as higher priority, competition with other economic sectors, limited local resources, and public debt. For this reason, majority of public primary schools especially endure high WASH infrastructural gaps and overall deplorable WASH conditions.

While government financing remains the main source of funding that school managements can rely on for WASH improvement, there is still a critical need for ‘pro-WASH in schools’ policy advocacy to support mobilization of this government finance for WASH infrastructural development at least, since it never can cover O&M. This type of financing is more effective in urban areas where WASH gaps are more ‘visible’ compared to rural settings.

Donor Finance

This often represents foreign aid through donor grants and/or NGO support. Many WASH programs in schools have relied on this source of financing due to the inadequacy of the government finance. To secure donor financing, schools propose implementable WASH programs with the deliverables aligned with the donor organization’s grant objectives, such as cost recovery, children hygiene, circular economy, etc.

While often significant in proportion, and with a focus on capital investments too, this source of financing is not always sustainable, as WASH needs in typical public schools continue to grow with dynamic contextual factors such as population growth and climate change. However, it is a highly potent source of financing for schools in slums and/or rural areas especially, which fit the ‘underserved and marginalized’ category that is often preferable for donor funding.]

Private finance

The methods of financing under this include micro-financing/credit, loans, private sector, cooperatives, etc. They are a financing option with a repayment arrangement. Private financing has been trialed in communities in Kenya and Uganda through WASH loans entities to enhance access to WASH services such as piped water connection, acquisition of water storage tanks, pit rehabilitation and emptying services, etc. to great success.

This household success, however, has been difficult to replicate in schools since many public schools under the typical public governance structures and oversight, and constant financial constraint, remain coy on debt financing. With the growth of the private financing sector, however, organizations offering these financial services have developed, through strategic partnerships, flexible financing options such as end user financing, which allow for access to WASH products/services while easing the cash flow burdens on the clients.

Private financing has demonstrated potential for both capital and operational WASH investments, and is most potential for schools in urban areas where these private financing services often exist.

Community Fundraising

This source of financing is popular in bridging the O&M gaps which occur post-infrastructural developments for WASH by government or donor financing. It involves parents’ contribution to ensuring WASH facilities remain functional for their children in the schools. It is the most valued source of financing by school authorities due its reliability emanating mainly from the emotional investment around it by parents.

School management committees (SMCs) are often the governing entity for this arrangement, directly mobilizing both parents and teachers’ contribution on a needs basis, particularly for small but urgent capital inputs, for instance, for rehabilitation of a toilet block. In more typical cases, SMCs include an additional payment in the school’s fee structure to be paid by parents (as part of school fees) to cater for ongoing O&M needs. O&M of WASH facilities in schools is key for sustainability. It ensures toilets are cleaned on a regular basis – enhancing school children hygiene, and workers are paid.

The costs associated with O&M are normally recurring and form a key part of the school’s budget line, in an already often constrained WASH budget. Through SMCs, the community plays a vital fiscal role in keeping the school WASH systems sustainable. This type of financing is more ideal in rural settings where communities are more involved in school affairs compared to urban areas.