Danida Sustainable Infrastructure Finance

Description

1) Objective

Danida Sustainable Infrastructure Finance is a facility that provides access to soft loans and can leverage finance for sustainable and climate relevant infrastructure in developing countries. A DSIF project is part of a country’s national development strategy and will deliver measurable results toward the SDG’s that creates growth and employment in developing countries. DSIF is tied to transfer of technology and knowhow through Danish companies.

Projects in sectors with Danish core competencies – where Danish companies provide goods with life-cycle costs that are internationally competitive – will be prioritized. This means that goods should be competitive based on not only the purchase price, but on total cost, including operating cost (e.g. cost effectiveness of energy and water efficiency). As a rule, only Danish companies can act as main contractor in DSIF projects. Therefore, as a point of departure only projects where Danish companies are internationally competitive will be selected.

2) Eligibility

Official request for support must come from the public authorities in the recipient countries. However, private companies may also present project proposals to the DBF team for initial discussions on eligibility.

3) Location

DSIF is applicable where Denmark has a representation: Africa (Burkina Faso, Egypt, Ethiopia, Ghana, Kenya, Mali, Morocco, Mozambique,  Niger, Nigeria, Somalia, South Sudan, Tanzania, Uganda), Asia (Afghanistan, India, Indonesia, Myanmar, Pakistan, Palestine, Philippines,  Vietnam) and Europe (Ukraine).

4) Budget

Projects should have a minimum size of DKK 100 million ($15,000,000). Upper limit depends on budget available. A typical loan has 10 years’ maturity and is issued in USD or EUR. A grant might also be issued.

5) Application

The first step is a screening of the project proposal. This will produce a preliminary assessment of eligibility and a positive indication to continue project preparations. The proposal shall contain: (1) information about project background; (2) poverty reduction objectives; (3) total project investment incl. detailed budget; (4) type of equipment to be delivered; (5) contract amount to be financed; (6) financial set-up including borrower and guarantor (confirmed by a letter of intent); (7) organisational set-up; and (8) timetable and milestones in the project. This can be sent anytime throughout the year.