The objective of the Water Supply and Sanitation Project for Ethiopia is increased access to sustainable water supply and sanitation services, for rural and urban users, through improved capacity of stakeholders in the sector. There are three project components. Component 1 provides funding (i) to increase the capacity of participating woredas to effectively manage their rural water supply and sanitation programs, (ii) to increase the capacity of participating communities to effectively manage their water supply and sanitation facilities, and (iii) to ensure that well functioning water supply schemes are in place in participating communities. Component 2 provides funding (i) to increase the capacity of participating water board committees and operators to effectively manage their water supply and sanitation facilities, and (ii) to ensure that well functioning and properly utilized urban water supply systems and improved sanitation are in place in participating towns and cities. Component 3 is designed to support improvements to monitoring and management of water resources management at the federal and regional levels. Funding would be provided to the MWR, WRDF and Regional Water Bureaus to build the capacity of staff and consultants for program implementation and monitoring, to equip water quality testing and training centers, to develop its web site and networking capabilities, to carry out applied research, and to refine its policies and program implementation arrangements