Water Financing Partnership Facility

What is the facility?

In December 2006, the Board of Directors of the Asian Development Bank (ADB) established the Water Financing Partnership Facility (WFPF) to provide additional financial and knowledge resources from development partners for the implementation of the water financing program of ADB. 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 continues to support ADB's water operations from 2021 onwards guided by the Strategy 2030 Water Sector Directional Guide: Water-Secure and Resilient Asia Pacific. The guide provides the strategic direction of ADB's agenda in supporting developing member countries (DMCs) with knowledge, convening ability, and technical assistance to ensure improved coherence, relevance, efficiency, and effectiveness of ADB’s water sector investments. It reflects the Mainstreaming Water Resilience in Asia and the Pacific: Guidance Note, which provides a shared vision of climate adaptation and resilience for ADB staff and DMC counterparts in mainstreaming water resilience and aligning water resilience processes with the project cycle, and which serves as a starting point for the Water Sector Directional Guide's enhanced targets through 2030.

What are the priorities?

The implementation of the Strategy 2030 Water Sector Directional Guide adheres to five guiding principles for improving development outcomes to deliver support in four areas of operational focus for the water sector.

Guiding principles for improving development outcomes

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

Focal areas of delivering support

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

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 is 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 financing partners 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 four trust funds: (i) Netherlands Trust Fund, (ii) Sanitation Financing Partnership Trust Fund with contribution from the Bill & Melinda Gates Foundation, (iii) Water Innovation Trust Fund with contributions from the governments of Australia (2007-2021), Austria, Norway (2007-2017), Spain, and Switzerland (2011-2020), and (iv) Water Resilience Trust Fund with initial contribution from the Government of the Netherlands.