International Blended Water Investment Facility for Africa: Feasibility Study on the Fund

UNDP in collaboration with UNICEF, Global Water Partnership Africa (

United Nations / Multilateral body

)

#SDGAction50088

Description

The feasibility study will assess the need for the AIP International Blended Investment Facility as a mechanism to leverage public-private finance. The study will assess the need for an International Blended Investment Facility to support countries to leverage ODA and grant finance to de-risk priority water investments using a variety of innovative financial instruments and sources. These include sovereign wealth funds, guarantees, commercial finance, institutional investors and private equity investors, foundations, value-based impact investment, and climate finance. Delivery of water investments across Africa is below target to meet the continent’s growing needs. The World Bank estimates that at least US$30 billion/year needs to be invested to meet the SDG 6 target on water and sanitation. Currently, only US$10-US$19 billion is invested each year. Currently the subject of a feasibility study, the Facility will complement and leverage existing project preparation facilities for water and climate to mobilise investments for climate resilient development. The scope of investments targeted by the Blended Investment Facility is defined as investments across the entire water sector value chain in Africa, with suitable financing instruments developed for each investment category. The scope of the fund will include support to the three pillars identified as essential to close the water investment gap by the AIP Water Investment Scorecard: • Strengthening the enabling environment for water investments • Track and mobilise finance and investments • Enhancing investment performance and sustainability The Blended Investment Facility needs to mobilise additional investments by doubling the current rate of annual investments. The specific objectives are to: • Promote the financing of priority water investment projects to potential financiers across a broad spectrum including all potential public and private financing sources • Broker strategic linkages between project owners and suitable financiers • Provide ongoing technical assistance in investment development and facilitate resource mobilization across project preparation cycles The Blended Investment facility will specifically target the private sector as a major source of investments, and mobilise and blend public-private finance to close the water investment gap. The Fund will leverage new and existing water and climate resilience-related investments at a national, regional, continental, and international level, to mobilise private and commercial capital. The Blended Investment Mechanism will promote the scaling up of innovative proven financing mechanisms around the world including relevant concrete measures recommended in the 2015 Addis Ababa Action Agenda on financing sustainable development.

Expected Impact

The International Blended Water Investment Facility for Africa responds to the need to close the water investment gap in Africa. The Fund will also strengthen the Project Preparation Partnership for Climate Resilient Water Projects in Africa (launched 2018) to provide a structured resource for African countries to access strategic and technical support to prioritize and prepare climate resilient water projects. The Facility will support countries to leverage official development assistance and grant finance to de-risk priority water investments for financing using a variety of innovative financial instruments and sources. These may include sovereign wealth funds, guarantees, commercial finance, institutional investors and private equity investors, foundations, value-based impact investment, climate finance, climate funds, etc. The Facility will target the entire value chain of water supply and sanitation including water resource management and water governance. This will allow utility companies and water service companies in Africa to get financing independently that will allow them to invest in infrastructure and environmental management to provide safe water.

Partners

United Nations Development Programme, UNICEF, Development Bank of Southern Africa, Global Water Partnership Africa

Additional information

https://aipwater.org/wp-content/uploads/2023/02/TOR-Feasibility-Study-International-Blended-Water-Investment-Fund-for-Africa-final.docx

SDGS & Targets

Goal 3

Ensure healthy lives and promote well-being for all at all ages

3.1

By 2030, reduce the global maternal mortality ratio to less than 70 per 100,000 live births

3.1.1

Maternal mortality ratio

3.1.2

Proportion of births attended by skilled health personnel

3.2

By 2030, end preventable deaths of newborns and children under 5 years of age, with all countries aiming to reduce neonatal mortality to at least as low as 12 per 1,000 live births and under-5 mortality to at least as low as 25 per 1,000 live births

3.2.1

Under-five mortality rate

3.2.2

Neonatal mortality rate

3.3

By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and combat hepatitis, water-borne diseases and other communicable diseases

