FINANCING INVESTMENT IN WATERIs your community or company a water serv - PDF document

1 FINANCING INVESTMENT IN WATERIs your com
FINANCING INVESTMENT IN WATERIs your community or company a water service provider?K-Rep Bank can help you realise your dreams Financing investment in water K-Rep Bank Financing investment in waterThis Handbook is a complete informa�on guide to K-Rep Bank’s micro�nance for water programme, an innova�ve �nance product for the water sector. ACRONYMSCommunity Water ProjectNa�onal Environment Management AuthoritySupport Organisa�onWater Resources Management AuthorityWSBWater Service BoardWSPWater Service ProviderWSTFWater Services Trust Fund K-Rep Bank’s vision is to be the �nancial partner of choice for the majority of Kenyans.K-Rep Bank’s mission is to provide excep�onal �nancial services that create value and enrich the lives of its customers, shareholders, employees and the community.Core ValuesThe Bank is guided by the following values, which embody its stand, belief and commi�ment:hard work & team work honesty & integrity respect, learning & re�ec�on crea�vity & innova�on equal opportunity employer modesty and fair play OverviewK-Rep Bank’s Maji ni Maisha programme provides loans for water infrastructure to communi�es where consumers are willing to pay for clean and safe water. Investments �nanced under the programme can include: development or rehabilita�on of small piped water systems; development of water sources such as boreholes, springs or rivers; construc�on of water puri�ca�on and storage facili�es; and installa�on of metering, billing, technical and �nancial management systems to improve the e�ciency of water supply services. Box 1 highlights the key features of the loan programme. Box 1: KEY FEATURES OF A LOANFrom KES 5 million to KES 10 millionFinances up to 80% of project costCash equity investment by the community of 20% of total project costMaximum grace period of 1 year for construc�on. In the case of new projects, interest may be capitalised during the grace periodInterest charged at market rates, currently between 16% and 18% p.a.One �me loan appraisal fee of 1.5% payable on disbursement of fundsMaximum loan tenor: 1 year grace + 5 year term loanInfrastructure subsidy of 40% available for successful projects Financing investment in water Financing investment in water K-Rep Bank The minimum eligibility criteria for a community to be considered for �nancing under the programme are listed in Box 2.An applicant that meets the eligibility criteria will q

2 ualify for a project development grant o
ualify for a project development grant of USD 9,000 to meet part of the costs of developing a bankable project proposal. Projects that are then �nanced by K-Rep Bank will be awarded a project implementa�on grant of up to USD 12,600 to pay for consultancy services to oversee project construc�on and set up post-implementa�on management systems.Key Implemen�ng Organisa�ons & Contractual Rela�onships Under The ProgrammeFigure 1 below shows the contractual rela�onships between the key implemen�ng organisa�ons under the programme. The role of each organisa�on is explained in Box 3. Contractual rela�onships under the programme Box 2: MINIMUM ELIGIBILITY CRITERIACommunity is registered as a Self Help Group with the Ministry of Culture & Social Services and has applied for or a�ained legal registra�on as a Community Water Project (CWP) under the Socie�es Act, the Companies Act or the Trustees (Perpetual Succession) Act Proposed project is situated in KenyaWater Service Board has indicated its willingness to provide the CWP with a Service Provision AgreementThere is no other Water Service Provider opera�ng in the proposed project areaCommunity has deposited KES 150,000 into its account with K-Rep Bank to pay for the appraisal of its Expression of Demand and part fees for developing its project proposal Financing investment in water K-Rep Bank Loan Applica�on & Disbursement Process Process of ac�vi�es under the programme Box 3: KEY IMPLEMENTING ORGANISATIONS• CommunityWaterA Water Service Provider legally registered under the Socie�es Act, the Companies Act or the Trustees (Perpetual Succession) Act that has been granted a Service Provision Agreement from the Water Service Board responsible for the area where it is situated• WaterService Issues CWP with a Service Provision Agreement that permits it to supply water within a demarcated area, and monitors and enforces the terms and condi�ons of the agreement. There are 8 regional water service boards in Kenya: Athi, Tana, Tanathi, Ri� Valley, Lake Victoria North, Lake Victoria South, Northern and Coast (see map on page 20)• WaterResourcesManagementIssues CWP with a permit to abstract a maximum volume of water per day from its chosen source• Na�onalEnvironmentManagement Gives environmental approval, monitors compliance with environmental regula�on, and issues cer��cate of environmental clearance on comple�on of project implementa&#x

