The Programme aims at improving the sanitation infrastructures in Addis Abeba and at least 4 selected small and medium towns country wide. The implementing partner will be the Water Resources Development Fund (WRDF), the office within the Ethiopian Ministry of Water responsible for water and sanitation projects in urban areas. The Programme will have two components: the soft loan component will be used for infrastructure construction while the grant component will be used for capacity building for all stakeholders involved and for feasibility study and sanitation master plans. The implementation modality will be through the revolving fund mechanism established at WRDF. Loans will be given to the selected Town Water and Sanitation Utilities for financing sanitation infrastructures.