Small Grants Programme: The role of climate risk in multiple-purpose dam finance in East Africa


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In the last few years, East Africa has seen a plethora of multi-purpose dam developments to address the region’s water, energy and food security needs. However, some of the dams are built in dry areas of East Africa where water availability and variability will be a key issue due to climate change. This climate risk is currently insufficiently addressed by traditional and non-traditional dam funders.

This report, based on five years’ research by the PRISE project, provides an overview and analysis of current developments in East African dam finance and climate risk. The analysis adds that both traditional and non-traditional funders of dams recognise the need for climate risk assessments in dam finance but have no coherent approach under way as of now. This requires improved understanding of climate risk from the beginning of dam projects and improved local institutions to strengthen water and energy policies by incorporating climate risk screenings.

 

 

Image: Orkitikiti dam and grazing area in Tanzania –  ILRI/Protecting shared resources such as Orkitikiti dam and OLENGAPA grazing area is key to sustainable pastoralism in Tanzania, by Abraham Akilimal

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