3 00740069;on• WaterServicesTrustFund: G
00740069;on• WaterServicesTrustFund: Government of Kenya agency that vets Expressions of Demand and monitors the Project Development Facility• K-Rep The �nancier that will provide upfront construc�on �nance to quali�ed applicants following its due diligence process, and principal banker for the CWP during the term of the loan• World Interna�onal development partner that provides grants and subsidies under the programme• Support Provides consultancy services to the CWP throughout the project cycle• ProjectConsultant: Veri�es the achievement of output targets by the CWP and recommends release of the infrastructure subsidy• Construc�onContractor: Contracted by the CWP to carry out construc�on works on the project (there may either be one contractor employed to manage the en�re project or mul�ple contractors employed to carry out di�erent tasks)• Operator: Employed by the CWP in the post-implementa�on phase to run the project on a management contract for the term of the K-Rep Bank loan Financing investment in water K-Rep Bank Details of the steps to be carried out under each ac�vity listed in Figure 2 are presented below.Expression of Demand 1.1The Expression of Demand is an opportunity for the CWP to make its case to K-Rep Bank that, with project development support, it would be able to present a bankable loan applica�on for �nancing. Hence, the Expression of Demand must demonstrate that:There is genuine demand for paid water The CWP has developed es�mates of infrastructure and �nance requirements, and is prepared to put in a minimum cash equity contribu�on of 20% of project costThe proposed water resource is su�cient to supply expected demand for at least six yearsThe CWP is willing to develop a feasibility study and business plan to de�ne the technical, �nancial and management aspects of the proposed project 1.2Documenta�ontoA complete Expression of Demand shall consist of:Completed Expression of Demand FormPre-project Feasibility ReportProof of registra�on with the Ministry of Culture and Social Services as a Self Help Project that is en�tled to provide water related servicesProof of registra�on status under the Socie�es Act, the Companies Act or the Trustees (Perpetual Succession) Act, or evidence that applica�on for registra�on has been Statement of intent by the Water Service Board to provide the CWP with a Service Provision AgreementAudited accoun

4 ts for the last 2 years (if available)Ba
ts for the last 2 years (if available)Bank statements and electricity bills for the last 6 monthsMinutes of last Annual General Mee�ng and last 6 commi�ee mee�ngsEvidence of asset ownership DepositrequirementfeeFor an Expression of Demand applica�on to be accepted, the CWP must have opened a project account with K-Rep Bank and deposited a minimum of KES 150,000 into the account.This account will be an interest bearing cash collateral account. A non-refundable fee of KES 15,000 is payable to K-Rep Bank for appraisal of the Expression of Demand and will be debited from the Applicant’s account on acceptance of a complete Expression of Demand applica�on. 1.4EndThe ac�vity ends when the Applicant submits its Expression of Demand and suppor�ng documents to any K-Rep Bank branch (see page 21 for list of K-Rep Bank branches), and receives an acknowledgement of receipt of complete Expression of Demand.K-Rep Screening Process 2.1 PurposeK-Rep Bank will screen the Expression of Demand in order to iden�fy projects that are viable and have a reasonable chance of submi�ng a successful loan applica�on. 2.2 MethodThe screening process consists of a desk review and a �eld review:Desk Review K-Rep Bank will study all documenta�on submi�ed as part of the Expression of Demand, which will result in one of two possible outcomes: If the Expression of Demand is incomplete or inadequate it will be returned to the Applicant with a request to compile addi�onal informa�on or documenta�on If the Expression of Demand is su�cient, it will be carried forwarded to the Field Review Stage Financing investment in water K-Rep Bank ii) FieldReview K-Rep Bank will visit the project to ascertain its viability from a technical, �nancial and legal perspec�ve. If the Expression of Demand is considered to be viable, it will be forwarded to the Water Services Trust Fund with a recommenda�on that the Applicant be awarded a project development grant on the basis of its Expression of Demand. 2.3EndThe screening ac�vity ends when K-Rep Bank responds to the Applicant in wri�ng with one of two possible outcomes: The Expression of Demand is accepted and the Applicant is awarded a project development grant to develop a formal loan applica�on A wri�en explana�on is provided to the Applicant that the Expression of Demand is not su�cient to merit the investment of a project development grant and the applica�

