Impact-Linked Finance is transforming rural water supply systems in Cambodia, helping expand reliable piped water to underserved communities.
When Nick Boerema first encountered Cambodia’s rural water sector in 2017, he was struck not only by limited access, but by the lack of systems able to sustainably connect entire communities, including households, schools and health facilities. Many existing systems were fragmented, underused, or not financially viable at scale.
This challenge led to the creation of Tap Effect, a technology-driven developer and operator of distributed rural water utilities. The company manages decentralised systems that serve households, schools and clinics, focusing on improving reliability, efficiency and financial performance through standardised operations.
At the heart of Tap Effect’s approach is a “utility-as-a-platform” model: operating its own systems while continuously refining service delivery through real-time community feedback. This enables the company to test and improve solutions directly within its infrastructure and scale what works. An in-house IoT system allows remote monitoring and automation of water treatment plants, supporting real-time decision-making and enabling multiple systems to be managed as a single portfolio.
However, scaling rural water access also depends on finance. Blended finance and innovative instruments such as Impact-Linked finance are essential to overcome the barriers in reaching last-mile households.
Rewarding impact, expanding rural water access
In 2024, Aqua for All provided Social Impact Incentives (SIINC) to reward Tap Effect’s measurable outcomes such as faster household connections, increased bathroom connections and improved access for lower-income (ID poor) households.
Thanks to the SIINC, Tap Effect has accelerated access to safe piped water in rural Cambodia, while also strengthening its data systems and investor readiness through clearer, time-bound impact measurement.
Looking ahead, Tap Effect aims to demonstrate that rural water utilities can be both inclusive and financially sustainable at scale, shifting from single-site projects to portfolio-based investment models that enable faster replication.
Read the interview and transaction snapshot to explore how Impact-Linked Finance can support technology and utility operations to scale last-mile water access with greater impact.