Partnership Announcement: Advancing Water and Sanitation Infrastructure Projects in Kenya

Co- operative Bank, Aqua for All, Water .org and Water &
Sanitation Services Provider Association (WASPA)  are excited to announce  a partnership that marks a significant step
forward in improving water and sanitation services in Kenya. This collaboration
aims to catalyze funding for medium-sized infrastructure projects in the Water,
Sanitation, and Hygiene (WASH) sector.

The partnership unveils a results-based financing program complemented
with an elaborate Technical Assistance Support system to grow a WASH portfolio
in Kenya. The ultimate beneficiaries of the partnership are Water Services
Providers (WSPs), also known as Water companies countrywide.  

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 installments.

• Affordable
  Financial Solutions:
  Beneficiaries will getaccess 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.

Speaking at the event Ms. Lydia Rono, the Bank’s Director for
Corporate and Institutional Banking  said,
“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. 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.

Aqua for All will support the bank to disburse Kes 500 million to
finance at least 15 infrastructure projects which will enhance access to safe
drinking water and improved sanitation for 50,000 people in Urban, Peri-urban
and rural populations in Kenya.

Speaking at the same event, Mr. Francis
Musinguzi the Africa Regional Director at Water.Org explained that the technical
assistance funding from Water.org, will support at least 15 WSPs in developing
bankable project proposals (i.e. projects technical designs, financial
proposals and environmental and social impact assessment (ESIA) 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”.

Aarno Keijzer, Lead Impact Finance, Aqua for
All,
while also speaking at the same event, commented: “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. With the results-based grant and technical assistance
support from Water.Org, we will support the Bank to disburse up to KES 500
million to finance at least 15 infrastructure projects which will enhance
access to safe drinking water and improved sanitation for 50,000 people in
Urban, Peri-urban and rural populations in Kenya”.

Together, we can
ensure that every community in Kenya has access to safe and sustainable water
and sanitation services.