5 on cannot be taken furtherLoan Applica&#
on cannot be taken furtherLoan Applica�on 3.1The loan applica�on will determine whether K-Rep Bank can �nance the project and must therefore be presented as a bankable project proposal. The Support Organisa�on (SO) will play the lead consul�ng role during this ac�vity, and together with the Applicant, will prepare all necessary documenta�on for the project to be considered for a 3.2Organisa�onThe Applicant is required to contract an SO to help it develop a bankable loan applica�on. K-Rep Bank has a list of registered SOs that are quali�ed to provide consultancy services to CWPs. The following support is provided to the Applicant to iden�fy a suitable SO through a compe��ve arrangement:K-Rep Bank provides the Applicant with the list and contact details of all registered SOsK-Rep Bank provides the Applicant with SO background informa�on, performance related informa�on, and any workload commitments that might a�ect the Applicant’s K-Rep Bank no��es all SOs of the Applicant’s contact details and summary informa�on to give SOs an opportunity to market their services to the ApplicantThe selec�on of the SO is the responsibility of the Applicant. The Applicant indicates its choice of SO to K-Rep Bank who facilitates the �nalisa�on of the CWP-SO Proposal Prepara�on Contract, to which K-Rep Bank is counterparty. 3.3RoledevelopmentFollowing is a list of tasks to be conducted by the SO during the project development phase:Prepare a comprehensive loan applica�on for submission to K-Rep BankPrepare a detailed Feasibility Study that includes an analysis of demand for paid water, water source informa�on, engineering design, detailed drawings, schedules, and costed Bills of Quan��esDevelop a Business Plan for the Project that includes investment requirements, recommended tari� structure, coverage targets and �nancial projec�onsHydrological or hydro-geological studies, topographical surveys and any other site inves�ga�ons that may be requiredProcess a water abstrac�on permit applica�on with the Water Resource Management Develop and process an applica�on for a Service Provision Agreement with the Water Service BoardPrepare a Project Report to be lodged with NEMA and follow up to obtain environmental clearancePursue legal registra�on of the CWP 3.4ContractbetweenforThe CWP is required to enter in

6 to a formal contract with its chosen SO,
to a formal contract with its chosen SO, to which K-Rep Bankis counterparty. While it is desirable for the CWP to contract the SO from the onset of theproject development phase, it is recognised that many CWPs are not registered as legalen��es and so cannot enter into legally binding contracts. In such cases, K-Rep Bank mayengage the SO on behalf of the CWP. The Applicant shall be charged a fee of KES 35,000 tomeet the costs of procuring and contrac�ng an SO from the ini�al KES 150,000 deposited inits cash collateral account. 3.5 PaymentfeesThe Applicant shall pay the SO the balance sum of KES 100,000 as a mobilisa�on fee on signing the contract to develop a project proposal (secured by a performance guarantee Financing investment in water K-Rep Bank issued by SO’s bankers). The Applicant then applies to the Water Services Trust fund for a grant of USD 9,000 to meet the remaining costs of contrac�ng the SO to develop the loan applica�on on behalf of the CWP. Any project development costs in excess of USD 9,000 are to be met by the CWP. Any unu�lised funds from the project development grant will go towards paying part of the operator’s fees to manage the project in its post-implementa�on Payments to the SO will be made as percentages of the contract value, as follows: 25% on acceptance by the CWP of the project concept and outline project proposal; 35% on submission of complete loan applica�on to K-Rep Bank; 40% on approval of the loan applica�on by K-Rep Bank. An approved loan applica�on is one which K-Rep Bank has agreed to �nance by making a loan o�er to the CWP.Contentapplica�onThe loan applica�on is a compila�on of documenta�on that has been developed for the project and includes:Covering le�erLegal documenta�on: Registra�on Cer��cate Bylaws if registered as a Society, Memorandum and Ar�cles of Associa�on if registered as a Company, and Trust Deed if registered as a TrustGovernance details: Par�culars of members in the case of a Society, directors in the case of a Company or Trustees in the case of a Trust Minutes of the last 6 commi�ee mee�ngs, which should indicate that the CWP has clear inten�ons of taking a loan to �nance the development of a water project Minutes of the last 2 Annual General Mee�ngsWater resource assessment reports and Water Extrac�on Permit detailsLe�er of approval from NE

