The Investment Committee for the Origination Facility of the Dutch Fund for Climate and Development (DFCD) approved a grant and SNV technical assistance package for Solar Water Solutions (Kenya) (SWSK) on May 14 2020.
The total estimated Origination Facility is Eur 1,068,832 of which the DFCD is expected to fund Eur 142,500, Climate Funds Managers(CFM) will fund Eur 577,166 and the shareholders of SWS, the parent company will contribute Eur 349,166.
The parent company, Solar Water Solution Oy (SWS) is a Finnish water technology company that designs and manufactures decentralized solar powered water purification systems. The mission is to create sustainable clean water in environments where access to water is scarce or non-existent. The company was founded in 2015 and now employs 10 people. It has a branch in Masdar Eco-City Abu Dhabi: the branch has been a test-centre for water treatment solutions developed for demanding conditions and locations.
The DFCD grant funding is needed to de-risk and prove the concept of innovative solutions with scaling potential for economically sound and climate resilient water supply to rural communities in Kenya. As it is a new concept, this has proven to be a barrier to obtain financing.
Cost of water is extremely high in many parts of Kenya. SWSK will bring solutions that enable transformational change in water pricing: SWSK can bring the cost of water down by half compared to current price of treated water sold in nearby villages.
About the DFCD
SNV has partnered with Climate Fund Managers (CFM), World Wildlife Fund Netherlands (WWF) and FMO, Dutch entrepreneurial development bank (lead organisation) to manage the Dutch Fund for Climate and Development (DFCD), with objective to mobilise private sector investments in climate change adaptation at scale. The DFCD will run until 2030, is funded by Netherlands Ministry for Foreign Affairs and has a total value of €160 million.
To achieve the DFCD mandate the consortium will be structured with three separate but operationally linked ‘Facilities’ each with a unique role across the project lifecycle; each with a unique thematic sub-sector focus:
- The Origination Facility - Led by WWF and SNV
- Land-use Facility - Led by FMO
- Water Facility - Led by CMF
The consortium parties will collaborate through the Origination Facility for deal origination. Subsequently each Facility will make its investment decisions in an independent Investment Committee in accordance with the DFCD Assessment Framework.
To read the full disclosure, please click here.