The Blue Peace Financing Programme promotes access to public and private capital for local and regional non-sovereign entities who manage water resources, such as local governments and River Basin Organizations. It does so by using water as an entry point for multi-stakeholder cooperation frameworks and transforming them into investment platforms through innovative financing instruments, such as Blue Peace Bonds.
The initiative aims at creating a new market in the sustainable finance field that can cover the investment needs of transboundary basins globally, while giving riparian countries a financial incentive for cooperation around those basins, contributing to sustainable development, water cooperation and peace.
The programme applies blended finance structures, which allow the strategic use of public or philanthropic funds to attract private sector investments for water-related projects. These structures combine different types of capital, often including concessional funding (e.g., grants or low-interest loans) and commercial investments (e.g., equity or debt). The aim is to mitigate risks, improve returns, or provide other incentives that encourage private investors to participate in initiatives that might otherwise be seen as too risky or unprofitable. Blue Peace Bonds are an example of a blended finance structure that the initiative is exploring.
Since its inception, the Blue Peace Financing Programme has piloted two major components: one at the regional level with the Gambia River Basin Development Organization (OMVG), and another at the local level with the Freetown City Council (FCC). These pilots have demonstrated the feasibility of innovative financing models for water infrastructure, including the development of master plans, investment pipelines, and gender-inclusive community engagement strategies.
Promoting sustainable growth across borders
UNCDF supported the Organisation pour la Mise en Valeur du fleuve Gambie (OMVG) in creating its first integrated development master plan, a landmark initiative benefiting The Gambia, Guinea-Bissau, Senegal, and Guinea, and positively impacting over six million people. The plan identifies 180 priority projects across sectors such as energy, agriculture, water, sanitation, irrigation, navigation, eco-tourism, and forestry, with a diversified portfolio of approximately USD 2 billion. Developed through an inclusive negotiation process and backed by two years of UNCDF technical assistance, the plan strengthens OMVG’s capacity to mobilize and manage funding for sustainable resource management. In 2024, a Technical Assistance Facility (TAF) was launched with USD 1 million in UNCDF seed funding to support project preparation, while political endorsement for blended finance solutions further positions the region to attract private capital and advance climate resilience.
Transforming water access and empowering women in Freetown
In Freetown, access to safe water is being transformed through the construction of 65 solar-powered water kiosks, directly involving 746 residents and local councilors in site selection. For the first time, all kiosks are managed by women, creating leadership and income opportunities for a trained cohort of 200 women, including 45 leaders, and ultimately serving 65 000 residents. Complementing infrastructure, two innovative financing models for WASH services were developed, combining public, donor, and private funding to ensure sustainability through user fees, community management, and alignment with Freetown City Council policies. Full rollout is anticipated in 2026, setting a model for gender-inclusive, community-driven, and financially sustainable water services.
