KIFFWA invests in the development phase of initiatives with a view to stimulating project development and increasing investment flows into the water sector. Its role is one of a co-developer. Initiatives will therefore be chosen at idea/concept stage. They should be bankable initiatives of scale (at least Euros 2 million in total project cost). The lead developer should be a reputable person or entity with a strong track record of project development / management and be invested / demonstrate skin in the project. The initiative itself should be socially impactful.
Generally, the KIFFWA investment process can be summarised as follows: –
The Quick Scan is a short introduction made by the project proponent on his initiative to allow KIFFWA’s management team to decide whether next steps are opportune.
If the Quick Scan and follow up discussions with the project proponent are positive, KIFFWA and the project proponent enter into an MOU. The MOU sets out the working relationship with the proponent, provides for exclusivity and division of tasks and responsibilities.
This is a detailed description of the technical, legal, financial, Governance, and Environment aspects of the initiative. Its objective is to provide a full and accurate description of the initiative / project and provide a basis for the Investment Committee to decide whether or not the proposed project / initiative meets the KIFFWA investment criteria and if KIFFWA should invest in it.
The Joint Development Agreement is the contractual agreement between KIFFWA and the Lead Developer / Project Proponent. It sets out the roles and responsibilities of the parties / joint developers, the estimated budget, the anticipated project milestones and the exit and recoup mechanisms of KIFFWA. The JDA will generally provide for setting up of a special purpose vehicle owned by KIFFWA and the project proponent to undertake the project.