Matching Kenya’s water resources management needs to targeted funding through incentives for private sector investment
Introduction
The Funding Matchmaking Initiative aims to match country-defined priorities for water management improvements which are lacking financing or only have partial funding, with local funding sources, donors and other funding agencies that have available financing but which are not currently investing in water management at the scale required or in the most coordinated manner. To do so, it aims to leverage political and financial in-country support for the implementation of the actions in the coming years, to accelerate progress on the water-related SDGs, in line with the SDG 6 Global Acceleration Framework.
The Initiative is being piloted under the SDG6 IWRM Support Program (SDG6 SP) which operates under the guidance of the UN Environment Programme (UNEP), the Custodian Agency for indicator SDG 6.5.1, and is coordinated by the Global Water Partnership (GWP) in collaboration with UNEP-DHI Centre and Cap-Net. Kenya, is one of two selected countries (together with Guatemala) in this pilot project, that are being supported to complement the implementation of the IWRM Action Plan by focusing on one action from that plan which has not yet been implemented, and through expert support, identify potential donors and develop a pitch to present the action to those donors, so as to hopefully engage their financial support to the action for the coming years.
The Journey
In 2021, Kenya completed the Action planning process for integrated water resources management informed by SDG indicator 6.5.1: Degree of implementation of integrated water resources management (0-100). The process was led by the Ministry of Water, Sanitation and Irrigation through a multi stakeholder working set up to develop the Action Plan based on input and data from IWRM related sectors.
The Kenya SDG6 IWRM Action Plan identified six main priority actions out of nearly forty strategic actions. Out of the six, one was selected by stakeholders for implementation under the Matchmaking Initiative namely - Developing an incentive-based mechanism for Private Sector support to IWRM.
The rallying call
Comprehensive IWRM planning processes under this framework necessitate integration of key stakeholders and partners at local, regional, and national levels. Achieving this calls for establishment of multi-stakeholder platforms (MSPs) that bring key players together for better understanding of the scope and dimensions of the IWRM challenges and opportunity to develop shared priorities and work towards cost-effective solutions including piloting and proofing technologies, products, services, business models, public service delivery models, policy and regulatory innovations, and norms that together deliver new results. Strong Government leadership is essential in creating an enabling environment and building the political capital that is needed.
The Intervention
Since the Matchmaking kick-off meeting on 8th November 2021, tremendous progress has been made and two major deliverables have been drafted for finalization after discussions with key private sector actors. These are development of an integrated investment package and the pitch for presentation to potential donors.
This Integrated Water Resource Management Investment Package (IWRM-IP) presents integrated set of catchment conservation activities united under the common goal to enhance conservation and sustainable management of the catchment ecosystem for improved economic and social welfare. The package identifies and integrates the most critical catchment conservation funding priorities and serves as a marketing/ pitching tool for mobilizing new IWRM conservation funding flows.
The IWRM-IP encompasses the various catchment conservation activities targeted for upper Athi River Catchment Area as a pilot site. The investment package will be used to prepare pitches to identify partnership opportunities with other players including private sector partners, national or departmental governmental budgets, development partners or donors. The catchment conservation priorities have been structured and consolidated into four bankable Investment Packages (IP) consisting of 16 projects, thus providing a bouquet for potential funders to pick from. The 4 investment packages are:
- Catchment wise use and sustainable management
- Conservation awareness, capacity, and governance
- Sustainable livelihood opportunities
- Strengthening conservation law enforcement and sustainable management.
To hear more on this initiative, please join the webinar on September 8th at 4:30 PM CEST on how two countries are matchmaking funding for water security, which is part of the learning journey on Innovative Financing for Water Security through an IWRM Approach hosted on the SDG 6 IWRM Community. Register here for the event.