Cooperative Bank in partnership to advance water and sanitation infrastructure projects

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:

1. Training and capacity building for project implementers (WSPs), ensuring they have the necessary skills and knowledge.
2. 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”.