7 MAService Provision Agreement issued by
MAService Provision Agreement issued by the Water Service BoardFeasibility Study: Analysis of water demand and supply Engineering Design Report Costed Bills of Quan��es Project design drawings Equipment speci�ca�onsFinancial Details: Bank statements for the last 6 months Audited �nancial statements for the last 2 years List of assets owned with suppor�ng evidence Electricity bills the last 6 months Service and coverage targets Proposed tari� structure Projected cash �ow, pro�t and loss and balance sheet Post implementa�on opera�ng plan including details about billing, �nancial management, plant opera�on, technical maintenance, human resource requirements, management contrac�ng and organisa�onal structureEndThe ac�vity ends when the Applicant submits a complete loan applica�on to any K-Rep Bank branch (see page 21 for list of K-Rep Bank branches).Appraisal of loan applica�onThis ac�vity provides K-Rep Bank with an opportunity to analyse the project’s feasibility, carry out due diligence, and do a risk assessment of the CWP. The analysis will be based on the loan applica�on documents and �eld visits to con�rm the suitability of the Applicant and proposed project for �nancing. EndThe ac�vity ends with K-Rep Bank’s approval or rejec�on of the loan applica�on. If K-Rep Bank approves the loan applica�on, it will provide the Applicant with a Condi�onal Loan O�er that indicates the following:Size of loan being o�eredNumber of tranches under the loan and condi�ons for disbursementInterest rateLoan feesRepayment termsCollateral and other security requirementsFinalisa�on of any condi�ons that must be ful�lled prior to the loan agreement being The Applicant can accept, reject or nego�ate the Condi�onal Loan O�er. Financing investment in water K-Rep Bank Loan perfec�onOnce the Condi�onal Loan O�er has been accepted by the Applicant, the objec�ve of this ac�vity is to �nalise the loan and subsidy agreement between K-Rep Bank and the CWP to facilitate the disbursement of funds.Essen�alRequirementsA minimum of 20% of project cost must be deposited into the CWP’s project account with K-Rep Bank as equity commi�ed to meet project capital costs The Bank’s security requirements m

8 ust be put in place as per the indica&#x
ust be put in place as per the indica�ve Term Sheet on page 18 Once both these condi�ons are met, K-Rep Bank will commission a baseline survey of the CWP. BaselinesurveyThe Project Audit Consultant shall conduct a baseline survey of the project to establish the output targets to be achieved by the CWP on comple�on. The output targets are de�ned as follows:Change in the service coverage – The number of water service connec�ons to be installed by the project on comple�onChange in revenues collected – The average monthly revenue to be realised by the project on comple�on (includes revenue from billed water sales, meter charges, new connec�ons and other fees)The extent to which these output targets are achieved will determine the amount of subsidy to be paid to the CWP on comple�on of project implementa�on. HireforImplementa�onThe CWP is required to hire an SO to provide it with consultancy services during the project implementa�on phase. It is desirable that the SO recruited for the project implementa�on phase is the same as that used during the proposal development phase in order to provide con�nuity of support. The selec�on of the SO is the responsibility of the CWP. 5.5Roleimplementa�onFollowing is a list of tasks to be conducted by the SO during the project implementa�on Procurement of a construc�on contractor and/or suppliers, including prepara�on of Terms of Reference and material orders, and ensuring compliance with compe��ve procurement prac�cesPrepara�on and nego�a�on of contracts with contractors and suppliersWork scheduling where CWP provides local labour inputAc�ng as the Project Manager during the construc�on phase, which includes: Site documenta�on Managing the construc�on contract on behalf of the CWP Site supervision and coordina�ng site mee�ngs Checking quality and quan��es of materials used in construc�on Checking quality of workmanship Preparing monthly progress reports to be submi�ed to the CWP and K-Rep Bank Cer�fying payment cer��cates to enable release of funds to contractor(s) and/or suppliersComplete “as built” design drawings for the projectFacilitate veri�ca�on of project output targets and release of the infrastructure subsidyE�ect the post-implementa�on Project Manage

