Project: UNHCR’s Poverty Graduation Impact Bond in Colombia
State of development: Current
Stage of development: Late stage
Type of instrument — Impact Bond: Yes; Outcomes Fund: No; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: No; Other: 
Part of a larger outcomes-based financing program: No 
Expected launch date: Q2 - 2023
Total expected project development time: 6-12 months
Expected length of project (years): 6.5
Project design process began: Q4-2021
Rationale for using outcome-based finance: •        A need to leverage an evidence-based approach that is focused on outcomes delivered
•        An opportunity to leverage UNHCR Graduation Model experience
•        An opportunity for innovations to tailor the effectiveness of the delivery of the Graduation Approach to the needs of displaced populations 
•        An opportunity to leverage a developed country ecosystem with development stakeholders and private sector who are willing to share risks 
•        An opportunity to leverage country leadership and experience with impact bonds, including previous successful impact bond issuances and desire to issue more, as well as progressive government policies, such as Temporary Protection Status that creates opportunities for inclusion.
Key challenges to launch: Instrument design is currently ongoing during national elections and change of government (first round voting May 29, 022). This may delay / affect commitments. 
Role of the domestic government — Outcomes funder: Yes; Service provider: No; Member of project committee: Yes; No formal role: No; Other: 
Service providers identified and selected — Request-for-proposals: Yes; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: No; Other: TBD through request for proposals
Feasibility study: No
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: No; Other: 
Technical assistance grant: Yes — 
Estimated maximum potential outcome payment: 40000000 USD
Overall project finance notes: TBD: perhaps between USD 10-40 million
Social/developmental challenge: To deploy the first large-scale Graduation Approach program focused on refugees which aims for the highest graduation rate achieved so far for this population.
Expected intervention model: Led by UNHCR, service providers will implement a Graduation Approach program that includes as minimum components: basic needs assistance, income generation for self-employment and job employment tracks, financial support and savings, and integration/psychosocial support/social empowerment. 
Policy sectors — Employment and private sector development: No; Education: No; Social protection: Yes; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: No; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: ; Other: Poverty alleviation
Secondary SDG goals: 1
Target population: Venezuelan migrants/refugees, internally displaced Colombian, and host community living in extreme poverty
Targeted number of unique service users or beneficiaries: 10,000 - 15,000
Unit type of targeted beneficiaries: Individual
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: No; Upper-middle-income: Yes; High-income: No
Beneficiary notes: TBD: approx. 10,000 households (50% Venezuelans and 50% Colombians)
Notes: Data for this pipeline project was last updated in April 2022.
Delivery location: Colombia