Current WASH service delivery in Jubaland is shaped by persistent affordability, infrastructure and financing constraints, alongside rapid urbanisation, population growth, displacement and recurrent climate shocks. These pressures have increased demand for reliable water and sanitation services while household capacity to absorb the upfront costs of service connections remains constrained. The sector consequently continues to depend substantially on donor financing and private-sector service provision, while investment needs remain significant.

Recent household evidence from Dollow provides a more specific basis for understanding these challenges and for targeting the WASH-FIT intervention.  Water in Dollow is delivered through boreholes, shallow wells, piped distribution networks, communal water points and household connections, with the Dollow Water Management Company operating the local water system under a public-private partnership arrangement. Assessments indicate that piped water already plays an important role in IDP settlements: approximately 40% of surveyed households reported accessing piped water directly in their dwellings and about 42% reported piped water to their plots. However, 40% of surveyed households indicated that available water supply was inadequate to meet their needs, demonstrating that physical network access does not necessarily ensure adequate or reliable service.

Socio-economic vulnerability further strengthens the case for targeted household connection support.

Against this background, a pro-poor household water-connection financing mechanism could help eligible low-income households near the piped network meet upfront connection costs through affordable financing. The intervention would expand formal household connections, improve reliable access to safe water, reduce dependence on communal sources and strengthen the customer base and financial sustainability of the local water utility. At its core, the model will establish a revolving loan facility implemented through a selected Microfinance Institution (MFI), with catalytic financial support from UNICEF and UNCDF. Eligible households will be able to access affordable and flexible financing for household water connections, with repayment arrangements designed to be manageable and, where feasible, integrated into utility billing systems.

The model will operate through close coordination among the MFI, the Dollow Water Management Company, the Ministry of Energy and Water Resources and other relevant partners, ensuring that household financing is directly linked to actual service delivery.  Dollow is an appropriate pilot location because household evidence demonstrates both a continuing gap in piped-water access and the need for solutions that address affordability alongside infrastructure. The model will prioritise low-income and underserved households, for whom the upfront cost of connection may otherwise prevent access to safer and more reliable piped-water services.

Overall, the WASH Social Access Model is intended to demonstrate a practical and scalable approach that combines financial inclusion with sustainable WASH service delivery. By converting catalytic funding into a revolving financing mechanism, recovering repayments and reinvesting them in additional household connections, the initiative seeks to progressively expand access, strengthen the sustainability of service provision and generate evidence on the viability of pro-poor financing for household water connections in Dollow .

The overarching objective of the WASH Financing and Transformation (WASH-FIT) initiative is to test and operationalize the Social Access Model to improve inclusive and sustainable access to safe water and sanitation services for low-income households, including internally displaced persons (IDPs). The Model is being piloted in Dollow District, Jubaland.

Specifically, the Ministry of Energy and Water Resources aims to: 

Pilot a Sustainable Social Access Fund to Expand Inclusive Access to Safe Water Services

●        Establish, through the Ministry of Water and Energy, and in partnership with the Dollow Water Management Company, a selected Microfinance Institution (MFI), and with financial support from UNICEF and UNCDF, a financing mechanism to provide microloans covering household connection costs for piped water.

●        Ensure that these microloans are repaid through affordable monthly charges integrated into household water bills, thereby providing a seamless, accessible, and sustainable repayment mechanism for low-income users.

Expand Pro-Poor Access to Water Services

●        Facilitate access for low-income households, including IDPs, to safe and reliable piped water services that would otherwise remain unaffordable.

●        Leverage blended financing to mobilise donor resources, development partner contributions, and private capital, with a view to expanding the reach and sustainability of service provision.

Establish a Revolving Fund to Scale Impact

●        Reinvest repaid capital to finance additional household connections, thereby progressively expanding service coverage.

●        Demonstrate a scalable and financially sustainable model for pro-poor WASH service delivery in Somalia.

Strengthen Institutional and Operational Capacities

●        Enhance the capacity of the Ministry of Water and Energy, the Dollow  Water Management Company, and the participating MFI to manage financing mechanisms, monitor service delivery, and ensure operational efficiency.

●        Build the technical and administrative systems required to effectively manage a revolving social financing facility for water and sanitation services.

Promote Durable Solutions and Household Resilience

●        Link access to essential WASH services with financial inclusion and broader socio-economic empowerment of households.

●        Contribute to improved well-being, health outcomes, and socio-economic integration of low-income and displaced populations.

Through this approach, the WASH-FIT initiative seeks to demonstrate an innovative, scalable, and sustainable financing model that addresses affordability constraints, strengthens institutional capacity, and promotes equitable access to safe water services for vulnerable populations.

