The world’s first Development Impact Bond (DIB) for Water, Sanitation, and Hygiene (WASH), the Cambodia Rural Sanitation DIB, aims to eradicate the high rates of open defecation in the country and accelerate the Cambodian government’s efforts to reach universal sanitation and eliminate open defecation by 2025.
The DIB model is an innovative way of financing international development that improves value for money while increasing the efficiency and effectiveness of programs. Impact bonds are performance-based, meaning that investors are only paid a return if a set of pre-agreed targets are met. The Stone Family Foundation will provide the upfront investment required to achieve sanitation outcomes, which will be delivered through the third phase of iDE’s Sanitation Marketing Scale Up program. Payments of up to $9.99M will then be made by USAID to the Stone Family Foundation contingent on achievement of outcomes.