Water

In response to international calls for increased financing for water, ADB launched the Water Financing Program (WFP) to double investments in the sector between 2006 and 2010. Setting a precedent among multilateral development banks, the WFP committed to devoting 25% of ADB’s investment portfolio to water projects and set out to deliver the following specific outcomes:

• 200 million people with sustainable access to safe drinking water and improved sanitation
• 100 million people with reduced risks to flood
• 40 million people with more productive and efficient irrigation and drainage services
• 25 river basins introduced to integrated water resources management (IWRM)
• Improved water governance through national water reforms and capacity development

Read more about the rationale for this program.

WFP will direct investments, reforms, and capacity development programs at rural communities, cities, and river basins.

The WFP is open to all of ADB’s developing member countries but its initial focus is on six countries: the PRC, India, Indonesia, Pakistan, the Philippines, and Viet Nam. Together, these countries represent 75% of the region's population and account for almost 80% of ADB’s water operations.

Read more about WFP’s priority investment areas.

WFP's program for action and implementation includes stronger country-focused investments, increased technical assistance and the development of supporting papers to facilitate increased water investments.

Read more about ADB’s strategy to implement the WFP.

At a 2008 summit of regional water leaders, ADB President Haruhiko Kuroda unveiled a seven-point agenda to prioritize water investments in the Asia-Pacific region. This agenda will guide the 2nd half of the WFP’s implementation.

Read the seven-point agenda or President Kuroda’s full speech.

An analysis of the WFP’s first-half performance shows some promising trends.

• For every dollar ADB approved for a new water sector project, ADB catalyzed almost a dollar in additional investments from either a government, private sector, or other sources. ADB’s 69 approved water projects from 2006 to March 2009 totaled $4.1 billion, catalyzing additional $3.6 billion from its development partners.
• By the end of 2008, ADB boosted to 24% the share of water sector projects in its portfolio, and this is expected to grow to 25% by the end of the WFP in 2010. The breakdown of ADB’s total portfolio for ongoing water projects is as follows: 54% for urban water; 25% for rural water; and 21% for basin water.
• ADB water projects approved between 2006 and March 2009 are expected to have the following results:

View ongoing and pipelined water projects.

In December 2006, ADB approved the establishment of the Water Financing Partnership Facility (WFPF) to mobilize cofinancing and investments from development partners in support of the WFP.

Initial contributions to the facility are targeted at $100 million, of which approximately 70% will be directed toward demonstration projects, and 30% will be for quality support activities.

As of December 2008, WFPF committed and intended contributions have reached almost US$65M.

• Netherlands Trust Fund – US$19.8 M
• Multi-Donor Trust Fund
• Australia – about US$30 M equivalent (US$ 8.7M committed)
• Norway – about US$5.5 M equivalent
• Austria – US$5 M
• Spain – US$5 M

Read the 2008 Annual Report.

The following activities were undertaken as part of WFP’s implementation.

WooChong Um
Director, Energy, Transport and Water Division (RSID)
E-mail: wcum@adb.org

Wouter Lincklaen Arriens
Lead Water Resources Specialist, ADB
E-Mail: water@adb.org

Ellen Pascua
Water Fund Manager
Email: epascua@adb.org