Proposals Invited For Bankable Water And Sanitation Projects

The African Water Facility (AWF) has launched its 2026 call for proposals (CfP) to identify high-impact, investment-oriented projects and initiatives in the water and sanitation sectors across the continent.

AWF is an initiative of the African Development Bank (AfDB) dedicated to mobilising investment and strengthening water security and sanitation across Africa through project preparation, investment facilitation and sector innovation.

The CfP will enable AWF to strengthen its pipeline of bankable operations and mobilise downstream investments in support of Africa’s water security and sanitation agenda. Emphasis will be placed on projects requiring targeted support to address critical preparation gaps and accelerate progress toward investment readiness and financial close.

AWF invites proposals for project preparation studies that contribute to the development of bankable water and sanitation investments and align with one or more of the following priority areas:

Project preparation for investment readiness:

• Preparation studies linked to clearly identified and prioritised investment projects;

• Advanced projects toward bankability (feasibility studies, detailed design, transaction structuring);

• Last-mile readiness support for projects at advanced stages of preparation;

• Initiatives close to financial or technical maturity that have a high impact and can be rapidly implemented;

• Indicative requirement: minimum 30% downstream financing identified, evidenced through memorandums of understanding (MoUs), letters of intent, or commitments

Mobilisation of finance and catalytic investments:

• Projects with strong potential to catalyse downstream investments (Asian Development Bank (ADB), African Development Fund (ADF), private sector, partners);

• Innovative financing approaches (blended finance, risk-sharing instruments, results-based financing);

• Initiatives supporting SME participation and market development

• Projects demonstrating clear pathways for private sector participation, including public-private partnership (PPP) structuring, service contracts or blended finance models;

• Evidence of market interest, such as expressions of interest, prefeasibility validation or investor engagement;

• Revenue-generating or cost-recovery mechanisms supporting financial sustainability.

Climate-resilient and sustainable systems:

• Projects integrating climate resilience and adaptation measures;

• Application of nature-based solutions (NbS) alongside grey infrastructure;

• Interventions promoting sustainable and climate-smart water and sanitation services.

Governance, institutional strengthening and enabling environment:

• Sector reforms and institutional strengthening to improve the investment environment;

• Strengthening planning, regulatory and coordination frameworks;

• Development of national strategies and master plans, investment programmes, and prioritised pipelines at national, regional, urban or basin level.

Innovation and sector transformation:

• Innovative technical, financial and business models for service delivery;

• Solutions promoting circular economy and resource recovery;

• Decentralised and context-appropriate solutions, especially for secondary cities and underserved areas;

• Pilot initiatives with strong scalability and replication potential.

High-impact and inclusive development outcomes:

• Urban and rural water supply, and water, sanitation and hygiene (WASH), including interventions aligned with citywide inclusive sanitation (CWIS) or faecal sludge management (FSM);

• Sustainable water resources management, including multi-sectoral planning (water-energy-food nexus);

• Climate-resilient solutions and environmental protection, and contributions to gender equality and social inclusion (GESI), economic development and sustainability;

• Regional and transboundary initiatives with high development impact.

Sanitation sector:

• On-site sanitation (FSM, septage management, CWIS)

• Sewerage systems (centralised/hybrid)

• Wastewater treatment and reuse

• Nature-based sanitation solutions

• Urban and peri-urban sanitation service models

• Institutional/regulatory sanitation frameworks.

It must be noted that priority will be given to projects that already benefit from partial preparation support or financing from other sources; clearly identify preparation gaps requiring AWF intervention; demonstrate co-financing commitments or investor interest; and are at advanced stages of preparation and close to investment readiness.

AWF will provide grant financing not exceeding €1 million (US$1.1 million) for each project. This ceiling applies exclusively to the AWF contribution and does not limit the total project cost. Projects with larger financing requirements may be considered, provided they demonstrate credible co-financing arrangements or investment potential.

The eligible activities may include:

• Feasibility studies;

• Detailed engineering designs;

• Environmental and social assessments;

• Transaction advisory services;

• Financial structuring;

• Institutional and regulatory strengthening activities.

The CfP is open to regional member countries and public institutions and implementing agencies in the water and sanitation sectors affiliated with them; regional and transboundary organisations; and other eligible entities in accordance with AWF operational policies and procedures.

The selection process will be conducted through a single-stage competitive application process, with the deadline for submission being 10 September. The proposals will be reviewed on 30 September, followed by the final selection and pipeline integration by 30 October.

All applications must include an official endorsement from the relevant national authority

responsible for the water and sanitation sector. They must also demonstrate consistency with national development plans, sector strategies, investment programmes or masterplans. For regional and transboundary initiatives, evidence of endorsement from participating

countries or regional institutions should be provided where applicable. AWF reserves the right to limit the number of shortlisted proposals per country to ensure strategic coherence.

View the CfP document here.

Photo: Tap water (Source: Facebook @ AWF)