Full capital investment by donor funds or government
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Water
People receive facilities as a gift; historically linked to large externally-funded projects
Significant in the past and applied by various funding agencies including national governments, foreign donors and even NGOs. Now discouraged, with a paradigm shift towards cost sharing because of overall costs involved and to enhance ownership. Leveraging public resources is seen as a key component towards increased financial sustainability (http://planningcommission.nic.in/plans/mta/mta-9702/mta-ch20.pdf).
Sanitation
In the past, governments often provided 50% to 100% subsidies for household latrines, which tended to ignore or even ‘crowd out’ household resources. It was a typically supply- driven approach which often resulted in many unused facilities. This approach is now discouraged, shifting to cost-sharing or no subsidy because of cost involved and to enhance ownership (http://www.wsp.org/publications/af_finsan_mdg.pdf ).
