Eligible territories & entities
Projects are expected to take place within the boundaries of the SADC Member States. However projects taking place outside the boundaries of the Member States but for the benefit of SADC Member States will also be eligible.
All SADC Member States are eligible for RFWIBS financing as long as the proposed project is intended to support regional water infrastructure development within the scope outlined in section 9 of these Guidelines.
The following entities will be eligible:
- Governments of SADC Member States and their agencies (water utilities, local government, municipalities, etc.)
- Regional Institutions promoted by Governments of SADC Member States;
Projects promoted solely by private sector organisations shall not be eligible for RFWIBS grants. However, projects proposed by private sector organisations, and involving the participation of the public sector (Public-Private Partnerships (PPPs)) would be eligible for financing under the RFWIBS.
Project proposals can be promoted by two or more eligible entities. In this case, one of these entities will vest the role of the Applicant in the other, and the other(s), will play the role of the partner organisation(s).
Eligibility of costs included in the budget
Only “eligible costs” will be taken into account in the calculation of grants.
The eligible costs to be included in the budget are the following:
- Detailed project design
- Preparation of tender dossiers for works and supervision contracts
- Supervision of project implementation
- Works contracts for construction of hydraulic infrastructure
The following costs are not eligible:
- Debts and provisions for losses or debts
- Interest owed
- Items already financed in another framework
- Purchases of land or buildings
- Currency exchange losses
- Taxes, including VAT
Recipient contribution and size of grants
To ensure ownership and commitment by the beneficiary, it shall be a requirement that they contribute at least 10 % of the total project cost.
The RFWIBS will finance major service contracts only. Therefore, only projects requiring a grant of a minimum of 2,000,000.00 € (two million Euro) and a maximum of 4,000,000.00 (four million Euro) will be considered for support.
The financing structure must point out how the entire project is going to be financed and must specify the quota of financing expected from the SADC RFWIBS as well as the share to be financed by the beneficiary.
Costs must be inserted without VAT (VAT is not Applicants will have to provide in their applications, a detailed explanation of the activities to be implemented and the results to be achieved by the implementation of each activity. The host country needs to provide tax and custom exemption.
Costs must be recorded in the beneficiary's accounts or tax documents. They should be identifiable and verifiable, and be backed up by the original supporting documents.
The contribution of the beneficiary is a mandatory prerequisite to a project’s approval. This contribution must be at least 10 % of the cost of the project. The commitment may be financial or in kind and has to be proven with the application to RFWIBS, the modalities of the beneficiary’s contribution to the project will be defined in the grant agreement between the DBSA and the beneficiary.
The Currency to be used for each project will be agreed with the beneficiary.
The exchange rate for operations in a different currency is the one published by the Reserve Bank of South Africa on the day the transaction takes place.