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Funds and Resources

ADB also provides loans and grants from Special Funds and also offers grants that help reduce poverty in ADB's poorest borrowing countries.

Water Financing Partnership Facility

What is the Water Financing Partnership Facility?

The facility mobilizes additional financial and knowledge resources from various development partners to support the Water Financing Program (WFP) implementation. Established in November 2006 with initial contributions targeted at $100 million, the Facility has since provided the WFP with additional financial resources and technical support for components of investment projects, technical assistance operations, knowledge management, and regional cooperation.

What are the priorities?

The facility's resources finance direct project support and program quality support.

Direct project support covers the WFP's three investment areas:

  • Rural water (rural water supply and sanitation and irrigation and drainage),
  • Urban water (urban water supply, sanitation and wastewater management), and
  • Basin water (water resources development and management, flood management, wetlands and watershed protection, and hydropower generation).

Support for program quality facilitates reforms and strengthen capacity, and help ensure quality, synergy, and innovation in WFP implementation. It finances projects and activities supporting:

  • Knowledge and capacity development;
  • Innovation;
  • Engagement of civil society; and
  • Regional cooperation.

In terms of specific focus over the next ten years (2011-2020) of operation, the facility will support the following priority thrusts embodied in ADB's Water Operational Plan 2011-2020:

  • Increased water use efficiencies across the range of users
  • Expanded wastewater management and reuse, including sanitation
  • Embedded integrated water resources management (IWRM), including improved risk management to mitigate floods, droughts, and other water-related disasters
  • Expanded knowledge and capacity development that uses technology and innovation more directly
  • Enhanced partnerships with the private sector

What kinds of activities are eligible for the fund's resources?

The facility finances activities designed to result in significantly more people in the Asia and Pacific region with access to safe drinking water and improved sanitation, higher productivity and efficiency of irrigation and drainage services, more people with reduced risk of flooding, and more river basins implementing integrated water resources management. The activities are clustered based on the following target outputs:

  • Increased levels of water investment – by supporting preparation of projects resulting in fundable investment proposals and by financing grant component of loans and technical assistance attached to loans.
  • Accelerated policy and institutional reforms – by supporting enhancement of policy, legislation, and regulations; and facilitating reform process
  • Strengthened institutional capacity and expanded knowledge base – by implementing pilot and demonstration activities that produce new and innovative approaches, strategies and technologies; undertaking capacity development interventions targeted at key water sector organizations, e.g. water utilities, river basin organization, and apex bodies; developing knowledge products; and establishing or strengthen knowledge partnerships, regional cooperation, and civil society participation

What will donors gain from contributing to the facility?

Investing in the facility gives partners the following benefits:

  • Direct and on-the-ground results. Partners help to improve the lives of millions of people and make a significant contribution to achieving the MDG targets through supporting pro-poor project design, subsovereign financing, water sector governance, the performance of water sector organizations, environmentally sustainable approaches, and the introduction of IWRM in river basins.
  • 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 fund?

Australia, Austria, Bill & Melinda Gates Foundation, The Netherlands, Norway, Spain, and Switzerland support the fund.