9 ment Plan, develop a monitoringrepor�
ment Plan, develop a monitoringrepor�ng framework to evaluate project performance, and train the community to evaluate system func�onality on the basis of project performance reports 5.6PaymentA grant of up to USD 12,600 to meet the costs of the SO for project implementa�on and to cover ini�al operator fees during post-implementa�on is made available to successful applicants. Any project implementa�on consultancy costs in excess of USD 12,600 are to be met by the CWP. Payments to the SO will be made as percentages of total contract value, as follows: 10% mobilisa�on fee on signing; 40% for construc�on supervision paid as a propor�on of the value of works completed; 25% a�er successful output veri�ca�on paid as a propor�on of the extent to which output targets are achieved; 25% on sa�sfactory comple�on of the ac�vi�es listed in the Terms of Reference, including se�ng up of an approved post-implementa�on management system. 5.7EndThe ac�vity ends with the signing of the contract between the CWP and SO for project implementa�on and disbursement of funds by K-Rep Bank to the CWP as per the terms of the loan agreement. Financing investment in water K-Rep Bank Project construc�on 6.1Construc�onOp�onsThere are a number of arrangements by which the CWP can undertake project construc�on, which include:Hire of a general contractor who engages sub-contractors for specialised worksHire of individual contractors for separate components of the projectHire of a labour contractor who provides all or just skilled labourCWP func�ons as the contractor, undertaking direct hire of each skilled workman, provides manual labour, hires equipment, procures all materials, and only hires contractors for very specialised work such as borehole drilling and installa�on of pumps 6.2 ProcurementproceduresProcurement of a construc�on contractor to carry out the works should be done through a tendering process in compliance with compe��ve procurement prac�ces. The purpose of this is to iden�fy a competent and reputable contractor who prices for the works compe��vely and has the capacity and ability to complete the works within theagreed �me frame. Building materials must also be procured compe��vely and should be purchased a�er conduc�ng su�cient market research to e

10 nsure value for money. 6.3Construc
nsure value for money. 6.3Construc�onMonitoringThe SO is expected to provide construc�on supervision in order to cer�fy the quality of materials and workmanship, and to ensure that the Work Plan is adhered to. The SO is required to prepare monthly progress and �nancial reports for submission to the CWP and K-Rep Bank. 6.4PaymentstocontractorsPayments to the contractor(s) and/or supplier(s) will be on the basis of cer��cates of payment approved by the CWP and the SO. All payments are to be made to the contractor(s) and/or suppliers directly by K-Rep Bank with the approval of the CWP. 6.5EndThe ac�vity ends with cer��ca�on by the SO that project construc�on has been completed to the standard set out in the project development proposal.Management ContractThe purpose of the Management Contract is to delegate the running of the project to a specialised Operator with exper�se in the management of community water projects.ProcedureOn comple�on of project construc�on, the CWP is required to contract the services of an Operator to manage the project in its post implementa�on phase. The CWP will award a Management Contract to the Operator for a period that at least covers full repayment of the loan extended to it by K-Rep Bank. The selec�on of the Operator is the responsibility of the CWP, and may be done in one of two ways:The SO employed during the project development and implementa�on phase may be appointed as the OperatorThe CWP may award a Management Contract through a compe��ve tender process to another Operator approved by K-Rep BankServicestoprovidedbyOperatorThe terms of the Management Contract focus on the provision of the following services to Opera�on of the water supply systemProvision of commercial services including billing, �nancial management, accoun�ng and customer serviceProvision of technical and maintenance diagnos�c servicesFinancial analysis, budge�ng and investment planningPaymentstoOperatorThe Operator will be paid from funds generated by the project (although any surpluses from project development and implementa�on grants may be used to pay the Operator in the ini�al post-implementa�on phase). The amount to be paid to the Operator shall be determined through a compe��ve evalua�on of technically quali�ed Operators. Methods of payment may include:Fixed management feePercentage of revenue generatedIncen�ve payments

