Funds and Resources
ADB offers loans, grants, and technical assistance from Special Funds, Trust Funds, and other sources to help reduce poverty in Asia’s poorest countries.
In December 2006, the Board of Directors of the Asian Development Bank (ADB) established the Water Financing Partnership Facility (WFPF) which included WFPF's first Multidonor Trust Fund to support 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.
The trust fund name was changed from Multidonor Trust Fund to Water Innovation Trust Fund in September 2023.
The fund continues to support ADB's water operations from 2021 onwards guided by the Strategy 2030 Water Sector Directional Guide: A Water-Secure and Resilient Asia and the Pacific to deliver support in four areas of operational focus for the water sector: (i) water as a sustainable resource, (ii) universal and safe water services, (iii) productive use of water in agriculture and energy, and (iv) reduced climate change and water-related disaster risks.
The implementation of the Water Sector Directional Guide adheres to five guiding principles for improving development outcomes: (i) building resilience and adaptive capacity, (ii) promoting inclusiveness and gender equality, (iii) embracing environmental sustainability and the circular economy, (iv) improving governance and catalyzing finance, and (v) fostering innovation and technological advancement.
The fund prioritizes activities designed to result in significantly more people 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 other water-related disaster risks; sustainable management of water resources; increased knowledge and capacity; and improved sector governance.
The change in name to Water Innovation Trust Fund intends to highlight WFPF's focus on innovations for improved water resources management and water services delivery.
The fund supports WFPF-eligible activities through two windows: project support and program quality support, delivered through the three pillars of the WFPF Results Framework 2021-2030 as follows:
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.
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.
All ADB DMCs are eligible to receive support from the fund. Priority countries include Bangladesh, Cambodia, Fiji, India, Indonesia, Kyrgyz Republic, Lao PDR, Mongolia, Nepal, Papua New Guinea, Philippines, People’s Republic of China, Solomon Islands, Sri Lanka, Uzbekistan, Vanuatu, and Viet Nam. Other countries may be considered based on need, in consultation with the Foundation.
All ADB DMCs are eligible to receive support from the fund.
The governments of: Austria and Spain support the fund.
Previous financing partners included Australia (2007-2021), Norway (2007-2017), and Switzerland (2011-2020).
Further information is available from the WFFP Secretariat.