Spezialfonds der Afrikanischen Wasserfazilität (AWF) 2020-2022



Contract partner: AfDB - African Development Bank Country: Afrika, regional/länderübergreifend Funding amount: € 1.500.000,00 Project start: 01.09.2020 End: 31.12.2022

Short Description:

Overall goal


By the end of 2025 the African Water Facility (AWF) aims to leverage EUR 15 billion in investments for the African water sector. This is intended to finance infrastructure and the provision of services for drinking water and sanitation, agricultural irrigation, hydropower and multi-purpose water storage in the African region.


Expected results


Within the framework of projects prepared by the AWF, 25 million people will be provided with increased access to safely managed drinking water and 19 million with access to safely managed sanitation. In addition, 670,000 hectares of land are to be irrigated, hydropower capacity is to be increased by 2,100 MW and the volume of multi-purpose water reservoirs is to be increased by 14 billion m³.


Target group / Beneficiaries


For the period 2020-2022 ADA's contribution corresponds to 1.8% of AWF’s annual financing requirements and thus benefits about 88,000 people per year. The AWF is implemented by the African Development Bank (AfDB) and is a demand-driven, African institution-led project preparation facility that focuses on investment planning and preparation in order to mobilise investments to close the financing gap in the water sector. The AWF supports initiatives all over Africa.


Activities


AWF’s main activities consist of feasibility studies to validate project concepts and to make them investment-ready, as well as the development of project structure plans and transaction advisory services to make projects bankable and secure public and/or private financing. Seed funding is used to replicate or pilot innovative or alternative business models and technologies.


The current AWF strategy 2017-2025 focuses on leveraging investments through the following strategic priorities:

- Project preparation (75% of the fund budget)

- Catalytic investments (15% of the fund budget)

- Investment promotion (10% of the fund budget)


Context


Despite the doubling of financial aid in the last 20 years, there is an immense financing gap in the African water sector, which prevents the fulfilment of the "African Water Vision 2025" and the Sustainable Development Goals of the United Nations (SDGs). The problem is not a lack of financial resources, but the lack of bankable projects. For this reason, the African Ministerial Council on Water (AMCOW) launched the AWF in late 2004.

Through its strategy 2017-2025, the facility aims to contribute to the "African Water Vision 2025" and the SDGs (especially Goal 6) by developing and financing pro-poor projects with a focus on both water resources management and water supply and sanitation service delivery in Africa. Particular emphasis is placed on the leverage effect of investments and the innovative effects of the projects.

The contribution to the AWF is complemented by ADC’s financing of a technical advisor for climate change and water resource management at the AfDB (2352-00/2019).

project number 2318-00/2020
source of funding OEZA
sector Wasserversorgung und sanitäre Einrichtungen
tied
modality Basket funds/pooled funding
marker Environment: 1, Climate change adaptation: 1, Gender: 1
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.
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