11 A combina�on of the above Fin
A combina�on of the above Financing investment in water K-Rep Bank 7.5EndThe ac�vity ends with the signing of the Management Contract between the CWP and the Operator for a period not less than the term of the K-Rep Bank loan.Output veri�ca�on and release of subsidy 8.1The purpose of this ac�vity is to determine the amount of infrastructure subsidy to be awarded to the CWP on comple�on of project implementa�on. The subsidy will be paid to the CWP and credited to its loan account with K-Rep Bank in order to reduce the principal amount of the loan and consequently the CWP’s monthly debt service obliga�on. 8.2veri�ca�onBetween two and six months a�er the end of project implementa�on, the CWP must make an applica�on to K-Rep Bank to verify the achievement of output targets. The Project Audit Consultant will verify the extent to which the CWP has achieved its pre-determined output targets in order to determine the amount of infrastructure subsidy to be awarded.Each project will be given a Total Score and awarded a subsidy according to the following formula:Subsidy = Total eligible project capital cost X Total Score X 40%Where:Total Score = (Coverage weight X Coverage score + Revenue weight X Revenue score)Coverage weight = 0.5Coverage score = Actual number of connec�ons / Target Number of Connec�ons or 1, whichever is lessRevenue weight = 0.5Revenue score = Average Monthly Revenue over previous 2 months / Target Monthly Revenue or 1, whichever is less 8.3EndThe ac�vity ends with the credit of the subsidy to the CWP’s project account with K-Rep Bank and subsequent transfer of the amount credited to the CWP’s loan account.Flow Of Funds Under The ProgrammeFlow of funds under the programme Financing investment in water K-Rep Bank Indica�ve Term SheetThe speci�c terms and condi�ons of a loan will vary on a case by case basis; however, following is an indica�ve term sheet for a loan taken under the programme: CONDITIONBorrowerCommunity Water ProjectsLoan AmountKES 5,000,000 to KES 10,000,000To �nance water related infrastructure projectsMaximum loan amount as a percentage of project costMinimum equity amount as a percentage of project costMaximum loan tenor1 year grace period + 5 year term loanInterest rateAt market rates, currently between base + 3% to 5% (i.e. between 16% K-Rep Bank reserves the right to vary the interest rate on outstanding loans in response to prevailing market condi�ons, subject to compliance with regulatoryrequire

12 mentsPenal interest rates will be charge
mentsPenal interest rates will be charged for delayed installment payments Interest during grace periodPayable monthly in the case of exis�ng projectsMay be capitalised in the case of new projects Basis of charging interest On outstanding loan amount i.e. on a reducing balance basis Loan repayment instalments Due monthly a�er expira�on of the grace period Mode of payment By standing order debit from Borrower’s account with K-Rep (loan repayment) Loan disbursementIn tranches as per condi�onal loan o�erEach tranche of the loan will be released on a pari passu basis with equity from the Borrower’s cash collateral account with K-Rep in the Debt : Equity ra�o 80% : 20%Loan appraisal fee1.5% Mode of payment (appraisal fee)Payable fully on �rst loan disbursementOther TermsCWP to be a registered Self Help Group that has a Service Provision Agreement with a Water Service BoardBorrower to take out appropriate insurance on project assetsContractual savings15% of repayment instalmentPayable in addi�on to each monthly instalment and credited to Borrower’s interest earning cash collateral account with K-Rep BankSecurity for K-Rep BankRegistered charge on �xed assets owned by the Borrower as collateralAssignment of rights to assets/receivables developed with proceeds of the loan and any income/cash �ow generated from these assets un�l loan repayment is complete Nega�ve pledge on assets Debt Service ExampleThe actual amount of monthly debt service payable to K-Rep Bank by the CWP will vary according to: �ming of disbursements, interest rate, loan tenor, whether or not interest is capitalised during the grace period, and amount of subsidy awarded to the CWP. An example of monthly debt service payable for every KES 1 million borrowed under the loan programme is given below. The amount payable has been varied according to the loan tenor and before and a�er the maximum allowable infrastructure subsidy is credited to the CWP’s loan account. 15% contractual savings are payable in addi�on to monthly debt service payments, which will be deposited into a cash collateral account created for the CWP at K-Rep Bank. The amount accumulates in the CWP’s cash collateral account and serves as security for K-Rep Bank in the event of default. In the event that the CWP encounters major maintenance costs during the post-implementa�on phase, it may request that funds be released from this account to meet such costs. The funds on this account earn interest at market rates and can be accessed by the CWP on full repaym

