IFU (The investment fund for developing countries) is considering investing in W2AF (Water Access Acceleration Fund), a water impact fund managed by Incofin. IFU has requested the Consultant to support IFU in conducting an impact due diligence of this fund. The objective of the impact due diligence of the W2AF is to allow decision making on IFU’s investment in the fund and to provide information on how IFU should monitor its investment in the fund. The objective of the consultancy is to support IFU in designing the impact due diligence through assessing the strategy of the fund for achieving impact and its operational capacity to monitor and ensure that the intended impacts are realized.
The consultancy began with the design of the study which included a review of the fund and its background information, interviews with the fund management, and to agree on the scope of the impact due diligence. Secondly, PEM assessed the strategy and the operational capacity of the fund and provided recommendations on how IFU should manage their investment in the fund.