The objectives of the Water Sector Reform Assistance Project are to support water sector reform by facilitating private sector participation in the management, and operation of water utilities, creating an improved environment for sustainable utilities, and, providing financial support to ensure their viability. The components will achieve those objectives by: 1) providing financial support to the public sector funding requirements of the water sector, and sanitation infrastructure in medium, and small size cities within Colombia's Caribbean region, ensuring the execution of respective works. Investments from Government counterpart funding will finance water supply civil works, and equipment in medium, and small cities located outside the Caribbean region, as an integral part of the project. Private sector participation will commit to provide a portion of their annual Law 60 income, to finance construction works, and operation of water utilities, of which a portion may be recovered from tariff incomes; 2) strengthening the sector environmental management capacity, through advisory services, namely for water quality, and effluent discharge regulations, and to define environmental requirements, and methodologies. Training programs will be sponsored, and, public consultations will focus on defining the criteria for water and sanitation services; 3) providing technical assistance (TA) for the development of rural water, and sanitation sector policy, strategy, and methods for an incremental coverage in the area; and, 4) providing project management costs, training, and TA to incorporate the private sector in the management, and operation of participating water, and sanitation utilities.