3.3.1

Number of new HIV infections per 1,000 uninfected population, by sex, age and key populations

3.3.2

Tuberculosis incidence per 100,000 population

3.3.3

Malaria incidence per 1,000 population

3.3.4

Hepatitis B incidence per 100,000 population

3.3.5

Number of people requiring interventions against neglected tropical diseases

3.4

By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being

3.4.1

Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease

3.4.2

Suicide mortality rate

3.5

Strengthen the prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol

3.5.1

Coverage of treatment interventions (pharmacological, psychosocial and rehabilitation and aftercare services) for substance use disorders

3.5.2

Alcohol per capita consumption (aged 15 years and older) within a calendar year in litres of pure alcohol

3.6

By 2020, halve the number of global deaths and injuries from road traffic accidents

3.6.1

Death rate due to road traffic injuries

3.7

By 2030, ensure universal access to sexual and reproductive health-care services, including for family planning, information and education, and the integration of reproductive health into national strategies and programmes

3.7.1

Proportion of women of reproductive age (aged 15-49 years) who have their need for family planning satisfied with modern methods

3.7.2

Adolescent birth rate (aged 10-14 years; aged 15-19 years) per 1,000 women in that age group

3.8

Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all

3.8.1

Coverage of essential health services

3.8.2

Proportion of population with large household expenditures on health as a share of total household expenditure or income

3.9

By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination

3.9.1

Mortality rate attributed to household and ambient air pollution

3.9.2

Mortality rate attributed to unsafe water, unsafe sanitation and lack of hygiene (exposure to unsafe Water, Sanitation and Hygiene for All (WASH) services)

3.9.3

Mortality rate attributed to unintentional poisoning

3.a

Strengthen the implementation of the World Health Organization Framework Convention on Tobacco Control in all countries, as appropriate

3.a.1

Age-standardized prevalence of current tobacco use among persons aged 15 years and older

3.b

Support the research and development of vaccines and medicines for the communicable and non-communicable diseases that primarily affect developing countries, provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration on the TRIPS Agreement and Public Health, which affirms the right of developing countries to use to the full the provisions in the Agreement on Trade-Related Aspects of Intellectual Property Rights regarding flexibilities to protect public health, and, in particular, provide access to medicines for all

3.b.1

Proportion of the target population covered by all vaccines included in their national programme

3.b.2

Total net official development assistance to medical research and basic health sectors

3.b.3

Proportion of health facilities that have a core set of relevant essential medicines available and affordable on a sustainable basis

3.c

Substantially increase health financing and the recruitment, development, training and retention of the health workforce in developing countries, especially in least developed countries and small island developing States

3.c.1

Health worker density and distribution

3.d

Strengthen the capacity of all countries, in particular developing countries, for early warning, risk reduction and management of national and global health risks

3.d.1

International Health Regulations (IHR) capacity and health emergency preparedness

3.d.2

Percentage of bloodstream infections due to selected antimicrobial-resistant organisms

Goal 6

Ensure availability and sustainable management of water and sanitation for all

6.1

By 2030, achieve universal and equitable access to safe and affordable drinking water for all

6.1.1

Proportion of population using safely managed drinking water services

6.2

By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations

6.2.1

Proportion of population using (a) safely managed sanitation services and (b) a hand-washing facility with soap and water

6.3

By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally

6.3.1

Proportion of domestic and industrial wastewater flows safely treated

6.3.2

Proportion of bodies of water with good ambient water quality

6.4

By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity

6.4.1

Change in water-use efficiency over time

6.4.2

Level of water stress: freshwater withdrawal as a proportion of available freshwater resources

6.5

By 2030, implement integrated water resources management at all levels, including through transboundary cooperation as appropriate

6.5.1

Degree of integrated water resources management

6.5.2

Proportion of transboundary basin area with an operational arrangement for water cooperation

6.6

By 2020, protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes

6.6.1

Change in the extent of water-related ecosystems over time

6.a

By 2030, expand international cooperation and capacity-building support to developing countries in water- and sanitation-related activities and programmes, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse technologies

