USAID Global Water and Sanitation Program: Institutional Capacity Building for WASH Governance and Service Delivery

The USAID Global Water and Sanitation Program: Institutional Capacity Building for WASH Governance and Service Delivery is a transformative funding opportunity aimed at addressing the systemic failures in water and sanitation service delivery in developing countries. With over 2 billion people lacking safe drinking water and 3.5 billion without safely managed sanitation, the need for robust institutions that can effectively govern, finance, and manage WASH services has never been greater. This program directly responds to this crisis by investing in the capacity of local, regional, and national entities to take ownership of WASH governance and deliver services equitably and sustainably. The call, posted on USAID's website, encourages applications from a diverse range of organizations including NGOs, private sector firms, academic institutions, and government agencies. The total program budget is significant, with individual awards expected to range from $5 million to $25 million over a 3-to-5-year implementation period. The deadline for submissions is September 1, 2026, leaving adequate time for thorough proposal development. Key technical areas include policy and regulatory strengthening, financial management and cost recovery, performance monitoring, supply chain logistics, and community engagement. USAID emphasizes the integration of gender equality, climate resilience, and local leadership across all activities. Applicants must propose a clear theory of change, evidence-based interventions, and measurable capacity outcomes. For instance, a successful proposal might aim to increase the number of water utilities with certified financial management systems by 50% or reduce non-revenue water by 15% through better governance. The program aligns with the U.S. Global Water Strategy and contributes to Sustainable Development Goal 6. GSLI’s training courses, particularly in WASH, Financial Management for NGOs, and Project Management, provide the ideal knowledge base for organizations to design and implement such interventions effectively. By leveraging these courses, applicants can strengthen their institutional capacity and demonstrate a competitive edge in the evaluation process.

Strategic Overview

The USAID Global Water and Sanitation Program: Institutional Capacity Building for WASH Governance and Service Delivery is a transformative funding opportunity aimed at addressing the systemic failures in water and sanitation service delivery in developing countries. With over 2 billion people lacking safe drinking water and 3.5 billion without safely managed sanitation, the need for robust institutions that can effectively govern, finance, and manage WASH services has never been greater. This program directly responds to this crisis by investing in the capacity of local, regional, and national entities to take ownership of WASH governance and deliver services equitably and sustainably. The call, posted on USAID's website, encourages applications from a diverse range of organizations including NGOs, private sector firms, academic institutions, and government agencies. The total program budget is significant, with individual awards expected to range from $5 million to $25 million over a 3-to-5-year implementation period. The deadline for submissions is September 1, 2026, leaving adequate time for thorough proposal development. Key technical areas include policy and regulatory strengthening, financial management and cost recovery, performance monitoring, supply chain logistics, and community engagement. USAID emphasizes the integration of gender equality, climate resilience, and local leadership across all activities. Applicants must propose a clear theory of change, evidence-based interventions, and measurable capacity outcomes. For instance, a successful proposal might aim to increase the number of water utilities with certified financial management systems by 50% or reduce non-revenue water by 15% through better governance. The program aligns with the U.S. Global Water Strategy and contributes to Sustainable Development Goal 6. GSLI’s training courses, particularly in WASH, Financial Management for NGOs, and Project Management, provide the ideal knowledge base for organizations to design and implement such interventions effectively. By leveraging these courses, applicants can strengthen their institutional capacity and demonstrate a competitive edge in the evaluation process.

Who is it For?

This funding opportunity is specifically designed for legally registered organizations with demonstrated experience in WASH governance, capacity building, and service delivery in low- and middle-income countries. Eligible applicants include local and international non-governmental organizations (NGOs), civil society organizations (CSOs), private sector for-profit entities (especially those with a development mandate), academic and research institutions, public sector agencies (such as water utilities and ministries), and multilateral organizations. USAID strongly encourages applications from locally based organizations in target countries to foster ownership and sustainability. Grantee profiles should reflect a minimum of five years of operational experience in WASH, with a portfolio of at least three completed projects related to institutional strengthening, policy reform, or capacity building. Applicants must demonstrate the ability to work within complex governance structures, engage diverse stakeholders (including marginalized communities and women), and integrate gender equality and social inclusion (GESI) principles. Financial capacity is critical: organizations must have annual revenues exceeding $1 million and audited financial statements for the last two years to qualify. Additionally, partnerships and consortia are highly encouraged to pool technical expertise in areas such as procurement, supply chain management, M&E, and financial management. Entities that have previously received USAID funding must have a proven compliance record with no significant audit findings. For local organizations that lack prior USAID experience, GSLI’s course on Grants Management is essential to understand federal regulations, compliance requirements, and reporting standards. Furthermore, NGOs or public agencies with limited financial management capacity should consider GSLI’s Financial Management for NGOs training to ensure they can meet the rigorous fiduciary requirements expected by USAID.

