Water Resources Development Fund (WRDF) is a semi-autonomous government institution established in January 2002, with proclamation no.268/2002, to serve as a strategic financial wing for urban water, sanitation and irrigation development projects. This will be implemented by pooling funds from different multilateral and bilateral financial sources on the basis of cost recovery principle. Thus, WRDF provides long term loans for towns’ potable water supply and sanitation enterprises as well as irrigation associations. Based on this objective WRDF provides loans for water and sanitation Projects which fulfill its lending criteria.