6.a.1

Amount of water- and sanitation-related official development assistance that is part of a government-coordinated spending plan

6.b

Support and strengthen the participation of local communities in improving water and sanitation management

6.b.1

Proportion of local administrative units with established and operational policies and procedures for participation of local communities in water and sanitation management

Goal 8

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

8.1

Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries

8.1.1

Annual growth rate of real GDP per capita

8.2

Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

8.2.1

Annual growth rate of real GDP per employed person

8.3

Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

8.3.1

Proportion of informal employment in total employment, by sector and sex

8.4

Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-Year Framework of Programmes on Sustainable Consumption and Production, with developed countries taking the lead

8.4.1

Material footprint, material footprint per capita, and material footprint per GDP

8.4.2

Domestic material consumption, domestic material consumption per capita, and domestic material consumption per GDP

8.5

By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

8.5.1

Average hourly earnings of female and male employees, by occupation, age and persons with disabilities

8.5.2

Unemployment rate, by sex, age and persons with disabilities

8.6

By 2020, substantially reduce the proportion of youth not in employment, education or training

8.6.1

Proportion of youth (aged 15-24 years) not in education, employment or training

8.7

Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms

8.7.1

Proportion and number of children aged 5‑17 years engaged in child labour, by sex and age

8.8

Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment

8.8.1

Fatal and non-fatal occupational injuries per 100,000 workers, by sex and migrant status

8.8.2

Level of national compliance with labour rights (freedom of association and collective bargaining) based on International Labour Organization (ILO) textual sources and national legislation, by sex and migrant status

8.9

By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products

8.9.1

Tourism direct GDP as a proportion of total GDP and in growth rate

8.10

Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

8.10.1

(a) Number of commercial bank branches per 100,000 adults and (b) number of automated teller machines (ATMs) per 100,000 adults

8.10.2

Proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider

8.a

Increase Aid for Trade support for developing countries, in particular least developed countries, including through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries

8.a.1

Aid for Trade commitments and disbursements

8.b

By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization

8.b.1

Existence of a developed and operationalized national strategy for youth employment, as a distinct strategy or as part of a national employment strategy

Goal 9

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

9.1

Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all

9.1.1

Proportion of the rural population who live within 2 km of an all-season road

9.1.2

Passenger and freight volumes, by mode of transport

9.2

Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries

9.2.1

Manufacturing value added as a proportion of GDP and per capita

9.2.2

Manufacturing employment as a proportion of total employment

9.3

Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets

9.3.1

Proportion of small-scale industries in total industry value added

9.3.2

Proportion of small-scale industries with a loan or line of credit

9.4

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

9.4.1

CO₂emission per unit of value added

9.5

Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending

9.5.1

Research and development expenditure as a proportion of GDP

9.5.2

Researchers (in full-time equivalent) per million inhabitants

9.a

Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States

9.a.1

Total official international support (official development assistance plus other official flows) to infrastructure

9.b

Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

9.b.1

Proportion of medium and high-tech industry value added in total value added

9.c

Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020

9.c.1

Proportion of population covered by a mobile network, by technology

Goal 11

Make cities and human settlements inclusive, safe, resilient and sustainable

11.1

By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums

11.1.1

Proportion of urban population living in slums, informal settlements or inadequate housing

11.2

By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons

11.2.1

Proportion of population that has convenient access to public transport, by sex, age and persons with disabilities

11.3

By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries

11.3.1

Ratio of land consumption rate to population growth rate

11.3.2

Proportion of cities with a direct participation structure of civil society in urban planning and management that operate regularly and democratically

11.4

Strengthen efforts to protect and safeguard the world’s cultural and natural heritage

11.4.1

Total per capita expenditure on the preservation, protection and conservation of all cultural and natural heritage, by source of funding (public, private), type of heritage (cultural, natural) and level of government (national, regional, and local/municipal)

