They found that, given the difficulties encountered to finance the sector compared to opportunities in other sectors, a dedicated financing vehicle (a “PIDG Water Window”) should be set up in order to blend grant financing with the financial instruments provided by PIDG facilities and therefore reduce the cost of finance. This vehicle is still at the feasibility stage at present. At the time, municipal governments had no experience with borrowing from banks. Commercial lenders had only short-term deposits and no experience with lending to municipal governments.