SOMALIA: Somaliland Component 1 of the Financing Universal Access to Water Supply and Sanitation

PPIAFs TA was to Hargeisa Water Agency which is a state owned enterprise providing water services to over 200,000 people in Hargeisa, the capital of Somaliland. The support involved shaping the agency's commercial finance strategy by  assessing HWA’s borrowing capacity and evaluating  possible commercial financing strategies. Following a series of studies and financial analyses, the following have been identified as prospects for commercial financing.

Investment I: Reducing energy costs with solar power through a vendor financed PPA

Investment II: Optimizing existing pump and generator operations

Investment III: Leveraging the new pipeline to produce and distribute more water. This can only be implemented after the completion of the ongoing HUWSUP which is  expected to almost triple transmission capacity from the wellfields in Geed Deeble, Hora Haadley and Las Duur into Hargeisa City. This option would also require commercial financing to develop the additional boreholes

Investment IV:Commercial financing to support repurposing the existing pipeline to build a dedicated tanker filling station

Investment V: Reducing non-revenue water