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Semelhante a Scaling up blended finance
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Scaling up blended finance
- 1. S c a l i n g U p B l e n d e d F i n a n c i n g o f W a t e r a n d S a n i t a t i o n I n v e s t m e n t s i n WORLD WATER WEEK K E N Y A WORLD WATER WEEK STOCKHOLM, SWEDEN AUGUST 28, 2016 K E N Y A S c a l i n g U p B l e n d e d F i n a n c i n g o f W a t e r a n d S a n i t a t i o n I n v e s t m e n t s i n
- 3. CHALLENGES TO COMMERCIAL LENDING FOR WATER COST RECOVERY TARIFF MARKET INTELLIGENCE ASSET OWNERSHIP PUBLIC ENTITY / GOV’T SHAREHOLDER PRO-POOR CONCERN OPERATING ENVIRONMENT HUMAN RIGHT HIGH INTEREST RATES
- 4. CREATING AN ENVIRONMENT CONDUCIVE TO COMMERCIAL LENDING KENYA SECTOR REFORMS Kenya Water Act of 2002 Autonomous Water Service Providers Independent Sector Regulator Ring Fencing of Revenues Stakeholder Engagement
- 5. Tariff setting methodology Public investment in infrastructure Strengthening of utility performance CREATING AN ENVIRONMENT CONDUCIVE TO COMMERCIAL LENDING
- 6. INCENTIVES FOR PRIVATE INVESTMENT RESULTS-BASED FINANCING GOVERNANCE BENEFITSPRIVATE SECTOR INVOLVEMENT CREDIT GUARANTEES
- 7. KENYA OBA FUND LACK OF ACCESS TO FINANCE GROWING POPULATION INVESTMENT NEEDS CHALLENGES
- 8. PROJECT STRUCTURE Kenya OBA Fund Project finance: OBA subsidies: 60% Commercial loans: 40%IVAreportstoMinistryofFinance 1 LOCAL COMMERCIAL BANKS $16m WATER SERVICES PROVIDERS 5 WSTF OBA SUBSIDY ($9.5m) 3 4 HOUSEHOLDS 2
- 9. DEVELOP BANKING PROPOSALS IMPROVING LENDER KNOWLEDGE ASSESSING UTILITY CREDITWORTHINESS TECHNICAL ASSISTANCE LEVERAGES COMMERCIAL LOANS TO WATER SERVICE PROVIDERSOBA
- 10. DEVELOPMENT IMPACT 10 30,000 low-income house- holds to gain access to water and sanitation services $9.5m subsidies to leverage $16m in private loan finance for county water service providers $2.4m technical and implementation work OBA
- 11. SCALING UP
Notas do Editor
- Water service providers often face multiple constraints in attracting commercial finance, due to: Perception of water as a social good with low ability to generate commercial returns. Enabling environment (regulatory, legal, policy frameworks) is unsupportive of commercial lending. (e.g., utilities not autonomous, no regulator to regulate tariffs, monitor utility performance) Utilities with limited borrowing experience lack financial management capacity to structure commercially viable projects and obtain loans. Low market intelligence resulting in project risk misperception (on behalf of borrower and lender) Utilities unable to meet collateral requirements of lenders. Commercial interest rates are high
- stakeholder engagement
- Photo: http://blogs.worldbank.org/category/tags/clean-cooking