In Study Session 6 you learned about the categories of town for the urban WASH component of the OWNP. These are repeated in Table 10.1.

Table 10.1 Categories of town for the OWNP urban water supply component. (OWNP, 2013)

1	Towns/cities having utilities managed by a Water Board
2	Towns/cities having utilities but not managed by a Water Board
3	Small towns with water supply systems managed by WASHCOs or towns without a water supply system at all

The OWNP sets out two modalities for implementing the urban WASH component, which refer principally to the funding arrangements (described further in Study Session 12). These are:

Grant financing for capacity building, planning and improvements to administration and management systems (i.e. financial support from a donor, which is not paid back).
Soft loan financing for water supply expansion (i.e. a loan from foreign government or international financing institution, such as the World Bank, to be paid back but with a minimal interest rate).

Accordingly, the process and institutional arrangements differ. At town level there are two WASH structures and processes: one for water supply and one for urban sanitation and hygiene. Both will be integrated in the consolidated annual WASH plan to be approved by the City Council or Town Board.