ABOUT DSIF

    Danida Sustainable Infrastructure Finance (DSIF) is the primary Danish aid delivery mechanism for large scale infrastructure projects in developing countries. DSIF is a central part of the official development cooperation funded by Denmark’s Ministry of Foreign Affairs (Danida) and is administered by the Investment Fund for Developing Countries (IFU).

    Well-functioning infrastructure is crucial for sustainable and inclusive economic and social development. This is also the case in developing countries where project development and capital availability are often constrained. Consequently, an important part of the Danish policy on development cooperation is to promote and support non-commercial infrastructure projects in low- and middle-income countries and fragile states.

    Consequently, the purpose of DSIF is to provide access to finance for sustainable public infrastructure projects in emerging markets and developing economies that cannot be financed on market terms. By promoting sustainable infrastructure through the deployment of concessional capital and technical expertise, DSIF supports the UN 2030 Agenda and SDGs as well as Denmark’s strategy for development cooperation, The World We Share.

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    VALUE AND IMPACT CREATION

    Supporting the Sustainability Development Goals

    Poverty reduction and Climate action are at the centre of DSIF’s mission to promote investments in infrastructure which support sustainable development in developing countries and realisation of the SDGs.

    Value and impact are created by providing access to concessional finance that will de-risk investments and ease terms of repayments for governments leading to the construction of infrastructure otherwise in risk of not materialising due to limited public budgets or lack of commercial finance.

    The infrastructure projects are demand-driven and made in close cooperation with governments and other development partners to ensure that they address local development needs and are long term cost effective as well as environmentally sustainable.

    By leveraging Danish green technology, knowhow and other sustainable solutions, DSIF assist in promoting climate smart and best in class technology solutions.

    Moreover, across projects there is a strategic focus on creating decent jobs, gender equality, as well as supporting youth employment and the green transition. See DSIF Strategy (DSIF’s mission and value proposition) for more detail

    HOW WE WORK

    Providing concessional finance for infrastructure projects

    DSIF supports infrastructure delivery through the entire project lifecycle – from initial project definition, through construction, to final take-over of assets and commencement of operations. A strong emphasis on development impact objectives is maintained throughout implementation and results are monitored until five years after handover.

    What we offer

    • DSIF financing to projects in the form of concessional debt, including coverage of interest and other financing costs and provision of grant funding where applicable.
    • DSIF financing and support to:
      • Project Preparation through technical feasibility assessments and other preliminary design documentation, with a strong focus on environmental sustainability and long-term cost efficiency.
      • Procurement and Contracting of Works through associated technical assistance, design and supervision contracts, including for large and complex projects.
      • O&M Support through technical assistance and capacity development support, often including elements of twinning with Danish utilities.

    A strong sector focus
    DSIF is focused within three main sectors of core Danish competence that are essential to achieving sustainable development and improving the livelihoods of people while protecting the planet.

    Operating in low- and lower-middle income countries
    DSIF operates in low-income and lower middle-income countries as defined by GNI per capita (below USD 4,095 in 2023) with a Danish representation. Africa is a priority region and expected to maintain a two-thirds share of total DSIF engagement. DSIF adopts a differentiated approach to each country group depending on specific needs, level of poverty, and wider Danish development cooperation efforts. See DSIF Strategy (DSIF’s mission and value proposition) for more detail.

     

     

     

    Project development

    The massive infrastructure investment needed to drive inclusive growth and reduce poverty in the countries where DSIF operates is hampered by challenges including low capital availability and high perceived risk – especially at the earliest stages of the infrastructure project lifecycle. Often, available capital is not utilised due to a lack of bankable projects.

    Moreover, ensuring inclusive social and economic development is not only a matter of just closing the “financing gap” but also a question of how governments prioritise using financing to bring about sustainable solutions.

    DSIF project development related activities, including feasibility assessments, project design, and upstream technical and legal assistance to local partners serve to de-risk and mobilise financing to projects at a critical stage in the investment cycle, while embedding long-term cost effectiveness and environmental sustainability right from the onset.

