30 April 2015
April 2015 Water Finance Update
story highlights

During the month of April, international financial institutions (IFIs), including the African Development Bank (AfDB), Global Environment Facility (GEF), Inter-American Development Bank (IDB) and World Bank, announced financing for projects related to water resource management, sanitation services, and water conflict resolution.

In addition, the Global Water Partnership (GWP) undertook an initiative for climate-proofing water investment in the Caribbean.

afdb_gef_idb_gwpApril 2015: During the month of April, international financial institutions (IFIs), including the African Development Bank (AfDB), Global Environment Facility (GEF), Inter-American Development Bank (IDB) and World Bank, announced financing for projects related to water resource management, sanitation services and water conflict resolution. In addition, the Global Water Partnership (GWP) undertook an initiative for climate-proofing water investment in the Caribbean.

AfDB approved US$25.995 million for the Mahe Sustainable Water Augmentation Project (MSWAP) in the Seychelles, which will help the country implement its 2008-2030 Water Development Plan by reducing the number of days water is rationed and increasing water production capacity to cover areas in the island’s northern region. The island of Mahe expects to see a 130% increase in water demand by 2030; MSWAP seeks to improve quality of life and reliability of water services for household, industrial, commercial activities and tourism, especially in the dry seasons. The funding takes the form of a US$20.6 million loan and a US$1.4 million grant from the Middle Income Country Technical Assistance Fund. The Government of Seychelles will contribute US$3.995 million. [AfDB Press Release 1]

AfDB also announced a US$123.77 million loan for Angola’s Institutional and Sustainability Support to Urban Water Supply and Sanitation Service Delivery Project. The loan will finance institutional capacity building at the national and local level, strengthen water governance and increase access to water and sanitation services. Over a 60-month period, the Project intends to establish seven autonomous Provincial Water Supply and Sanitation Utilities and expects to directly benefit 922,000 people. Ultimately, an anticipated 2.3 million people in urban areas will experience improved access to water and sanitation. [AfDB Press Release 2]

Through its African Water Facility (AWF), AfDB is providing a grant of €3.3 million to the Darfur Water Project (DWP) for Peace Building and Conflict Resolution. The funds have assisted in construction of boreholes, elevated water tanks and water pipelines as well as the rehabilitation of water points. In addition, a water sector investment study is being conducted; the collection of data in 25 localities will provide development partners with detailed information and costing to invest up to US$100 million in Darfur’s water sector. [AfDB Press Release 3]

The GEF has approved funding for the Integrating Water, Land and Ecosystems Management in Caribbean Small Island Developing States (IWEco) project. IWEco, which will promote an integrated approach to water, land and ecosystem services management, is being led by the UN Environment Programme (UNEP), with some activities being co-implemented by the UN Development Programme (UNDP). The two organizations will assist Caribbean countries in instituting policy, institutional and legislative reforms and deploying effective technologies to increase access to safe and reliable water supplies and improved sanitation. Ten countries have expressed commitment to the project: Antigua and Barbuda; Barbados; Cuba; the Dominican Republic; Grenada; Jamaica; Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; and Trinidad and Tobago. [GEF Press Release] [UNEP Video]

IDB is supporting a project in Argentina to expand and improve potable water and sanitation services, primarily in Buenos Aires and provincial capitals. The US$200 million loan is being administered through IDB’s Credit Line for Water and Sanitation Program for Urban and Suburban Centers. The project benefits are expected to reach 500,000 people, especially disadvantaged populations. Efforts will include rehabilitating water and sewer systems, constructing new infrastructure, strengthening the regulatory framework and improving operational efficiency. [IDB Press Release]

The World Bank approved a US$4.5 million grant for the first phase of the Hebron Regional Wastewater Management Project. The funding will help finance the construction of a wastewater treatment plant expected to decrease pollution of the aquifer in Hebron Municipality in the West Bank and increase the health of 900,000 residents of Bethlehem and Hebron. [World Bank Press Release 1]

The World Bank announced a US$102.5 million loan to the Municipality of Guayaquil, Ecuador, for its Guayaquil Waste Water Management Project. The project strives to ensure universal access to a sewer for the southern part of the city by: installing household connections for 30,000 families; rehabilitating the West Suburb’s sewer network; and treating and disposing of wastewater in the entire Southern Guayaquil sewer system. The European Investment Bank (EIB) is providing US$102.5 million, and the Municipality will contribute US$42.8 million. [World Bank Press Release 2]

The World Bank is beginning Phase II of its Rural Development Program in the Solomon Islands. This second phase will put special emphasis on assisting Guadalcanal communities and farmers devastated by flash floods in 2014. Financing and technical assistance will help farmer groups partner with the private sector and access markets. [World Bank Feature Story 1]

In addition, the World Bank published updates on two of its water projects. According to an April feature story, farmers in Afghanistan have a more efficient irrigation system and are better equipped during a drought after a World Bank-supported project helped them line their canal with cement. The World Bank also published a brief explaining efforts under the Central Asia Energy-Water Development Program (CAEWDP) to use water-energy linkages to increase cooperation at the national and regional levels, leading to mutual benefits across the region. [World Bank Feature Story 2] [World Bank Brief]

GWP-Caribbean, with financial support from the Climate and Development Knowledge Network (CDKN), launched the initiative ‘Climate-Proofing Water Investment in the Caribbean,’ in partnership with the Caribbean Community Climate Change Centre (CCCCC). The project will develop a Caribbean Climate Resilience and Water Security Investment Plan (CCReWSIP). The plan will help coordinate efforts to identify, prioritize and source finance for water resources management that will boost climate change resilience. [GWP Press Release]