Capital
SaRCiSP sustains itself through the interventions it originates, not through repeated donor cycles. Two fees apply to each intervention:
- Development fee. Before an intervention starts, SaRCiSP assesses each candidate community, selects the operating unit, prepares a first roadmap and engages local counterparts. Terravive Group carries the cost of this work in advance. The community pays a development fee of €50K, which is added to its concessional loan and paid when financing closes.
- Financing fee. Terravive Group receives a fee of 5% to 10% of the intervention total for mobilizing, structuring and coordinating the capital, and for the risk it carries. The fee is charged in addition to the intervention budget, so the full budget remains available for delivery. It is not taken from the community. Where it falls in the range depends on the complexity of the financing, the work and risk involved, and what the capital provider requires. Where an operational partner that supports a country's SaRCiSP presence shares in the fee, its share comes out of Terravive Group's fee, not from the budget or the community.
Funding Split
A community contributes between 15% and 25% of the intervention total, as a concessional loan. Grant and concessional funders finance the rest. In the early stages most of that comes from philanthropic and catalytic partners. As interventions show results, development finance institutions and blended finance vehicles join, and private capital follows where the risk allows.
SaRCiSP does not ask central governments for funding. Results come first, and governments follow.
Community Contribution
Each community owns the interventions in its area and holds a stake in them through its contribution. SaRCiSP arranges the concessional loan, so a community without ready cash can still take part. It pays nothing upfront, because the loan is drawn when the remaining funding is secured.
Repayment is protected. Cash flow is pooled across all the interventions of an operating unit cluster, a group of neighbouring communities working together. Debt service is capped at 30% of the pooled monthly net cash flow, and the communities keep the rest. The loan carries a one-year grace period during construction, followed by a repayment term of 8 to 12 years.
SaRCiSP Fees
SaRCiSP structures the capital for each intervention so that a community can take part without paying anything upfront, and so that funders can see where their money goes. Each operating unit is financed at its own pace, and units do not need to move in step.
A Typical Cluster
| Item | Amount |
|---|---|
| Community loans (15–25%) | €1.5–2.5M, plus €0.35M in development fees |
| Financing fee (5–10%) | €0.5–1.0M, in addition to the €10M |
| Grant and concessional funding | About €7.5–8.5M |
Capital over Time
Capital arrives in stages that match where the operating unit has got to.
- Concept and definition: Terravive Group's own funds with early sponsor and corporate responsibility support, plus foundation grants where available, in small tickets based on conviction
- Development: preparation grants from development finance institutions and blended seed capital, with the community's contribution, in mid-sized tickets
- Implementation: commitments from development finance institutions and blended finance vehicles, with private capital where the risk allows, in large tickets
- Scaling and renewal: capital for execution and continuity, with returns and replication capital as the operating unit matures
Capital Protection
Capital allocated for a specific purpose remains dedicated to that purpose and may only be reallocated in accordance with the applicable governance arrangements.
Funding allocated to a Country Node, an Operating Unit or an individual intervention is accounted for separately, providing clear financial boundaries and traceability across SaRCiSP's operations. Funders can assess and model expected outcomes before committing capital, then monitor its allocation, use and associated results throughout implementation.
Ecosystem-Services Partnerships
Where Operating Units generate measurable ecosystem services, such as carbon sequestration, biodiversity restoration or watershed protection, SaRCiSP develops partnerships to support their recognition, valuation and long-term financing. These partnerships connect Operating Units with relevant technical institutions, ecosystem-service buyers, funding organisations and other stakeholders to establish credible measurement and verification methods and identify appropriate mechanisms for translating ecological benefits into financial and operational value.
The objective is to enable Operating Units to access resources and participate in the value generated by their ecological work, while maintaining the integrity of the interventions and ensuring that benefits reach the communities involved. Partnership models are developed according to the ecosystem services involved, the characteristics of the local environment and the needs of the communities concerned.