Strengthening the Sustainability of Water Investments

Earlier this month, the Resilient Water Accelerator participated in the 12th Roundtable on Financing Water, titled “Strengthening the Sustainability of Water Investments: Alternative Financing Approaches and Models.” The event, which was convened by the OECD and the Islamic Development Bank (IsDB), brought together stakeholders from diverse backgrounds to explore funding and financing models that can foster greater sustainability and resilience of water-related investments by demonstrating:

· a balanced approach to risk-sharing between providers and recipients of capital;

· a strong focus on asset maintenance and sustainability; and

· incentives for the delivery of results measured not only in financial terms but based on social and environmental indicators.

(Credit: Sustainable Apparel Forum)

In a panel discussion on financing models that can promote social equity by leveraging inclusive finance and philanthropy, Suvranil Majumdar, who serves as Managing Director and CEO for South Asia at the Global Development Incubator as well as South Asia/Programme Director at the Resilient Water Accelerator, shared RWA’s experience in Nigeria and Bangladesh. He described how RWA’s three-pronged, systems-level approach focused on markets, mechanisms and models is being deployed to mobilise funding to water resilience projects and initiatives by collaborating with public and private sector stakeholders through platforms such as the Lagos Water Partnership.

Other contributors brought insightful perspectives to the panel discussion, including:

· Louis Boorstin - Managing Director, Osprey Foundation (Moderator);

· Syed Husain Quadri – Director, Resilience & Climate Action Department, Global Practice and Partnerships, IsDB;

· Lesley Pories - lead Policy Analyst for Water Finance, WaterAid; and

· Dominic O’Neill – Executive Director, UN Sanitation and Hygiene Fund.

In his remarks during the session on ‘Blended Finance Mechanisms for Water’, RWA’s Senior Investment Manager, David Ikponmwen, emphasised the need for catalytic financing to be directed to sectors and projects where it is needed the most and where it can demonstrate additionality. He also highlighted the role of the enforcement of regulations and policies in inspiring investor confidence in water resilience projects.

Events such as this catalyze alignment and collaboration across public and private sectors to make finance flow faster to where its greatest impact can be felt, particularly in fragile and climate-vulnerable contexts. RWA thanks the OECD and Islamic Development Bank for convening such a crucial platform.