Project: Results-Based Financing for container-based sanitation services in northern Haiti
State of development: Current
Stage of development: Late stage
Type of instrument — Impact Bond: No; Outcomes Fund: No; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): Yes; Technical Assistance and Market-building program: No; Other: 
Part of a larger outcomes-based financing program: No 
Expected launch date: Q2 - 2023 or later
Total expected project development time: 12-24 months
Expected length of project (years): 4
Project design process began: Q1 2019
Rationale for using outcome-based finance: Scaling SOIL’s market-based approach by reducing costs through economies of scale, creating incentives for cost-efficient operations and proving a mechanism which could later be replicated for public funding of sanitation services in urban Haiti.
Key challenges to launch: (1) Misalignment of objectives between the Haitian government and the potential outcomes funder, due to the latter ‘moving the goalposts’ on program scope and intended outcomes.
(2) Potential outcomes funder sought to impose unrealistic cost recovery targets over a short period of time.
Role of the domestic government — Outcomes funder: No; Service provider: No; Member of project committee: Yes; No formal role: No; Other: 
Service providers identified and selected — Request-for-proposals: No; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: Yes; Other: 
Feasibility study: Yes
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: Yes; Other: 
Technical assistance grant: No — 
Estimated maximum potential outcome payment: 5000000 USD
Overall project finance notes: Estimate of USD 3-5 mn
Social/developmental challenge: In Haiti, only 30% of the population has access to improved sanitation and less than 1% of waste is safely treated. This has fueled one of the most virulent cholera epidemics in recent global history. While aquatic ecosystems become increasingly polluted with nutrients from human waste, the earth’s soil nutrients have been rapidly declining due to erosion and intensive agricultural practices, leading to a loss of biodiversity, extreme vulnerability to climate-related risks, reduced agricultural production, poverty, and malnutrition. As Haitian cities expand, unplanned, at staggering rates, it’s critical that the sanitation sector develops innovative approaches that work in dense urban areas to avoid exacerbating the toll of preventable waterborne diseases.
Expected intervention model: SOIL operates an integrated waste management system, from containment of human waste through safe transportation to treatment. This program focuses on expansion of SOIL’s ‘EkoLakay’ container-based household sanitation service and to safely transport and treat the associated waste
Policy sectors — Employment and private sector development: No; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: No; Water, Sanitation and Hygiene: Yes; Energy: No; Humanitarian: No; Early Childhood Education: ; Other: 
Secondary SDG goals: 6
Target population: Households in urban and peri-urban areas in Haiti’s Grand North region
Targeted number of unique service users or beneficiaries: 3350
Unit type of targeted beneficiaries: Other
Unit description: Households  
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: Yes; Upper-middle-income: No; High-income: No
Beneficiary notes: Approximately 3350 households (approximately 20,000 people)
Notes: Data for this pipeline project was last updated in April 2022. 
Delivery location: Haiti