FMO and NWP renew MoU to help Dutch water sector increase its impact

FMO and NWP renew MoU to help the Dutch water sector increase its impact abroad

In November 2017, the Netherlands Water Partnership (NWP) and the FMO Entrepreneurial Development Bank joined hands to help close the gap between international water projects and finance. Their collaboration led, among others, to a market analysis of financing needs of the (Dutch) water sector and identification of various international opportunities for increased collaboration between FMO and Dutch water sector players in water projects abroad.

This type of collaboration between a bank and network organisation is unique and the first in its kind, aimed at helping the Dutch water sector increase its impact abroad. Next year, in addition to continued efforts to identify bankable projects, both organisations want to further improve the Dutch water sector’s skills in project development; create awareness about potential financial instruments and encourage greater coordination among ministries, the Dutch water sector and financiers. This ambition was expressed at the Amsterdam International Water Week (AIWW) Summit held in Rotterdam on 15 November 2018, where NWP and FMO signed for the renewal of their Memorandum of Understanding (MoU) and celebrated FMO’s official membership of NWP.

Global financing gap of $7,500 billion

The total global investment requirement for water infrastructure until 2030 is estimated to be $7,500 billion until 2030. Only $6,300 billion is projected to be available, leaving a financing gap of $1,200 billion. Attracting private sources of finance is pivotal for realizing the needed interventions.

Various finance institutions with an ambition to finance water related projects and initiatives, seem to struggle to fill their pipeline. There is no lack of money, but a lack of bankable projects. Jointly FMO and NWP explored what the underlying factors are that contribute to that and how they can be overcome. Findings are presented at the AIWW Summit in Rotterdam and will be further finetuned and tested with other Dutch financiers in a roundtable session to be held in December 2018.

Aart Mulder, Manager FMO NL Business, Project & Partnership Development: “With this new MoU we combine the strength of NWP as a network organization with FMO’s NL Business activities to collaborate in the development and financing of water initiatives. The goal is to realize projects in emerging markets using Dutch expertise and  contributing in particular to Sustainable Development Goal 6 (clean water and sanitation). The close cooperation between both institutions has already given rise to a pipeline of 27 water projects under review”. 

Ewout van Galen, Acting Director Netherlands Water Partnership: “The continued cooperation under the recently signed agreement between FMO and NWP contributes to the ability of the Dutch water sector to implement sustainable water initiatives and achieve lasting impact internationally. Connecting the world of finance to Dutch water expertise further strengthens the Netherlands as a centre of excellence for water in the world”.