Water

Water Financing Partnership Facility
About the Facility

In 29 November 2006, ADB approved the establishment of the Water Financing Partnership Facility (WFPF) to mobilize cofinancing and investments from development partners. Find out what the Facility can do, and how each country can benefit from it.

MORE ABOUT THE WFPF Main Page About the Facility Investment Windows WFPF Supported Projects Investing in the Facility Multi-Donor Trust Fund Netherlands Trust Fund

ADB established the Facility to provide the Water Financing Program (WFP) with additional financial resources and technical support for components of investment projects, technical assistance operations, knowledge management, and regional cooperation.

Resources from partners under the facility will be provided through

• project-specific loans, grants, or guarantees under framework agreements to be negotiated with each financing partner
• pooled grants through the WFPF trust fund component
• other forms of assistance

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Initial contributions to the facility, targeted at $100 million by 2008, will be utilized as follows:

	Project Support 70% for demonstration projects under the WFP in ADB’s developing member countries
	Program Quality Support 30% will support the quality of the Water Financing Program through knowledge, capacity, and innovation services; engaging civil society; and regional cooperation.

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When designing the Facility, ADB considered key lessons from the implementation of the Cooperation Fund for the Water Sector, which has catalyzed the implementation of ADB’s Water Policy over the past 5 years. It also assessed the recommendations of the independent panel which reviewed the implementation of the Water Policy.

Specifically, the following lessons were incorporated into the WFPF:

• The facility will be allowed to support ADB's water operations directly and bring additional resources to projects that deliver the targeted outcomes of the WFP.
• The pilot and demonstration activities program will be continued as it has demonstrated innovative solutions that can be adopted in larger programs, and has contributed directly to poverty reduction and better livelihoods.
• Support for regional cooperation will move from large regional meetings on IWRM toward separate networks for key types of water organizations (e.g., utilities, river basin organizations, and apex bodies), with the introduction of performance benchmarking and peer reviews.
• Specific advocacy messages on policy and institutional reforms and better practices will be targeted at policy and decision makers in developing countries, thereby moving beyond the promotion of awareness of key issues in the sector.

The WFPF also took into consideration several ADB initiatives, including the enhanced poverty reduction strategy, the management for development results initiative, the innovation and efficiency initiative, and ADB's focus on helping countries to achieve the Millennium Development Goals, especially the targets for increased access to safe drinking water supply and improved sanitation.

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

Karen Decker
Senior Financing Partnerships Specialist
E-mail: kdecker@adb.org