11.5

By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations

11.5.1

Number of deaths, missing persons and directly affected persons attributed to disasters per 100,000 population

11.5.2

Direct economic loss attributed to disasters in relation to global domestic product (GDP)

11.5.3

(a) Damage to critical infrastructure and (b) number of disruptions to basic services, attributed to disasters

11.6

By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management

11.6.1

Proportion of municipal solid waste collected and managed in controlled facilities out of total municipal waste generated, by cities

11.6.2

Annual mean levels of fine particulate matter (e.g. PM2.5 and PM10) in cities (population weighted)

11.7

By 2030, provide universal access to safe, inclusive and accessible, green and public spaces, in particular for women and children, older persons and persons with disabilities

11.7.1

Average share of the built-up area of cities that is open space for public use for all, by sex, age and persons with disabilities

11.7.2

Proportion of persons victim of non-sexual or sexual harassment, by sex, age, disability status and place of occurrence, in the previous 12 months

11.a

Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning

11.a.1

Number of countries that have national urban policies or regional development plans that (a) respond to population dynamics; (b) ensure balanced territorial development; and (c) increase local fiscal space

11.b

By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels

11.b.1

Number of countries that adopt and implement national disaster risk reduction strategies in line with the Sendai Framework for Disaster Risk Reduction 2015–2030

11.b.2

Proportion of local governments that adopt and implement local disaster risk reduction strategies in line with national disaster risk reduction strategies

11.c

Support least developed countries, including through financial and technical assistance, in building sustainable and resilient buildings utilizing local materials

Goal 13

Take urgent action to combat climate change and its impacts

13.1

Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

13.1.1

Number of deaths, missing persons and directly affected persons attributed to disasters per 100,000 population

13.1.2

Number of countries that adopt and implement national disaster risk reduction strategies in line with the Sendai Framework for Disaster Risk Reduction 2015–2030

13.1.3

Proportion of local governments that adopt and implement local disaster risk reduction strategies in line with national disaster risk reduction strategies

13.2

Integrate climate change measures into national policies, strategies and planning

13.2.1

Number of countries with nationally determined contributions, long-term strategies, national adaptation plans and adaptation communications, as reported to the secretariat of the United Nations Framework Convention on Climate Change

13.2.2

Total greenhouse gas emissions per year

13.3

Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

13.3.1

Extent to which (i) global citizenship education and (ii) education for sustainable development are mainstreamed in (a) national education policies; (b) curricula; (c) teacher education; and (d) student assessment

13.a

Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible

13.a.1

Amounts provided and mobilized in United States dollars per year in relation to the continued existing collective mobilization goal of the $100 billion commitment through to 2025

13.b

Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities

13.b.1

Number of least developed countries and small island developing States with nationally determined contributions, long-term strategies, national adaptation plans and adaptation communications, as reported to the secretariat of the United Nations Framework Convention on Climate Change

SDG 14 targets covered

Deliverables & Timeline

30 March, 2023

Feasibility Study Report on the Fund

31 May, 2023

Blended Mechanism/ Fund and Programme Design

30 June, 2023

Investor engagement and fund-raising strategy

31 December, 2030

Implementation

Resources mobilized

Financing (in USD)

US$65,000 for feasibility study

Staff / Technical expertise

AIP Expert Advisory Group, Technical Support for feasibility study

Partnership Progress

No progress reports have been submitted. Please sign in and click here to submit one.

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Feedback

Action Network

Timeline

31 March 2022 (start date)

31 December 2030 (date of completion)

Entity

UNDP in collaboration with UNICEF, Global Water Partnership Africa

SDGs

3 6 8 9 11 13

Region

Africa

Other beneficiaries

o 250 million people in Africa to benefit from resilient water investments and economic opportunities
o 4 million vulnerable, income-poor youth and women in Africa to benefit from indirect jobs opportunities created through water investments
o 1 million Africans to benefit from direct jobs created through climate resilient water and sustainable sanitation