13 ent of the loan.assump�ons E
ent of the loan.assump�ons Equity investment (20% of project infrastructure cost)KESPrincipal loan amountKESCapitalised interest (1 year)KESTotal project cost (including interest capitalised during the grace period)KESMaximum allowable infrastructure subsidy (40% of project cost)KESInterest rateGrace periodYearE�ec�ve annual rate of interestContractual savingsTenor Monthlydebtservice(principalinterest)KESLoan Tenor (years)Amount payable BEFORE infrastructure subsidy is awarded to the CWP -43,224 -35,121 -30,361 Amount payable AFTER infrastructure subsidy is awarded to the CWP -22,319 -18,135 -15,677 MonthlydebtservicecontractualKESLoan Tenor (years)Amount payable BEFORE infrastructure subsidy is credited to the CWP -49,708 -40,389 -34,915 Amount payable AFTER infrastructure subsidy is awarded to the CWP -25,667 -20,856 -18,029 Financing investment in water K-Rep Bank Map Of Regional Water Service Boards Regional Water Service Boards K-Rep BankBranchesApplica�ons under the loan programme may be submi�ed at any of the following branches of K-Rep Bank: BRANCH NAME PHYSICAL ADDRESS POSTAL ADDRESS TELEPHONE NUMBER. O�ce K-RepCentre,WoodAvenue,Nairobi 020-3906000K-RepCentre,WoodAvenue, 020-2395741/2078313KawangwareRoad RirutaoppositeNairobi 020-3871511Kenya�aAvenue StandardKenya�aAvenue Nairobi 020-210705/58/28210749Plaza,Buruburu 020-784518/223/214Kenya�aMarket PhikagoWay Nairobi 020-8007490Avenue Aus�nAvenue Mombasa 041-2221965/38RoadCoast Mtwapa 041-5480348/49/50 nexttoSafaricomLtd Kengeleni KengeleniKongoweaMarket 95753-80106Mombasa 041-470642Countrywide:Kenya�aAvenuenexttoHotel oppositeCentre Nakuru RoadKenya�aAvenueNakuru 15222Nakuru KerichoKuriothighwayKericho 052-21410/9 nexttopetrolsta�onKenyaRe-InsurancePlaza,OgingaOdingaRoad 3558superstoreEldoret Arcade,RonaldStreet Eldoret 053-2062835/60539Kitale Kenya�aAvenueKitale 054-30737AvenueoppositeKCB Bungoma 055-30032Centre,Kenya�aAvenue Nyahururu 065-nexttoTelcomKenya 870NanyukisupermarketNanyuki Road TwinPlaza,Road, Meru 064-31483 oppositesupermarket Embu TunjegeoppositeO�ce 1167Embu PlazaRoad 188highwayWanguru oppositeMericapetrolsta�on KibwezioppositePostO�ce Kibwezi 044-3500056Machakos RoadSyokimauRoad Machakos 044-21982StreetoppositeSyokimausta�on 408KajiadoKajiadoTownship,MarketRoad Kajiado 045-21205ThikaPlazaHarryThukuThika 067-30845 highway Nkubu KarigiplazaoppositeKCBNkubu Nkubuhighway Supported bywww.wsp.or