Project: Impact-Linked Fund for WASH
State of development: Current
Stage of development: Final negotiations
Stage notes: Scaling after successful pilot. Pilot: SIINC for WASH Program funding aQysta and KWSH enterprises. Two further SIINC that are close to signing. Phased launched: Q1 - 2023, Q2 - 2023 or later
Type of instrument — Impact Bond: No; Outcomes Fund: Yes; Social Impact Incentives (SIINC): Yes; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: Yes; Other: Impact-ready matching funds. 
Part of a larger outcomes-based financing program: Yes Dedicated Fund using SIINC and other Impact-Linked Finance instruments
Expected launch date: Q2 - 2022
Total expected project development time: 6-12 months
Expected length of project (years): Open-ended
Project design process began: Q1-2020
Rationale for using outcome-based finance: Correcting market failures (by providing financial incentives for achieving social outcomes) and enabling high-impact enterprises to unleash their full impact potential as well as raising investment to scale
Key challenges to launch: Readiness of enterprises to enter into an Impact-Linked Finance transaction (will be addressed through TA)
Role of the domestic government — Outcomes funder: No; Service provider: No; Member of project committee: No; No formal role: Yes; Other: 
Service providers identified and selected — Request-for-proposals: Yes; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: No; Other: 
Feasibility study: No
Proposed financing instruments — Debt: Yes; Equity: Yes; Guarantee: Yes; Grant: No; Other: Other: Financial Innovations (We meant the co-investment).
Technical assistance grant: No — 
Estimated maximum potential outcome payment: 20000000 USD
Overall project finance notes: Each case will have a different size. USD 20M is the estimated total fund size at 3rd closing, 1st phase after successful pilot started.
Social/developmental challenge: Many innovative high-impact enterprises in the WASH sector 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
Expected intervention model: High-impact enterprises provide innovative, sustainable and inclusive solutions in their respective communities
Policy sectors — Employment and private sector development: No; Education: No; Social protection: No; Criminal justice: No; Health: Yes; Agriculture: No; Environment and climate change: Yes; Water, Sanitation and Hygiene: Yes; Energy: No; Humanitarian: No; Early Childhood Education: ; Other: 
Secondary SDG goals: 1,3,5,6,8,10,13
Target population: Low-income populations without access to clean drinking water or good sanitation in the Global South
Targeted number of unique service users or beneficiaries: Each case will have a specific target population. TBD.
Country income classification of beneficiaries — Low-income: Yes; Lower-middle-income: Yes; Upper-middle-income: Yes; High-income: Yes
Beneficiary notes: This fund does not target particular countries yet, and could potentially work with countries of all income levels. 
Notes: Data for this pipeline project was last updated in February 2022
Delivery location: South Asia , Sub-Saharan Africa, East Asia & Pacific