The Philippine Water Revolving Fund (PWRF) was set up in 2008 to provide loans to water service providers—local government units (LGUs) and water districts (WDs)to finance local water and wastewater projects. Loan repayments made into the fund are revolved to finance other projects. The PWRF blends Official Development Assistance (ODA) and domestic public funds with commercial financing to lower borrowing rates, and to market water and sanitation projects to private finance institutions (PFIs). Concessional seed financing from the Japan Bank for International Cooperation (JBIC), was provided to the PWRF at the start of the program. The financing is backed by a standby credit line (to protect against liquidity risk) and a co-guarantor credit guarantee. Blending through the revolving fund has resulted in lower borrowing costs for water service providers and longer tenors. The different credit enhancements offered with PWRF lowered investment risk. The multi-layered approach of PWRF to mobilize commercial finance is important to bear in mind.