Deploy small but catalytic investments
AWF will deploy small but catalytic investments, or seed funding, that will enable project owners to implement their projects. As part of co-financing arrangements, support will primarily be provided to projects that:
- replicate or pilot innovative or alternative business models and technologies, whether through the public sector or commercialization;
- mobilise private sector financing but that need some Viability Gap Funding.
Projects expected to be financed include basic water and sanitation services, irrigation schemes that benefit smallholder (often women and the youth) farmers, and small-scale hydropower.
AWF will focus its Catalytic Investments on projects with the greatest opportunities for impact on the ground in terms of number of beneficiaries and funding leveraged. AWF will invest in projects where its funding provides the critical impetus for the project to happen and/or where the participation of the Facility’s concessional funds allows private players to increase their financing to the project.
The AWF will provide small but catalytic investments,that depending on circumstance may be reimbursable, for the following:
- Replicating and piloting innovative solutions
- Viability Gap Funding
Catalytic Investments complement the Project Preparation and Investment Promotion activities by providing limited but strategically utilised investments at the late stage development phases. In order to ensure leverage, AWF will only finance alongside other investors, and will not finance more than 33% of the project cost. The leverage factor (AWF investment compared to total project investment) will be used as a selection criterion.
This strategic focus will be allocated up to 15% of the program budget.
AWF offers grants of between €50,000 and €5,000,000 to fund water projects.
AWF in Action
Gambia: Support to national water sector reforms.
The AWF grant of €1,988,582 to the Gambia Ministry of Fisheries, Water Resources and National Assembly Matters will finance the implementation of national water reforms.