Pipeline
| ID | INDIGO-PL-0027 |
|---|---|
| Project Name - (Value) | Fresh Life: scaling urban sanitation with results-based finance (RBF) |
| Contact - Name - (Value) | Louise Couder |
| Contact - Email - (Value) | louise.couder@fresh-life.org |
| State of Development - (Value) | Current |
| State of Development - (Source ID's) | source1 |
| Stage of Development - (Value) | Early stage |
| Stage of Development - (Source ID's) | source1,source2 |
| Stage of Development - (Notes) | Early-stage design, Late-stage design |
| Type of instrument and project - Impact Bond - (Value) | No |
| Type of instrument and project - Outcomes Fund - (Value) | No |
| Type of instrument and project - Social Impact Incentives (SIINC) - (Value) | No |
| Type of instrument and project - Social Impact Guarantee - (Value) | No |
| Type of instrument and project - Payment-by-results (no pre-financing) - (Value) | Yes |
| Type of instrument and project - Technical Assistance and Market-building program (Must involve dedicated grant resources) - (Value) | No |
| (Source ID's) | source1,source2 |
| Part of a larger outcomes-based financing program? - Part of a larger outcomes-based financing program? - (Value) | No |
| Part of a larger outcomes-based financing program? - (Source ID's) | source1 |
| Dates - Expected Launch Date - (Value) | Q1 - 2023 |
| Dates - Total expected project development time - (Value) | 12-24 months |
| Dates - Expected length of project (years) - (Value) | 4.5 |
| Dates - Project design process began - (Value) | March 2021 |
| Dates - (Source ID's) | source1 |
| Rationale for using outcome based finance - (Value) | Scaling up Sanergy’s offering will bring economies of scale and efficiencies to the delivery of their services. The long term ambition is to achieve financial sustainability via results-based contracts with municipalies. The proposed outcomes-based model will create a natural bridge from donor subsidies to municipality funding, by allowing external funding to taper out as local funding tapers in, avoiding funding cliff-edges or re-procurement risks |
| (Source ID's) | source1 |
| Key challenges to launch - (Value) | Securing the level of outcomes funding needed to deliver scale and impact |
| (Source ID's) | source1 |
| Role of the domestic government - Outcomes funder - (Value) | No |
| Role of the domestic government - Service provider - (Value) | No |
| Role of the domestic government - Member of project committee - (Value) | Yes |
| Role of the domestic government - No formal role - (Value) | No |
| (Source ID's) | source1 |
| Service providers identified and selected - Request-for-proposals - (Value) | No |
| Service providers identified and selected - Direct contracting by outcome funder/investor/intermediary - (Value) | No |
| Service providers identified and selected - Provider-led deal development - (Value) | Yes |
| Service providers identified and selected - Other - (Value) | Stone Family Foundation, an existing grant funder of Sanergy and investor in the Cambodia Rural Sanitation DIB, connected Sanergy with Social Finance with the ambition that SF could support Sanergy in exploring a move towards outcomes-based funding, building off experience from the Cambodia DIB |
| (Source ID's) | source1 |
| Feasibility study - (Value) | Yes |
| (Source ID's) | source1 |
| Proposed financing instruments - Debt - (Value) | Yes |
| Proposed financing instruments - Equity - (Value) | No |
| Proposed financing instruments - Guarantee - (Value) | No |
| Proposed financing instruments - Grant - (Value) | Yes |
| Proposed financing instruments - Other - (Value) | Other: likely to need to be an investor (or investors) |
| (Source ID's) | source1,source2 |
| Technical assistance grant - Technical assistance grant - (Value) | Yes |
| Technical assistance grant - Details - (Value) | Social Finance has been contracted by Sanergy to provide technical assistance to support the financial model and suitability analysis required in order to demonstrate the role of outcomes-based funding |
| Technical assistance grant - (Source ID's) | source1 |
| Overall project finance - Estimated Maximum potential outcome payment - Currency - (Value) | TBD |
| Overall project finance - Estimated Maximum potential outcome payment - Amount - (Value) | TBD |
| Overall project finance - (Source ID's) | source1 |
