Further to the Kenyan Water Act of 2002, the small water project has to sign a Service Provision Agreement (SPA) with the Water Service Board (WSB) in whose jurisdiction it falls (for example, the Athi Water Services Board-AWSB for the area surrounding Nairobi). Upon successful completion of the project, the Global Partnership for Output-based Aid (GPOBA) pays subsidies to the small piped water project (figure below), which reduces the overall size of the loan to the communities, and keeps debt service payments affordable. It also provides better risk management from the lender’s perspective and increases incentives for project completion as the subsidy is transferred upon the delivery of agreed outputs (including the increase in the number of connections and changes in revenues collected).