An intersectoral alliance among the Ministries of Water and Sanitation, Inclusion and Social Development and Finance launched an incentive performance fund (FED) for the amount of 300 million dollars and part of framework of the budget per results.

Part of this fund will be addressed to Municipal Technical Areas of Water and Sanitation (ATM) as regional bodies for the improvement of the operation, administration and maintenance of rural water systems and sanitation, water quality, personnel hiring, minor repairs among others.

This is an excellent opportunity on the institutionalization path of the ATMs, whose efforts are focused on supporting the W&S Steering community boards for the enhancement of the operation of the systems and water quality. Such measures are very much aligned with the indicators of SDGS of the increase access and better quality of W&S services.

FED was created based on experience of SABA in Huancavelica, which is the poorest region of Peru and thereby SABA team has been participating on the design and implementation of FED, sharing their lessons learned on the subject and providing technical assistance. This support is highly valued by both Ministries and important impact contribution of SABA on rural W&S policies.

This fund will be held in 2015 and it is expected to be extended until 2016.On the other hand FED will provide important lessons for the rural water and sanitation policies.