USAID RFP: Strengthening Governance and Financial Management of WASH Utilities in Fragile States

The United States Agency for International Development (USAID) has released a Request for Proposals (RFP) focusing on strengthening governance and financial management of water, sanitation, and hygiene (WASH) utilities in fragile states. This initiative is part of a broader effort to address the chronic underperformance of utilities that leaves millions without access to safe water and sanitation. The RFP seeks proposals that can deliver systemic reforms, build institutional capacity, and foster sustainable financial models. The total estimated funding is around $100 million over 5 years, with possible individual awards up to $25 million. The deadline for submissions is August 1, 2026, creating a sense of urgency but also allowing time for thorough preparation. USAID expects high-quality proposals that reflect a deep understanding of the operating context in fragile states, where conflict, weak governance, and limited resources pose unique challenges. Proposers must demonstrate expertise in utility management, public financial management, community engagement, and monitoring and evaluation. The RFP encourages innovative approaches, including the use of digital technologies, performance-based financing, and partnerships with local financial institutions. Importantly, the RFP requires a strong emphasis on gender equity and social inclusion, ensuring that reforms benefit vulnerable populations. This is a significant opportunity for organizations with a proven track record in WASH governance, but it demands meticulous planning and a multidisciplinary team. GSLI's range of specialized courses can help fill any competency gaps and strengthen your proposal's capacity development component.

Strategic Overview

The United States Agency for International Development (USAID) has released a Request for Proposals (RFP) focusing on strengthening governance and financial management of water, sanitation, and hygiene (WASH) utilities in fragile states. This initiative is part of a broader effort to address the chronic underperformance of utilities that leaves millions without access to safe water and sanitation. The RFP seeks proposals that can deliver systemic reforms, build institutional capacity, and foster sustainable financial models. The total estimated funding is around $100 million over 5 years, with possible individual awards up to $25 million. The deadline for submissions is August 1, 2026, creating a sense of urgency but also allowing time for thorough preparation. USAID expects high-quality proposals that reflect a deep understanding of the operating context in fragile states, where conflict, weak governance, and limited resources pose unique challenges. Proposers must demonstrate expertise in utility management, public financial management, community engagement, and monitoring and evaluation. The RFP encourages innovative approaches, including the use of digital technologies, performance-based financing, and partnerships with local financial institutions. Importantly, the RFP requires a strong emphasis on gender equity and social inclusion, ensuring that reforms benefit vulnerable populations. This is a significant opportunity for organizations with a proven track record in WASH governance, but it demands meticulous planning and a multidisciplinary team. GSLI's range of specialized courses can help fill any competency gaps and strengthen your proposal's capacity development component.

Who is it For?

This RFP is targeted at a broad range of organizations capable of implementing large-scale governance and financial management reforms in WASH utilities operating in fragile states. Eligible entities include international and local non-governmental organizations (NGOs), private sector consulting firms, academic and research institutions, public-private partnerships, and multilateral organizations. USAID particularly encourages applications from consortia that combine technical, financial, and local expertise. Organizations must demonstrate a proven track record in at least two of the following areas: utility performance improvement, financial management for public services, community engagement in fragile contexts, or institutional capacity building. The RFP is open to for-profit and non-profit entities, but all applicants must comply with USAID's regulations on procurement, anti-terrorism, and conflict of interest. For local organizations, the RFP may require partnering with an international lead to meet funding thresholds. GSLI's courses in Project Management for Development, Financial Management for NGOs, and Procurement & Supply Chain are ideal for building the necessary competencies across partner organizations, ensuring that even smaller local actors can contribute effectively to the consortium's delivery.

Priorities

USAID's core priorities for this RFP include enhancing financial viability of WASH utilities, improving service delivery in underserved areas, and strengthening institutional governance. The donor expects measurable improvements in key performance indicators such as revenue collection efficiency (target >90%), reduction of non-revenue water (target <20%), and increased customer satisfaction. Additionally, the RFP prioritizes cross-cutting themes like gender equity, climate resilience, and conflict sensitivity. Proposals must articulate how they will integrate these themes into utility reforms, for example, by ensuring women's participation in tariff setting or incorporating climate risk assessments. USAID also emphasizes sustainability, requiring a clear plan for utilities to achieve operational cost recovery within the project period. The donor is likely to favor innovative approaches such as performance-based contracts, digital financial management tools, and results-based financing. GSLI's courses in Monitoring & Evaluation (M&E) and Fundraising & Resource Mobilization prepare teams to design robust metrics and diversify funding, aligning perfectly with USAID's emphasis on evidence-based, sustainable outcomes.

Eligibility

Eligibility for this RFP requires thorough financial, spatial, and corporate legal compliance. Financially, applicants must have a stable audit record for the last two fiscal years, with no material weaknesses, and demonstrate capacity to manage grants up to $50 million. Spatially, the project may target multiple fragile states or a single high-priority nation; applicants must specify which countries they will operate in, with a justification based on need and feasibility. Legally, all organizations must be registered in a country that is a signatory to the OECD's anti-bribery convention or have equivalent national laws. For local partners, USAID may require a foreign organization registration (for U.S. awards) or evidence of local legal status. Additionally, any organization that has been debarred or suspended by any U.S. government agency is ineligible. The RFP mandates a risk assessment of each consortium member, covering financial, operational, and reputational risks. GSLI's Grants Management course offers detailed guidance on navigating USAID's eligibility requirements, including sub-recipient monitoring and compliance with 2 CFR 200.

Path to Success

To succeed with this USAID RFP, proposers must follow a strategic roadmap that integrates GSLI training at every stage. Step 1: Early Consortium Formation and Capacity Assessment – Conduct a thorough gap analysis of your consortium's expertise in governance, finance, and WASH utilities. Use GSLI's Financial Management for NGOs and Procurement & Supply Chain courses to upskill staff lacking these core competencies. Step 2: Co-Design with Local Stakeholders – Engage local utilities, ministries, and civil society in a participatory design process. GSLI's Public Health & Epidemiology and WASH courses provide insights into community needs and health impact, ensuring your approach is context-sensitive. Step 3: Develop a Robust M&E and Risk Framework – Design a results framework with baseline data, milestones, and exit criteria. GSLI's Monitoring & Evaluation course teaches how to select valid indicators and use geospatial tools for real-time tracking. Step 4: Write a Compelling, Compliant Proposal – Use GSLI's Writing Winning Proposals course to structure your narrative around USAID's evaluation criteria: technical approach (40%), organizational capacity (30%), and cost effectiveness (30%). Include a detailed budget narrative and a sustainability plan that outlines how utilities will continue reforms after project end. Throughout, leverage GSLI's Fundraising & Resource Mobilization course to demonstrate how your consortium can attract co-financing or in-kind contributions, a significant advantage. Finally, submit early to allow time for consortium members to obtain necessary registrations or clearances. This roadmap, grounded in GSLI's expert-led training, maximizes your proposal's quality and compliance.

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Deadline: 2026-08-01

Persona: General

Urgency: Normal