Pipeline
| ID | INDIGO-PL-0036 |
|---|---|
| Project Name - (Value) | Refugee Impact Bond (Second Tranche) |
| Contact - Name - (Value) | Serena Guarnaschelli |
| Contact - Email - (Value) | serena@koisinvest.com / juliette.averseng@koisinvest.com |
| State of Development - (Value) | Current |
| State of Development - (Source ID's) | source1 |
| Stage of Development - (Value) | Late stage |
| Stage of Development - (Source ID's) | source1 |
| Stage of Development - (Notes) | The Refugee Impact Bond 1st tranche is closed and launched. Fundraising is ongoing for the 2nd tranche in Lebanon with first investor comittment from DFC confirmed |
| Type of instrument and project - Impact Bond - (Value) | Yes |
| 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) | No |
| Type of instrument and project - Technical Assistance and Market-building program (Must involve dedicated grant resources) - (Value) | No |
| (Source ID's) | source1 |
| Part of a larger outcomes-based financing program? - Part of a larger outcomes-based financing program? - (Value) | Yes |
| Part of a larger outcomes-based financing program? - Details - (Value) | The project is the 2nd tranche of the Refugee Impact Bond. The 1st tranche was launched in Jordan in September 2021. |
| Part of a larger outcomes-based financing program? - (Source ID's) | source1 |
| Dates - Expected Launch Date - (Value) | Q2 - 2023 or later |
| Dates - Total expected project development time - (Value) | 6-12 months |
| Dates - Expected length of project (years) - (Value) | 4 |
| Dates - Project design process began - (Value) | Q1 2016 |
| Dates - (Source ID's) | source1 |
| Rationale for using outcome based finance - (Value) | Livelihoods programmes have great potential to improve refugees’ living conditions and to boost the host country’s economy, as refugees spend the money they earn. However, they are a relatively new area for humanitarian organisations and can be challenging to implement, which means traditional donors are reluctant to take the risk of funding them. When programmes do exist, results are often disappointing owing to top-down or ‘one-size-fits-all’ approaches. Finally, funding contingent on activity-based annual cycles, hampers efficacy and innovation. The DIB transfers the risk of funding a multi-year livelihoods programme to investors. Beyond risk externalisation, the DIB also provides high value-for-money for the donors. |
| (Source ID's) | source1 |
| Key challenges to launch - (Value) | Raising the necessary outcome funding commitments. |
| (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) | No |
| Role of the domestic government - No formal role - (Value) | Yes |
| (Source ID's) | source1 |
| Service providers identified and selected - Request-for-proposals - (Value) | Yes |
| Service providers identified and selected - Direct contracting by outcome funder/investor/intermediary - (Value) | No |
| Service providers identified and selected - Provider-led deal development - (Value) | No |
| Service providers identified and selected - Other - (Value) | Service provider was selected out of a shortlist of providers short-listed during feasability study. Final candidate selected following a stringent due diligence process. |
| (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) | No |
| (Source ID's) | source1 |
| Technical assistance grant - Technical assistance grant - (Value) | Yes |
| Technical assistance grant - Details - (Value) | The feasability study was funded by Convergence. The structuring phase was funded by Convergence and IKEA Foundation. |
| Technical assistance grant - (Source ID's) | source1 |
| Overall project finance - Estimated Maximum potential outcome payment - Currency - (Value) | USD |
| Overall project finance - Estimated Maximum potential outcome payment - Amount - (Value) | 8800000 |
| Overall project finance - (Source ID's) | source1 |
| Purpose and classifications - Social/Developmental challenge - (Value) | Worldwide, conflict and climate crises are forcing more people than ever from their homes, with displacement and its impacts lasting years beyond the crisis. The Syrian conflict has driven 6.6 million people to flee Syria with 80% settling in neighbouring countries. This puts a strain on local economies and infrastructure as well as leaves refugees and their host communities struggling to access safe and dignified work, basic services, and affordable housing. |
| Purpose and classifications - Expected intervention model - (Value) | Near East Foundation will implement a micro-enterprise, vocational trainings and grants programme. The programme will support 3,000 refugees and Lebanese through business development and resiliance-building trainings. The majority of these will also receive start-up grants and coaching sessions to support the launch of their micro enterprise. |
| Purpose and classifications - Policy sector - Employment and private sector development - (Value) | Yes |
| Purpose and classifications - Policy sector - Education - (Value) | Yes |
| Purpose and classifications - Policy sector - Social protection - (Value) | Yes |
| Purpose and classifications - Policy sector - Criminal justice - (Value) | No |
| Purpose and classifications - Policy sector - Health - (Value) | No |
| 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) | No |
| Purpose and classifications - Policy sector - Energy - (Value) | No |
| Purpose and classifications - Policy sector - Humanitarian - (Value) | Yes |
| Purpose and classifications - Policy sector - Other - (Value) | Livelihood programs in humanitarian contexts |
| Purpose and classifications - Secondary SDG goals - (Value) | 1, 4, 5, 8, 10, 17 |
| Purpose and classifications - (Source ID's) | source1 |
| Service users and beneficiaries - Target population - (Value) | Vulnerable refugees and host communities (75% women and 30% youth) |
| Service users and beneficiaries - Targeted number of unique service users or beneficiaries (total) - (Value) | 3000 |
| 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) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Upper-middle-income - (Value) | Yes |
| 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) | Lebanon |
| Delivery Locations 1: Location - Country - (Value) | LB |
| Delivery Locations 1: Lat/Lng - Lat - (Value) | 33.8547 |
| Delivery Locations 1: Lat/Lng - Lng - (Value) | 35.8623 |
| Sources 1: Id | source1 |
| Sources 1: Name - (Value) | Data shared by key stakeholders of the project through March 2022 Levoca questionnaire |
| Service Provisions 1: Notes | Evaluator - TBD (1st Tranche Mathematica) |
| Service Provisions 2: Notes | KOIS (structuring) |
| Service Provisions 3: Notes | Social Impact (Evaluation Design) |
| Outcome Payment Commitments 1: Notes | TBD (1st tranche: IKEA Foundation, Norad and Novo Nordisk Foundation) |
| Investments 1: Notes | U.S. International Development Finance Corporation (DFC), TBD (1st tranche: DFC and Ferd) |
| Intermediary services 1: Organisation Role Category - (Value) | Other |
| Intermediary services 1: Notes | Evaluator - TBD (1st tranche: Mathematica) |
| Intermediary services 2: Organisation Role Category - (Value) | Other |
| Intermediary services 2: Notes | Other - KOIS (structuring), Social Impact (Evaluation Design) |
| Outcome Metrics 1: Outcome Definition - (Value) | Number of business (or job) survival rate after 10 months, Increase in household spending levels on basic needs (as a proxy for household welfare) |
| Outcome Metrics 1: Outcome validation Method - (Value) | Quasi-experimental, Experimental |
| Outcome Metrics 1: Notes | Metric 1: Non-experimental (absolute targets set in comparison to a historical baseline) Metric 2: Quasi-experimental (statistical matching between pre-tested and treated cohorts) |