    ELIGIBILITY FOR DSIF SUPPORT

    Official requests for support must come from the public authorities in host countries. However, private companies may also present proposals to the DSIF team for initial discussions on eligibility.

    Key information required in DSIF’s initial assessment of project eligibility includes:

    • Project background
    • Poverty reduction and climate action objectives
    • Total project investment incl. detailed budget
    • Type of equipment to be delivered
    • Contract amount to be financed
    • Financial set-up including borrower and guarantor (confirmed by a letter of intent)
    • Organisational set-up
    • Timetable and milestones in the project
    • Requirements for support

    All projects must be tendered. As a point of departure, the tender will be limited to Danish suppliers, but where there is a lack of Danish tenderers international bidding may be chosen.

    IFC Performance Standards on Environmental and Social Sustainability and UN Guiding Principles on Business and Human Rights are applied in all DSIF-supported projects.

     

     

    CASES

    REBUILDING DISTRICT HEATING IN UKRAINE

    The Russian invasion of Ukraine has led to a massive destruction of Ukrainian infrastructure. DSIF has provided grant financing of DKK 34 million for 20 new containerised boiler units to rebuild district heating in a Ukrainian city.

    With a total capacity of 39 megawatts the new boilers will ensure district heating to more than 180,000 people, covering around 80 per cent of the population in the city where they are to be installed.

    Investment year: 2022
    DSIF Investment: DKK 34 million (grant)
    Impact:

    • 39 megawatt district heating boilers
    • 3,400 tons of greenhouse gas emissions avoided annually
    • 180,000 people with new or improved access to modern district heating

    Read more

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    IMPROVING WATER SUPPLY IN KENYA

    Water is a scares resource in Kenya and there is an urgent need to improve water supply as well as the handling of wastewater across the Country. Based on request from Kenyan authorities, DSIF has engaged in a water project in two population centres – Thika and Githunguri – located North and Northeast of the capital Nairobi.

    In total, the project will improve access to clean and affordable water for around 280,000 people and around 360,000 people will be connected to piped sewerage.

    Investment year: Expected 2024
    DSIF investment: DKK 1.050 (35 % concessionality)
    Impact:

    • 280,000 people with improved access to clean water
    • 360,000 people with new or improved access to piped sewerage
    • 3-400 short- and long-term jobs will be created.

    Read more

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    SUPPORTING WIND POWER IN BOLIVIA

    Santa Cruz Wind Power Project in Bolivia was approved by DSIF in 2016. The project was made in cooperation with the national electricity company, ENDE, and is located in an area with optimal wind conditions. The total combined capacity in the three project sites is 108MW, and the project is providing electricity for around 1.37 million people.

    Vestas has supplied the 30 wind turbines.

    The project supports Bolivia’s ambition to reduce fossil fuel-based generation to around 25 % in 2025.

    Investment year: 2018
    DSIF investment: DKK 763.7 million 35 % (concessionality)
    Impact:

    • 1,370,000 people served with renewable energy
    • 365.3 GWh of renewable energy produced annually
    • 149,800 tons CO2e reduced emissions annually
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    Tender announcements

