The Water Resource Development Fund (WRDF) was established by the government in 2002 with proclamation no. 268/2002, to serve as a financial wing of the sector, with a major responsibility of centrally administering & mobilizing financial resources, as indicated in its proclamation, grants and loans from foreign governments and international donor agencies and budgetary allocations by the Federal Government and other sources. Thus, WRDF is mandated to play big role in financing urban water supply projects, sanitation projects and irrigation development schemes, through granting long term loan on the basis of cost recovery principle. And it collects loan repayments from its borrowers in due time and use it to build up its revolving fund, which is eventually anticipated to serve as the Water Bank. However, so far WRDF has not been exercising a separate sanitation project financing and implementation due to absence of clear regulation, mandate and procedures on sanitation implementation.
