Pipeline
| ID | INDIGO-PL-0058 |
|---|---|
| Project Name - (Value) | Impact-Linked Fund for Education |
| Contact - Name - (Value) | Lucas Tschan / Kathrin Hassler |
| Contact - Email - (Value) | lucas.tschan@igravity.net |
| State of Development - (Value) | Current |
| State of Development - (Source ID's) | source1 |
| Stage of Development - (Value) | Final negotiations |
| Stage of Development - (Source ID's) | source1 |
| Stage of Development - (Notes) | Phased Launch: Q2 - 2022, Q3 - 2022, Q4 - 2022, Q1 - 2023, Q2 - 2023 or later |
| 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) | Yes |
| 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) | Yes |
| Type of instrument and project - Other - (Value) | Other: Impact-Linked Loans, Impact-Linked Revenue Share Agreements, among other instruments. |
| (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) | Dedicated Fund using SIINC and other Impact-Linked Finance instruments |
| Part of a larger outcomes-based financing program? - (Source ID's) | source1 |
| Dates - Expected Launch Date - (Value) | Q1 - 2022 |
| Dates - Total expected project development time - (Value) | 6-12 months |
| Dates - Expected length of project (years) - (Value) | Open-ended |
| Dates - Project design process began - (Value) | Q1-2021 |
| Dates - (Source ID's) | source1 |
| Rationale for using outcome based finance - (Value) | Correcting market failures (by providing financial incentives for achieving learning outcomes) and enabling high-impact education enterprises to unleash their full impact potential as well as raising investment to scale. |
| (Source ID's) | source1 |
| Key challenges to launch - (Value) | Readiness of enterprises to enter into an Impact-Linked Finance transaction (will be addressed through TA) |
| (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) | Yes |
| (Source ID's) | source1 |
| Feasibility study - (Value) | Yes |
| (Source ID's) | source1 |
| Proposed financing instruments - Debt - (Value) | Yes |
| Proposed financing instruments - Equity - (Value) | Yes |
| Proposed financing instruments - Guarantee - (Value) | Yes |
| Proposed financing instruments - Grant - (Value) | No |
| Proposed financing instruments - Other - (Value) | Financial innovations |
| (Source ID's) | source1 |
| (Notes) | Note: The question is misleading for Impact-Linked Finance. It can be co-investment for SIINC (what we meant here) or our own instruments. Own instruments are SIINC (which is not a grant but a service contract, debt (impact-linked loan) or other financial innovations such as impact-linked revenue share agreements or recoverable grants |
| Technical assistance grant - Technical assistance grant - (Value) | No |
| 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) | 13000000 |
| Overall project finance - (Source ID's) | source1 |
| Overall project finance - (Notes) | USD 13M is the expected total fund size at 2nd closing, 1st closing done (CHF 6M) |
| Purpose and classifications - Social/Developmental challenge - (Value) | According to the UN, over 265 million children globally are currently out of school and 617 million lack minimum proficiency in reading and mathematics. In Sub-Saharan Africa, for example, more than 60% of pupils cannot read or write at the end of primary school. Many innovative education enterprises in developing and emerging economies do not have access to appropriate financing to scale up and create additional impact. Furthermore, these enterprises face a lack of incentives to achieve greater and deeper impact. |
| Purpose and classifications - Expected intervention model - (Value) | High-impact education enterprises provide innovative, sustainable and inclusive solutions in their respective region and field of activity |
| Purpose and classifications - Policy sector - Employment and private sector development - (Value) | No |
| Purpose and classifications - Policy sector - Education - (Value) | Yes |
| 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) | 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) | No |
| Purpose and classifications - Secondary SDG goals - (Value) | 4,5 |
| Purpose and classifications - (Source ID's) | source1 |
| Service users and beneficiaries - Target population - (Value) | Vulnerable, low-income children and youth in (pre-)elementary and secondary school age. |
| Service users and beneficiaries - Targeted number of unique service users or beneficiaries (total) - (Value) | Each case has a specific target population. TBD. |
| 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) | Yes |
| 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) | 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 instrument was last updated in April 2022 |
| Delivery Locations 1: Service Provision ID - (Value) | deliverylocation1 |
| Delivery Locations 1: Location - Name - (Value) | Irak |
| Delivery Locations 1: Location - Country - (Value) | IQ |
| Delivery Locations 2: Service Provision ID - (Value) | deliverylocation3 |
| Delivery Locations 2: Location - Name - (Value) | Sierra Leone |
| Delivery Locations 2: Location - Country - (Value) | SL |
| Delivery Locations 3: Service Provision ID - (Value) | deliverylocation4 |
| Delivery Locations 3: Location - Name - (Value) | Egypt |
| Delivery Locations 3: Location - Country - (Value) | EG |
| Delivery Locations 4: Service Provision ID - (Value) | deliverylocation5 |
| Delivery Locations 4: Location - Name - (Value) | Jordan |
| Delivery Locations 4: Location - Country - (Value) | JO |
| Delivery Locations 5: Service Provision ID - (Value) | deliverylocation6 |
| Delivery Locations 5: Location - Name - (Value) | Lebanon |
| Delivery Locations 5: Location - Country - (Value) | LB |
| Delivery Locations 6: Service Provision ID - (Value) | deliverylocation7 |
| Delivery Locations 6: Location - Name - (Value) | Liberia |
| Delivery Locations 6: Location - Country - (Value) | LR |
| Delivery Locations 7: Service Provision ID - (Value) | deliverylocation8 |
| Delivery Locations 7: Location - Name - (Value) | South Africa |
| Delivery Locations 7: Location - Country - (Value) | ZA |
| Delivery Locations 8: Service Provision ID - (Value) | deliverylocation9 |
| Delivery Locations 8: Location - Name - (Value) | Zambia |
| Delivery Locations 8: Location - Country - (Value) | ZM |
| Service Provisions 1: Notes | Each case specific |
| Outcome Payment Commitments 1: Notes | SDC and Jacobs Foundation |
| Investments 1: Notes | Each case will have specific investors |
| Intermediary services 1: Organisation Role Category - (Value) | Other |
| Intermediary services 1: Notes | Evaluator - Each case will have specific evaluators |
| Intermediary services 2: Organisation Role Category - (Value) | Other |
| Intermediary services 2: Notes | Advisor - iGravity, Roots of Impact |
| Intermediary services 3: Organisation Role Category - (Value) | Other |
| Intermediary services 3: Notes | Other - Impact-Linked Finance Fund |
| Outcome Metrics 1: Outcome Definition - (Value) | Each case specific. Examples: improved learning outcomes, improved school attendance, improved quality of in class teaching , improved teacher satisfaction and retention rates, lower administration costs per learner, increased hours of in-class teaching, improved quality of in-class teaching. |
| Outcome Metrics 1: Outcome validation Method - (Value) | Quasi-experimental, Non-experimental |