Finance & Instruments
With one of the key objectives of the WACA Platform being to mobilize investments for coastal resilience, two strategies are being utilized: (i) bilateral discussions with traditional development partners to mobilize and coordinate concessional and grant financing; and (ii) development of a WACA Marketplace to reach a broader set of financial partners and scale financing, bridging demand and supply.
The WACA Marketplace is a simplified investment mechanism that aims to match the demand for coastal resilience investments with the supply of partner financing. It aims to simplify the process of deal-making and resource mobilization. Gathering countries and potential financial partners in one space and featuring pitches of priority investment needs by the countries, the Marketplace aims to simplify and catalyze the deal-making process. It also aims to assist in identifying opportunities for collaboration and integrating technical innovation through the Platform’s Knowledge pillar and network of knowledge partners. .
There are several Financing Instruments that could be used to finance public and private projects for coastal resilience. These include public private partnerships, project guarantees, and bonds. The choice of instrument depends on whether the investment is revenue-generating or non-revenue generating and needs to be considered before pursuing private orcommercial financing, blended commercial and concessional financing, or blend with public finance.
The Private Sector is keen to be part of the solution for coastal resilience and represents an opportunity to maximize financing for development. WACA seeks to leverage the financing provided by international finance institutions and bilateral donors with private capital. The private sector is also keen to develop standards for their operations that manages any social and environmental impact. The WACA Platform is engaging the private sector to help develop the relationships, tools and mechanisms needed to support their engagement in strengthened coastal resilience for the region.