Small Entrepreneurs Deliver Clean Drinking Water

IFC's collaboration with WaterHealth International has leveraged small entrepreneurs to bring clean drinking water to more than 266,000 people in India, Sri Lanka, and the Philippines. And this number will soon more than double.

IFC funding of WaterHealth International has resulted in the creation of 27 new small and medium enterprises, soon to expand to 62.

WaterHealth International had identified communities in India, Sri Lanka, and the Philippines that are drawing water from contaminated sources. Some would have to walk one kilometer to get unsafe water from a river. WaterHealth International's solution was a model of community water stores owned and managed by local small and medium entrepreneurs to commercially sell affordable clean drinking water.

IFC, through its Cleaner Technologies program (formerly the Environmental Opportunities Facility), provided a US$90,000 technical assistance grant to WaterHealth International to improve its business plan and then proceeded with a US$1,200,000 equity investment in the company. As a result, the company was able to launch its ground-breaking business model in the Philippines, India and Sri Lanka.

Not only humans can benefit
An unexpected outcome from WHI's operations in India was the use of the clean water by a poultry farmer for his baby chicks, at the suggestion of his veterinarian. He reported improved feeding habits and weight gain among the chick population and has cut their mortality rate in half while increasing his profits by 150%. "The birds were looking like polio patients earlier. But now they are growing healthy and beautiful and are fetching a good price for me. I am happy."

266,000 people have now gained access to clean drinking water thanks to this initiative. WaterHealth International is providing affordable water for which the poorest families are estimated to pay about 2% of their disposable income. At the same time, it is creating profitable new opportunities for small entrepreneurs.

When a tsunami hit the region in 2004, IFC added $250,000 worth of technical assistance from a US Trade and Development Agency trust fund to support emergency water provision for Sri Lanka. As a result 100,000 persons hit by the natural disaster have already or will gain access to clean drinking water.

IFC's experience with WaterHealth International demonstrates the benefits the private sector can deliver on a sustainable basis if venture capital can be accessed to accelerate technology transfer and the uptake of new business models in areas underserved by public utilities.

IFC's Sustainable Innovation activities, of which the Cleaner Technologies program is part, receives funding from the Netherlands, Italy, Norway, Switzerland, Austria, Luxembourg, New Zealand, Denmark and the IFC.

Contact Information

For additional information, please visit the Cleaner Technologies website. If you are interested in applying for funding, please fill in the Funding Proposal Checklist (54kb) and submit it to cleanertech@ifc.org.