12.2.1 Government of Ethiopia

Direct government financial support for WASH comes from a block grant that is channelled from federal to regional governments for both recurrent and investment costs. A block grant is an allocation of funds, usually on an annual basis, from federal to local levels of government. Investment costs, also known as capital costs, are the costs of new programmes and projects that only occur once. These include design, construction and commissioning costs. Recurrent costs include all the continuous costs of running an organisation or programme. Staff salaries are usually the largest component of recurrent costs.

In addition to the block grant amount there may also be federal government contributions that come as special purpose grants like the MDG fund, Food Security Programme, etc. to regions. Part of these funds may be allocated to WASH at regional level.

12.2 Sources of OWNP funding

12.2.2 External financing agencies