Pan-African implementer WASH-FIN program

Situation

OCA served as lead subcontractor for Africa under the Water, Sanitation & Hygiene Financing (WASH-FIN) program, a USAID funded program which seeks to close financing gaps to achieve universal access to water and sanitation services through sustainable and creditworthy business models, increased public funding, and expanded market finance for infrastructure investment. 

Our Process

We worked with Water Service Providers, primarily utilities, private sector water & sanitation providers, governments, regulators, banks, and other WASH stakeholders to improve financing to the sector.

In Kenya, OCA worked with dozens of Water Service Providers (WSPs) to improve their operations, develop growth strategies, and raise financing.  Our work involved building the capacity of the financial sector in Kenya and fostering knowledge sharing. We shared current, detailed information with financial institutions regarding the level of creditworthiness in the WASH sector, market opportunities for lenders and investors, and suggestions for tapping these opportunities. We offered technical support to these financial institutions and conducted sector studies for Kenya’s Ministry of Water and Sanitation to analyze current legal frameworks, structures, and best practices, and to recommend legal and structural changes to stimulate PPP financing in the sector.

In Senegal, OCA worked with private sector sanitation operators to improve investment readiness, provide transaction advisory support to enable them to leverage commercial financing to increase their service coverage, and build their capacity internally through tailored financial management training to continue growing post-investment. We also advised the government on a blended financing facility for local municipalities, enabling them to develop the infrastructure needed for the sanitation sector to flourish.

 

In Mozambique, OCA is supporting the creation of a blended finance fund to support the development of new water supply systems for small towns. This includes developing a financial model to assess the commercial viability of each small town and the flow of funds into (fund capitalization) and out of the fund (fund proceeds) to ensure that there is an appropriate match between the investment cycles, particularly when considering repayable finance. We are also providing capacity building to local private water providers (FPAs) and fecal sludge management (FSM) service providers to improve their business and financial management skills and enable access to finance.