    There are currently no tender announcements

    PIPELINE

    Project name Country DESCRIPTION STATUS ESTIMATED CONTRACT AMOUNT
    Saidabad III Bangladesh Develop safe and sustainable water supply for two million people to meet the needs of the fast growing population in Dhaka. Components 1 and 3 of the "Wider Project" are financed by the European Investment Bank (EIB) and the Agence Française de Développement (AFD), while component 2 is funded by DSIF. Approved 1,350,000,000
    Zaporizhzhia WWTP Ukraine The Zaporizhzhia Wastewater & Sludge Treatment Project develops a fully upgraded water treatment plant with capacity of 280,000 m3/day and a sludge treatment plant with a capacity of at least 500 m3/day. The capacity will be sufficient to receive all wastewater from the city of 760,000 inhabitants. Approved 140,000,000
    Lviv WWTP Rehabilitation Ukraine The Lviv WWTP Rehabilitation project is to increase the efficiency in removing organic matter from the wastewater to comply with Ukrainian and EU standards. The project is one of three DSIF-NEFCO (Nordic Environment Finance Corporation) projects within energy, water and sanitation in Ukraine and is co-funded by the ERBD. Approved 197,000,000
    Wakiso West WSS Uganda The Wakiso West WSS project contributes to water availability in Wakiso West, an area west and south-west of Greater Kampala Metropolitan area, and to improvement in the capacity to collect and treat faecal sludge. Approved 1,362,000,000
    Thika and Githunguri WSS Kenya The project will renovate and expand the water and sanitation system in Thika and Githunguri, including water treatment plants; new water intakes, boreholes, dams and reservoirs; water distribution systems; extension of the sewerage system, and renewable energy plants for the water treatment plants. Approved 1,126,000,000
    Faisalabad WWTP Pakistan The Faisalabad WWTP project aims to establish a wastewater treatment facility with a capacity of 200,000 m3/day. The wastewater treated at the facility will come from a combined source of domestic and commercial/industrial consumers. Approved 1,191,000,000
    South Lahore WWTP Pakistan The Kattar Bund (South) Lahore wastewater treatment plant comprises a facility to deliver 245,000 m3/day of treated water, the equivalent of estimated 1 million inhabitants. Other donors currently involved in Lahore include JICA (Japan), World Bank, Asian Development Bank and AfD (France). Cleared in principle
    Assela 2 Wind Farm Ethiopia Assela II consists in the construction of a 150 MW wind farm at Iteya, near to the Assela I Wind Farm, which was also financed by DSIF, that includes an electric substation and connection to the overhead high voltage transmission line. Cleared in principle 1,000,000,000
    Aveyime Water Supply Ghana The Aveyime - New Water Treatment Plant and Transmission lines and distribution system is a greenfield project with a proposed capacity of 45,000 m3 per day to supply water to new urban and industrial development areas around Tema. Cleared in principle
    Kayes Transmission Mali The project will consist of design and construction of power transmission lines and electrical substations to supply electric power to industries and mines, as well as for general regional electrification in the Kayes region. Cleared in principle
    Bobo-Dioulasso WSP Burkina Faso The Bobo-Dioulasso WSP aims to build a Faecal Sludge Treatment Plant at the edge of Bobo-Dioulasso with a 400 m3/day capacity, as well as a Water Treatment Plant (66,000 m3/day) from the Samendéni Dam to Bobo-Dioulasso and selected urban centers along the pipeline. Cleared in principle

    Team

    If you have enquiries regarding a specific region or country, please contact our team.

    Tina Kollerup Hansen

    Tina Kollerup Hansen

    Senior Vice President, Danida Sustainable Infrastructure Finance +45 33 44 12 35 ifu@ifu.dk
    Lene Mollerup

    Lene Mollerup

    Investment Director, Danida Sustainable Infrastructure Finance +45 33 44 12 32 ifu@ifu.dk
    Annelise Boysen

    Annelise Boysen

    Investment Director, Danida Sustainable Infrastructure Finance +45 33 44 12 34 ifu@ifu.dk
    Annemette Ditlevsen

    Annemette Ditlevsen

    Investment Director, Danida Sustainable Infrastructure Finance +45 33 41 12 41 ifu@ifu.dk
    Jacob Klingemann

    Jacob Klingemann

    Investment Director, Danida Sustainable Infrastructure Finance +45 33 63 75 28 ifu@ifu.dk
    Bente Schiller

    Bente Schiller

    Investment Director +45 33 44 12 26 ifu@ifu.dk
    Mikael Tendo Koefoed Bjørnsen

    Mikael Tendo Koefoed Bjørnsen

    Investment Manager +45 33 44 12 52 ifu@ifu.dk