Co-operative Bank has partnered with Aqua for All, Water.org and Water & Sanitation Services Provider Association to unlock Kshs 500 million in funding water supply and sanitation projects across Kenya.
Co-operative Bank, Director for Corporate and Institutional Banking, Lydia Rono says the funding will mainly target at least 15 infrastructure projects to capitalise them enhance access to safe drinking water and improve sanitation for 50,000 people in Urban, Peri-urban and rural populations in Kenya.
“We are excited about the alignment of vision among all partners, who have extensive experience and expertise in their respective areas crucial for effective financial, technical and infrastructure support,” Rono says.
The collaboration aims to catalyse funding for medium-sized infrastructure projects in the Water, Sanitation, and Hygiene (WASH) sector.
“We are especially keen to note that this engagement will in the long term improve the lives and livelihood of our communities in various parts of the country through improved water and sanitation services,” says the Co-operative Bank Director for Corporate and Institutional Banking.
The ultimate beneficiaries of the deal are the water service providers across the country who will be financed to enhance access to clean drinking water and improve sanitation services for communities.
The deal also involves training for water project implementers to ensure they have the necessary skills.
Water.Org, Regional Director for Africa, Francis Musinguzi says his firm will support at least 15 WSPs in developing bankable project proposals such as projects technical designs, financial proposals and environmental and social impact assessment reports, which they will submit to Co-operative Bank of Kenya when applying for the commercial loans.
“We will hire qualified National Consultants to work with the pre-qualified WSPs to develop the bankable project proposals while at the same time providing capacity building skills to the WSPs technical teams and the Co-op bank’s projects financing team on project proposal development, assessment/validation, financing, monitoring of project implementation and recording of the project impacts realized i.e. the outputs, outcomes and people reached,” says Musinguzi.
Aqua for All, Lead Impact Finance, Aarno Keijzer, said: “Through our partnership with Co-operative Bank of Kenya, we will enable Public Water utilities to access commercial financing for infrastructure projects aimed at improving efficiency. Our intervention will support investment projects that result in Non-Revenue Water (NRW) reduction, energy cost saving and enhance last mile connectivity for drinking water and sanitation.”
The program offers the following benefits to the WSPs:
- Access to loan facilities: The partnership is set to unlock over KES 500 million in loan facilities to finance WSPs’ viable water supply and sanitation projects, enabling more communities to have access to clean drinking water and improved sanitation services.
- Loan rebates upon successful implementation of the projects and after servicing of their loan facilities.
- Moratorium on principal loan repayment: Borrowers will enjoy up to 6-months grace period during the project construction phase before servicing their principal loan instalments.
- Affordable financial solutions: Beneficiaries will get access to low-cost financial resources, helping to ease the financial burden associated with project implementation.
- Comprehensive technical support: Training and capacity building for project implementers (WSPs), ensuring they have the necessary skills and knowledge.
- Assistance in developing bankable project proposals, alongside ongoing project monitoring and evaluation support.