Results-Based Finance Expert Consultant (1-month Contract)
Consultancy Services Overview
Water.org is seeking an experienced results-based financing (RBF) expert consultant to complete a pre-feasibility study to develop a concept note for an innovative results-based financing (RBF) transaction in partnership with one of Water.org’s existing utility partners in Brazil.
One in nine people around the world lack access to safe water and one in three people don’t have access to a toilet. We are working every day to change this. We are Water.org. We’re here to bring water and sanitation to the world. We want to make it safe, accessible and cost-effective because we believe that water is the way to empowering a bright future that we can all share in, worldwide. We are an international nonprofit organization based in Kansas City, Missouri that has positively transformed millions of lives around the world through access to safe water and sanitation. Founded by Gary White and Matt Damon, we pioneer market-driven financial solutions to the global water crisis. For 30 years, we’ve been providing women hope, children health and families a future.
Consulting Project Background
Brazil recently passed a New Sanitation Regulatory Legal Framework requiring utilities to provide universal household access to sanitation and water supply by March 2033. Currently, 100MM+ people lack access to safe sanitation and 33MM lack access to treated water in Brazil that disproportionately affect low-income communities. The Ministry of Economy estimates that $128 billion in public and private sector financing is needed to address this growing WASH crisis in Brazil.
Preliminary Water.org market research indicates both the potential and interest exists to develop a result-based financing facility with its existing utility partners focused on one of the following areas:
- Option 1: Connect low-income households to existing sewage networks to improve household sanitary conditions and reduce human waste leaking into the surrounding environment.
- Option 2: Reduce household water leakages to create cost-savings for low-income households, reduce utility greenhouse gas emissions, and increase overall water availability for new water connections.
Current Water.org utility partners in Brazil are challenged convincing low-income households to connect to existing sewage networks despite its clear advantages over alternatives such as septic tanks. In addition, our utility partners experience unnecessary water losses and energy expenditures as a result of unaddressed “after-the-meter” leakages that occur within individual households. Involving utility partners in an innovative transaction will allow them to access the $25 billion results-based financing market to improve low-income household access.
Consulting Project Key Activities
Given this situation, Water.org seeks to engage an experienced results-based financing (RBF) expert consultant to complete a pre-feasibility study to develop a concept note for an innovative results-based financing (RBF) transaction in partnership with one of Water.org’s existing utility partners in Brazil. Key activities to be completed under this assignment include:
1) Review RBF literature and project experience to identify best practices and key lessons learned within WASH and utilities sectors.
2) Interview up to 15 stakeholder interviews with potential key development partners such as the World Bank and priority foundation partners such as the Rockefeller Foundation.
3) Complete a 1-week in-country trip to Brazil to conduct field due diligence on proposed concepts in conjunction with local Water.org staff including:
- Introducing RBF project design concepts to Water.org utility partners
- Conducting key stakeholder interviews with potential RBF project stakeholders including: Water.org utility partners, municipal governments, local offices of key development partners (e.g., World Bank), potential RBF service providers, and potential RBF impact investors
Water.org acknowledges the right of both the Consultant and the organization to postpone or cancel the proposed in-country trip to Brazil due safety concerns associated with the current COVID-19 pandemic. Under such a scenario, both Parties agree to work together to find a mutually beneficial resolution to completing the remaining scope of work including conducting all planned interviews remotely.
Key Project Deliverables
By the end of the assignment, the Consultant will be expected to produce – in coordination with Water.org’s Global Investors Team – the following deliverables:
1) Results-based financing (RBF) Best Practices Report
- Summary of key lessons and best practices lessons from WASH and utility interventions; and
- Framework for evaluating proposed RBF transaction opportunities in Brazil
2) RBF Pre-feasibility study
- Initial analysis of market data to determine feasibility of RBF transactions;
- Summary of key stakeholder interviews to determine interest/feasibility of transactions; and
- Preliminary identification of potential local RBF service providers and impact investors
3) Initial RBF Transaction Concept Note
- High-level transaction project design options
- Detailed next steps for advancing RBF transaction
Water.org expects the work under this contract to commence on or about July 1, 2021 and to be completed by no later than September 30, 2021. The contract should comprise no more than 25 days of the Consultant’s time, including writing and delivery of the final report broken down as following:
- 6 days for Activity 1
- 6 days for Activity 2
- 13 days for Activity 3
- Minimum 20 years experience in development finance, impact investing, or international finance
- At least 3 successful engagements advising development finance institutions, donor agencies, or impact investors on results-based financing or output-based aid (OBA) structures
- Previous experience and/or demonstrated understanding of the water utility sector a plus
- Strong interpersonal skills and demonstrated ability to communicate with a diverse stakeholder groups, including capital markets, government, development finance, and nonprofit stakeholders
Proposal Submission Deadline
Please submit all inquiries and proposals directly to Darren Miao ([email protected]) by June 21, 2021. Any proposals received after this date will not be considered.