Water Financing Partnership Facility

What is the facility?

The Water Financing Partnership Facility (WFPF) was established in December 2006 to mobilize additional financial and knowledge resources from development partners for the implementation of the Asian Development Bank’s (ADB) water financing program. Its initial focus was to support achievement of targeted outcomes set for 2006-2010 and was subsequently adjusted and extended to 2020 following approval of ADB’s Water Operational Plan 2011-2020. Building on this experience, WFPF will continue to support ADB’s water operations from 2021 onwards guided by the Water Sector Framework 2021-2030: Water-Secure and Resilient Asia Pacific that articulates how water operations contribute to ADB’s Strategy 2030.

What are the priorities?

The Water Sector Framework 2021-2030 frames ADB’s future water portfolio around five guiding principles that will influence ADB’s programming and project planning across four focal areas for delivering successful and sustainable outcomes.

Guiding principles

1. Building resilience and adaptive capacity
2. Promoting inclusiveness and gender equality
3. Embracing sustainability
4. Improving governance and catalyzing finance
5. Fostering innovation and technological advancement

Focal areas of delivery

1. Water as a sustainable resource
2. Universal water and sanitation services
3. Productive water in agriculture and the economy
4. Reduced water-related risks

Integration across the focal areas will be actively encouraged to overcome sector silos and achieve multiple benefits.

What kinds of activities are eligible for the facility’s resources?

The WFPF was established with two windows: the first for project support and the second for program quality support to be delivered through the three pillars of the WFPF Results Framework 2021-2030:

a. Project support window

Pillar 1: Enhance project design and implementation – providing sector and thematic analysis as a basis for improved project and program design; pilot testing promising innovations; catalyzing additional finance, including green funds and the private sector; creating incentives for bringing about change; and emphasizing resilience, inclusiveness, sustainability, good governance and innovation in project preparation and implementation.

b. Program quality support window

Pillar 2: Strengthen policies, institutions and regulations – focusing on support for enabling frameworks at country and regional levels that encourage good governance, including more effective and sustainable management of resources and delivery of services; greater inclusiveness and equality in the targeting of benefits; and more extensive involvement of the private sector.

Pillar 3: Develop capacity and manage knowledge – creating capacity and upgrading skills of those responsible for delivering services and managing resources; and initiating knowledge management programs to accompany and support change processes, based on long term partnerships and a systematic assessment of knowledge needs.

Approximately 70% of the funding will be directed to Pillar 1 under the project support window and 30% to the second and third pillars under the program quality support window.   

Who is eligible to receive funds from the facility?

All ADB developing member countries (DMCs) are eligible.

What will donors gain from contributing to the facility?

Contributing to the facility gives partners the following benefits:

• Direct and on-the-ground results. Financing partners help to improve the lives of millions of people and make a significant contribution to achieving the SDG targets.
• Increased donor harmonization and efficiency gains. The facility provides an opportunity for development partners to increase donor harmonization and maximize efficiency gains and joint impact.
• Strengthened partnerships. The facility helps strengthen partnerships in the water sector among governments, donors, civil society, and the private sector at project and country level, and through regional cooperation.

Who supports the facility?

The facility consists of three trust funds: (i) Multidonor Trust Fund with contributions from the governments of Australia, Austria, and Spain, (ii) Netherlands Trust Fund, and (iii) Sanitation Financing Partnership Trust Fund with contribution from the Bill & Melinda Gates Foundation.