WATER-ENERGY FRAMEWORK LOAN MALAWI

Promoter – Financial Intermediary

CENTRAL REGION WATER BOARD,LILONGWE WATER BOARD,NORTHERN REGION WATER BOARD,SOUTHERN REGION WATER BOARD

Location

• Malawi

Description

The Framework Loan (FL) will support the Malawi Water sector, including, amongst others, renewable energy facilities. In particular, the FL will allow 4 of the 5 Malawian Regional Waterboards to further improve: (i) Access-to-water in low-income areas (ii) Improve operational efficiency (iii) Reduce greenhouse gas emissions (iv) Increase drought resilience The planned investments in all 4 waterboards will finance: 1. Energy efficient (water) pumps coupled to renewable energy sources (mainly photovoltaic plants) 2. Increase of water storage capacities 3. Water distribution systems including water kiosks and house connections in low-income areas 4. Targeted investments to improve operational efficiency, e.g., SCADA systems, improved meter reading capabilities 5. Organisational development- and improvements regarding transparency of the water boards.

Objectives

The project is a strategic investment for the government of Malawi and a key priority in the Government's plan to tackle high poverty levels, raising inequalities and improving health. It is also is in line with Sustainable Development Goal #6 (which calls for ensuring availability and sustainable management of water and sanitation for all).

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 96 million

Total cost (Approximate amount)

EUR 192 million

Environmental aspects

Environmental and Social Assessments will be carried out as part of the preparatory activities for some of the investments requiring such analysis. Resettlement Action Plan will be carried out as needed. The project shall have positive environmental and public health impacts and will allow the population to improve its access to potable water. The EIB will verify the environmental and social aspects and impacts of the project components, as well as proposed mitigation and compensation measures, in accordance with EIB's Environmental and Social standards. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate adaptation and sustainable use and protection of water and marine resources.

Procurement

The promoter has to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Approved - 9/07/2024