| Purpose and classifications - Social/Developmental challenge - (Value) | Currently, 60 million new residents move to urban areas every year. One in four lives in slums, amounting to over 1 billion people. The vast majority (more than 70%) have no access to safe sanitation services and, in effect, are living in their waste. In Kenya this issue is clear and in Nairobi alone, 60% of the population live in informal settlements and 60% of the city remains unconnected to the sewerage system. |
| Purpose and classifications - Expected intervention model - (Value) | Sanergy, established in 2011 to address the sanitation value chain in the low-income informal settlements of Nairobi, provides container-based sanitation services, offering an end to end sanitation solution to residents. These waterless sanitation facilities are leased to local residents, who pay a monthly subscription fee to be part of the network. Sanergy collects the waste through a professional logistics team, provides operational and maintenance support, liaises with government to ensure compliance, and guarantees that all waste is safely treated. |
| Purpose and classifications - Policy sector - Employment and private sector development - (Value) | No |
| Purpose and classifications - Policy sector - Education - (Value) | No |
| Purpose and classifications - Policy sector - Social protection - (Value) | No |
| Purpose and classifications - Policy sector - Criminal justice - (Value) | No |
| Purpose and classifications - Policy sector - Health - (Value) | Yes |
| Purpose and classifications - Policy sector - Agriculture - (Value) | No |
| Purpose and classifications - Policy sector - Environment and climate change - (Value) | No |
| Purpose and classifications - Policy sector - Water, Sanitation and Hygiene - (Value) | Yes |
| Purpose and classifications - Policy sector - Energy - (Value) | No |
| Purpose and classifications - Policy sector - Humanitarian - (Value) | No |
| Purpose and classifications - Secondary SDG goals - (Value) | 3,6,8,11 |
| Purpose and classifications - (Source ID's) | source1,source2 |
| Service users and beneficiaries - Target population - (Value) | Informal settlements in Nairobi |
| Service users and beneficiaries - Targeted number of unique service users or beneficiaries (total) - (Value) | 463000 |
| Service users and beneficiaries - Unit type of targeted service users or beneficiaries - (Value) | Individual |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Low-income - (Value) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Lower-middle-income - (Value) | Yes |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Upper-middle-income - (Value) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - High-income - (Value) | No |
| Service users and beneficiaries - (Source ID's) | source1 |
| Notes - (Value) | Data for this pipeline project was last updated in April 2022. |
| Delivery Locations 1: Location - Name - (Value) | Kenya |
| Delivery Locations 1: Location - Country - (Value) | KE |
| Delivery Locations 1: Notes | Nairobi |
| Sources 1: Id | source1 |
| Sources 1: Name - (Value) | Data shared by key stakeholders of the project through March 2022 Levoca questionnaire |
| Sources 2: Id | source2 |
| Sources 2: Name - (Value) | Data shared by key stakeholders of the project through March 2024 Levoca questionnaire |
| Service Provisions 1: Notes | Sanergy |
| Outcome Payment Commitments 1: Notes | TBD (MDBs, Government, Foundations) |
| Investments 1: Notes | TBD |
| Intermediary services 1: Organisation Role Category - (Value) | Other |
| Intermediary services 1: Other Role Description - (Value) | Advisor |
| Intermediary services 1: Notes | Social Finance |
| Intermediary services 2: Organisation Role Category - (Value) | Other |
| Intermediary services 2: Other Role Description - (Value) | Evaluator |
| Intermediary services 2: Notes | TBD |
| Intermediary services 3: Organisation Role Category - (Value) | Other |
| Intermediary services 3: Notes | Stone Family Foundation |
| Outcome Metrics 1: Outcome Definition - (Value) | TBD. May include: # of households reached, volume of waste removed, volume of wase safely treated at treatment plant, sustained use of toilet at 6/12 months. |
| Outcome Metrics 1: Outcome validation Method - (Value) | Non-experimental |