Priorities

USAID’s global priorities for this program are rooted in the U.S. Global Water Strategy (2022-2032), which aims to achieve universal access to safe drinking water and sanitation by 2030. Specific investment KPIs include: (1) increasing the number of institutions with improved capacity to govern WASH services (targeting at least 200 institutions per award); (2) enhancing the quality of service delivery through strengthened regulatory oversight and accountability mechanisms; (3) achieving sustained behavior change in water sanitation practices among target populations; (4) mobilizing domestic funding for WASH (with a target of leveraging at least $1 for every $3 of USAID investment); and (5) improving gender equity in WASH workforce participation and decision-making roles. Technical priorities focus on four pillars: (a) strengthening WASH governance through policy diffusion, institutional reform, and transparent budgeting; (b) enhancing service delivery reliability through performance-based contracts and utility benchmarking; (c) reinforcing M&E frameworks with digitized data reporting systems integrated into national platforms; and (d) scaling community-led total sanitation (CLTS) and market-based solutions for last-mile access. Donors require interventions to be data-driven, with baseline studies and endline evaluations using standardized indicators such as the JMP (Joint Monitoring Programme) service ladders. Applicants are expected to incorporate climate resilience and water security adaptation strategies, aligning with USAID’s Climate Strategy. Additionally, there is a strong emphasis on fostering local leadership by building the capacity of local government units and community-based organizations to lead WASH programs. To align with these priorities, GSLI recommends its WASH course for an overview of contemporary approaches and its Project Management for Development course to ensure adherence to performance milestones.

Eligibility

Eligibility for this opportunity requires a comprehensive financial, spatial, and corporate legal audit. Financially, organizations must demonstrate a minimum budget absorption capacity of $2 million per year and provide audited financial statements for the most recent two fiscal years from an independent audit firm. Applicants must also have a transparent procurement policy in place, including a documented anti-corruption framework and conflict of interest policy. Spatially, organizations must either have an operational presence in the target country (e.g., registered office, staff, and program footprint) or a detailed partnership agreement with a locally registered entity that fulfills these criteria. The program will prioritize activities in Sub-Saharan Africa and South Asia, particularly in countries with the lowest WASH coverage such as Ethiopia, Nigeria, Bangladesh, and the Democratic Republic of Congo. Legal eligibility mandates that applicants be tax-compliant in their country of registration and not currently subject to any debarment or suspension by USAID or other US government agencies. For US organizations, Standard Form 424 must be submitted along with a valid UEI number and SAM.gov registration. Non-US organizations must ensure their country of origin is not listed as ineligible under US federal law. Additionally, the program caps indirect cost rates at 10% of total direct costs unless a Negotiated Indirect Cost Rate Agreement (NICRA) exists. To meet these stringent requirements, GSLI’s Procurement & Supply Chain course prepares staff to design accountable procurement systems, while the Financial Management for NGOs course enables organizations to maintain audit-ready records.

Path to Success

To secure this USAID grant, organizations must follow a strategic roadmap that integrates capacity building supported by GSLI courses. The first step is to conduct a thorough organizational capacity assessment using tools like the Organizational Capacity Assessment Tool (OCAT) to identify gaps in governance, financial management, M&E, and technical WASH expertise. Based on the assessment, enroll key staff in GSLI’s WASH course to deepen understanding of sectoral best practices, and in the Financial Management for NGOs course to strengthen fiduciary controls. This investment ensures that the organization’s internal systems align with USAID’s rigorous compliance standards. The second step is to build a consortium with complementary partners. Identify potential collaborators such as local government agencies, research institutions, and private sector providers that bring expertise in supply chain, behavioral change, or data management. Formalize partnership agreements with clear roles, responsibilities, and conflict resolution mechanisms. GSLI’s Grant Management course can be cross-sold to all consortium partners to standardize compliance knowledge and reduce risk. The third step is to design a results-oriented proposal that clearly articulates a theory of change linking capacity building to improved WASH outcomes. Use a logical framework with SMART indicators, such as ‘increase by 25% the number of local WASH committees with functional M&E systems.’ Integrate GSLI training as a core activity for capacity development, specifying that 50 staff members will be trained in M&E (using the Monitoring & Evaluation course) and in procurement transparency (using the Procurement & Supply Chain course). Allocate at least 15% of the budget to capacity building activities. The fourth step is to strengthen M&E systems by embedding GSLI’s M&E course as a mandatory prerequisite for program staff. Design a robust data collection and reporting framework that feeds into national WASH management information systems (MIS). Ensure that the proposal includes evaluability assessments and independent mid-term and end-line evaluations. Finally, prepare for financial audits by adopting GSLI’s Fundraising & Resource Mobilization course to diversify funding sources and the Writing Winning Proposals course to refine proposal submission. This comprehensive approach not only demonstrates institutional readiness but also aligns with USAID’s emphasis on local capacity strengthening.

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Deadline: 2026-09-01

Persona: General

Urgency: Normal