The WASH Social Financing Mechanism under the WASH-FIT initiative establishes a pro-poor revolving loan facility to enable low-income households, to access safe and reliable piped water services in Dollow District, Jubaland. The revolving nature of the facility ensures that repaid capital is continuously reinvested to finance additional household connections, thereby expanding access over time. The initiative is implemented by the Ministry of Energy and Water Resources (MoEWR), in partnership with the Dollow Water Management Company, with technical and financial support from UNCDF and UNICEF.

In this context, the Ministry of Energy and Water Resources invites a qualified Microfinance Institution (MFI) to undertake the following tasks:

A. Design and Implementation of a Pro-Poor Water Connection Revolving Loan Facility

●        Develop tailored Islamic compliant loan products for low-income households, including eligibility criteria, loan sizes, repayment terms, and disbursement procedures.

●        Pilot the loan products in Dollow District and assess performance, including uptake, repayment compliance, and overall feasibility.

●        Integrate loan repayment mechanisms into the water utility billing system to ensure efficiency, transparency, and ease of collection.

●        Ensure that the facility operates as a revolving fund, with repayments systematically recovered and reinvested to finance new connections.

B. Mobilisation and Household Profiling

●        Conduct community-based targeting to identify eligible low-income households, including IDPs.

●        Collect and maintain household socio-economic and service access data to inform loan eligibility, targeting, and impact monitoring.

●        Enroll selected beneficiaries into the revolving loan portfolio and maintain accurate and up-to-date records.

C. Financing and Facilitation of Low-Income Household Water Connections

●        Identify and select eligible households for connection to the water supply network in coordination with the Dollow Water Management Company.

●        Disburse micro loans to low-income households to cover connection costs and ensure sound financial management of the revolving fund.

●        Facilitate the installation of household piped-water connections in collaboration with the water utility.

●        Monitor loan repayment performance and ensure timely recovery and reinvestment of funds to sustain and scale the revolving facility.

D. Community Awareness and Demand Generation

●        Design and implement community awareness campaigns to promote understanding of the revolving financing mechanism, including eligibility criteria, loan terms, and benefits of piped water access.

●        Build household awareness of repayment modalities, particularly the integration of loan repayment into water bills, and the long-term sustainability of the revolving fund.

E. Monitoring, Reporting, and Performance Tracking

●        Track and report on agreed indicators related to loan performance, including uptake, repayment rates, portfolio quality, and fund utilisation.

●        Monitor and report on changes in household socio-economic conditions and access to water services among beneficiaries.

●        Provide regular progress reports to the Ministry, UNICEF and UNCDF, including analysis of performance, challenges, and recommendations to strengthen the effectiveness and scalability of the revolving fund.

Expected Outcomes

●        Establishment of a fully operational pro-poor revolving loan facility supporting household water connections.

●        Increased household-level access to safe and reliable piped water services for low-income and displaced populations.

●        Improved financial inclusion and repayment capacity among beneficiary households.

●        Replicable model demonstrating blended financing for inclusive, pro-poor WASH service delivery in urban and peri-urban contexts.

Technical Qualification Threshold: A bidder scoring 50 points or more out of 70 shall be considered technically qualified and shall proceed to financial evaluation. Any bidder scoring below 50 points shall not be technically qualified and shall not proceed to financial evaluation.

6. Finical Creatia

Financial proposals will be checked for completeness, arithmetic accuracy and consistency with the TOR. The evaluated price comprises service costs for Activities 1, 2, 3 and 5, plus the USD equivalent of the Activity 4 commission. Seed capital shall be shown separately.

Financial score = (Lowest evaluated price ÷ Bidder’s evaluated price) × 30 Only technically qualified bidders are compared. The lowest evaluated price receives 30 points; other qualified bidders receive proportionately lower scores.

Interested Microfinance Institutions (MFIs) or implementing partners are invited to submit their applications to the MoEWR –, including the following documents:

1. Organisational profile demonstrating experience in microfinance, pro-poor lending, or related financial services.
2. Technical proposal outlining approach to loan design, household mobilisation, coordination with MoEWR and Water Utility, repayment management, and monitoring & evaluation.
3. Financial proposal including proposed management of seed capital, revolving fund, and sustainability measures.
4. Evidence of experience with similar projects, including references, contacts, or reports.
5. Staff qualifications relevant to implementation, including loan officers, community mobilizers, and M&E personnel.

The bidder shall complete the table by entering the total cost in USD for Activities 1, 2, 3 and 5, with a separate cost breakdown. For Activity 4, the bidder shall enter only the MFI service commission rate (%) and explain separately how it is calculated for 185 households. Seed capital shall be shown separately from service costs and commission.

Deadline for Submission: 11/NOV/2026, 3:59 PM Somalia time (UTC+3)

Submission Address: procurementjssmoewr@gmail.com cc, hradminfin-moewr@jubalandstate.so

Submission Format: Applications should be submitted in PDF format, clearly labelled with the institution’s name and “Application for WASH-FIT MFI Partnership.” A printed copy may also be submitted by hand to the Ministry of Energy and Water Resources (MoEWR), Jubaland.