The main objectives of the infrastructure projects to be financed by the RFWIBS shall be to improve the supply for drinking water and water for agricultural use for the poor while at the same time having a positive impact on regional water sector development and integration (“regional value added”). The “productive infrastructure” components may include small water retaining structures, small irrigation schemes, etc.
The water supply components will be the principal components of the projects to be financed, sanitation and hygienic measures as well as resources protection measures may be included as secondary components.
The projects activities eligible for financing under the Fund are:
Investments in regional physical infrastructure for water supply and basic sanitation or mitigation of climate change impacts;
Consultancy services for the delivery of implementation-ready projects; and
Complementary or necessary micro studies for the completion of the preparation of the feasibility of the submitted project. Such studies may include environmental and social impact assessment, regional impact assessment, etc.
The Consultancy services will be towards supporting the delivery of implementation-ready projects whilst the necessary smaller studies will be commissioned as complimentary work to support the closing of gaps for projects deemed not to be implementation-ready due to gaps in feasibility duties, cost estimations and financing proposals.
The Fund Agreement stipulates that the proposals or applications for the Regional Infrastructure Investment projects “ ..… must be based on feasibility studies and must include up-to-date cost estimations and financing proposals that guarantee full-cost recovery of the investment project and enable a sustainable operation of the regional investment project”.