Role of climate risk in multiple purpose dam finance in East Africa : small grants programme

The study analyzes whether and how the economic dimension of climate risk is included in dam funding agreements, largely financed by external donors. It provides an overview of the rationale of decision-makers in Ethiopia, Kenya and Tanzania for building dams for economic development, and current policies of traditional and non-traditional donors in relation to climate risks. Multipurpose dams are being built or proposed in order to cater to the water, energy and food needs of growing populations. At the same time, East Africa is a hotspot for climate-related risks such as floods and droughts.UK Government’s Department for International Development (DfID