Call for Proposals: Aquacerta Challenge – Boosting Water Sector Innovation

Source of Innovation is an alliance of the IDB Group with external partners to promote the development and adoption of innovative solutions in the water, sanitation, and solid waste sectors to achieve smart, inclusive, and sustainable services, with a focus on service providers in Latin America and the Caribbean. Source of Innovation is funded by the Government of Switzerland, through its Secretariat of State for Economic Affairs (SECO), by the FEMSA Foundation, by the Republic of Korea, through its Ministry of the Environment, by The Coca-Cola Foundation, the Government of Spain, through its Ministry of Economy, Trade and Business (MINECO), and by the Government of Israel, through its Ministry of Finance. The alliance is also complemented by direct contributions from IDB Lab and the Water and Sanitation Division of the IDB, and coordinates directly with the Aquafund, the fund created with IDB capital and to which a wide range of public and private sector partners contribute.

Objectives

• This challenge will focus on strengthening the supply of sectoral innovation from the region by
  • identifying and supporting innovative solutions and products developed by the private sector and
  • promoting the development of the innovation ecosystem with special attention on those actor focusing on the water sector.

Focus Areas

• Energy efficiency for the water and sanitation sector
• Non-revenue water
• Water quality
• Management of systems related to water and sanitation services (incl. services management, information management, and interaction with users)
• Environmental sustainability and resilience of services (incl. water availability for drinking water, quality of water bodies, planning, etc.)

Funding Information

• Applicants can present their applications and apply for contingent recovery financing (that means that the financing is reimbursable upon meeting certain requirements) from US $300,000, to a maximum of US $500,000 each.
• Applicants should be able to contribute at least 50% in counterpart funds for project budget (IDB 50% + Applicant 50% = 100% Total project cost). At least 50% of the counterpart should be cash.
• After a due diligence process, IDB Lab may propose a different financial instrument from the one offered through this challenge.

Eligibility Criteria

• Legally established entities from the private sector such as startups, Small and Medium Enterprises (SMEs), Social Business (i.e.: B corporations) eligible to receive financing from the Bank.
• If your entity is legally registered in one of the 26 target countries where the project will be implemented, you can apply to the Challenge.
• If your entity is legally registered in one of the 48 members countries of the IDB Group, other than one of the 26 target countries where the project will be implemented, you may apply only in partnership with an organization registered and located in one of the 26 target countries where the project will be implemented.

Timeframe

• Upon eligibility, design, and final approval by IDB Lab: 3-6 months.
  Implementation period: between 12 and 30 months from signing the legal agreement.
• The business model supported with the funding must achieve its objectives during this period.
• Repayment term: terms will be negotiated on a case-by-case basis, but in general will never exceed 5 years from the date of completion of implementation.

For more information, visit IDB.