Closing the Implementation Gap of Water Security Strategies: Financing Framework for Water Security

To close the current gap between strategic adaptive planning for water security and the investment planning phases, we have developed the Financing Framework for Water Security. The FFWS is a collaborative deal origination and project preparation approach that enables effective cooperation between the project delivery and finance community and the water resources and watershed conservation communities of practice to convert water security strategies into investable propositions. The process enables the development of strategic investment pathways that making use of a blended finance approach leverage greater private sector participation and investments in achieving water security and climate adaptation.

We have demonstrated the use of this approach in seven cases around the world: Europe (Romania, Spain and the Netherlands), South East Asia (Indonesia and Philippines) and Latin America (Mexico and Ecuador). The approach is starting to be applied in the Dry Corridor in Central America in cooperation with the Organization of American States and the Global Environment Facility and in Peru as part of the Valuing Water Initiative of the Government of the Netherlands.

The FFWS guides actors in the planning process through the various stages of building a paradigm shifting investment program and a clear Theory of Change towards a win-win situation for economy and environment. The result is a water security strategy worked out into a phased investment portfolio in which the most promising clusters of projects are developed into deals that are attractive for public and/or private investors. The Water as Leverage for Resilient Asian Cities Initiative enabled us to develop a proof of concept for the city of Semarang, Indonesia. With Cascading Semarang: Steps towards inclusive growth, we demonstrated to multilateral development banks and climate funds the transformative potential of this new to multilateral development banks and climate funds the transformative potential of this new approach, which is centred around the water cycle dynamics and the scale of the river basin.

With the introduction of this ‘cascading’ approach, we have developed five urban solutions: Spongy Mountain Terrace, Micro-Interventions, Rechanneling the City, Feeding the Industry and Recharging the Aquifer. They all lead to increases in the storage and utilisation of surface water which are needed to safeguard city livelihoods.

Closing the Implementation Gap Team

Within Deltares a small team of experts from all Deltares units is working together since 2019 to innovate and demonstrate in large integral projects the impact of a new way of planning for water security and resilient economic development. The name of this team is: Closing the Implementation Gap. By combining Deltares state of the art modelling expertise regarding the management of floods, droughts and water quality risks with project preparation skills (economics of infrastructure, public-private cooperation and infrastructure asset management) the team works on the development of strategic investment pathways for water security. In the development of these pathways a blended finance approach is adopted to leverage greater private sector investments in water security and adaptation.

  • Valuing Water Journey (Peru)
    Developing a strategy for systemic change for the true value of water and water risks to be internalized in public and private investment decisions. Driving in the economic development paradigm of Peru towards a win-win model for economy and environment that ensures truly sustainable and resilient economic growth and development.  Development of strategic plan for water security for the Chancay-Lambayeque basin and early private sector involvement to leverage private financing in watershed conservation.
  • Resilient Oaxaca: developing urban resilience investment projects for Oaxaca de Juarez (Mexico)
    Training on the Financing Framework for Water Security and investment planning techniques for Oaxaca Secretary of Infrastructure; identifying of business opportunities for public-private collaboration.
  • OECD Water Policy Dialogues (Argentina)
    Peer reviewer for the Netherlands on water financing and Water Resources Management. Providing best practices on water financing and institutional arrangements and supporting the OECD team with the interviews with actors from the public, private, academic, and not for profit sectors.