A $10 million finance facility providing a package of innovative finance for private water operators with wrap-around support, encouraging the expansion of networks to cover 100% of accessible households.
We are partnering with GRET, iSEA and the Bank for Investment and Development of Cambodia (BIDC) to provide a package of innovative finance for private water operators.
This includes wrap-around support in technical and operational areas and sales and marketing to encourage the expansion of networks to cover 100% of accessible households.
The key element of this approach is to provide patient, flexible capital through ‘revenue finance’ – i.e. linking repayments to revenues (and therefore performance) as opposed to using a fixed interest rate.
The goal of an investment is to achieve a multiple of the principle sum provided, which ranges between x 1.3 and 1.6, over a period of time (an estimated nine to fifteen years).
The loan is repaid by receiving a percentage of water sales and so repayments adjust to seasonal variations. Unlike a traditional bank loan, there is no fixed term, rather if the operator performs well, the loan is repaid quicker once the investment multiple is achieved.
Alongside access to investment finance, the Foundation provides additional support to help the operator increase connections as quickly as possible – more connections mean more revenue, which will shorten the period of repayment for the operator.