A parallel study to this business case has demonstrated that viable conservation projects exist in the Orange-Senqu River Basin that require funding. Projects range from studies and monitoring, to implementation of interventions on priority transboundary conservation issues. Projects may be implemented by the parties, or by ORASECOM. Whatever the nature or implementation arrangements for the projects, funding for these projects is required. The ORASECOM agreement requires ORASECOM to recommend funding arrangements to accompany any project recommendations that the commission may make. Accordingly, The ORASECOM Conservation Fund (OCF) has been proposed as a vehicle to obtain, manage and disburse finance from innovative funding sources, for conservation measures in the Orange-Senqu River Basin. The specific objectives of the OCF are:

• To identify priority conservation issues for funding, from the list of priority conservation issues identified in the ORASECOM strategy (Basin Wide Plan);
• To develop a funding strategy for the priority conservation issues;
• To develop projects to address the priority conservation issues, including feasibility and bankability;
• To source and manage funding for the priority conservation issues, including contract management and disbursement for projects;
• To monitor success of projects and funding, and to report on achievements;

Objectives and functions of the Fund are enabled by the legal form of the Fund, which conveys powers and responsibilities on the Fund. In addition, the legal form provides the legal framework within which the Fund operates and ensures good governance, accountability and transparency for the OCF. Accordingly, the legal form is a critical element in ensuring funder confidence in the OCF through creating the appropriate legal and governance structure for the OCF. The business case explores the legal form in depth, deploying a number of criteria to evaluate a decision tree on appropriate legal form. The recommendation arising from the detailed analysis is that the Fund be established as a charitable company in term of Section 21 of the South African Company’s Act. The location was chosen owing to the legal proximity to ORASECOM, which will be hosting the Fund.