Private sources of finance are pivotal for water safety and water security worldwide. This is why NWP and FMO NL Business renewed their Memorandum of Understanding (MoU) and celebrated FMO’s official membership of NWP during the Amsterdam International Water Week (AIWW) Summit on 15 November 2018. The collaboration’s roots lie in the signing of an Amsterdam Agreement at the AIWW 2017. One of the outcomes of this collaboration is a market analysis on the financing needs of the Dutch water sector that identifies 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 the first in its kind. Its goal is to help the Dutch water sector increase its impact abroad. 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 stimulate further coordination between ministries, the Dutch water sector and financiers.
Aart Mulder explains why the MoU is important. “This new MoU unites NWP’s strength as a network organisation and FMO’s NL Business activities to collaborate on developing and financing water initiatives. The goal is to work on projects in emerging markets using Dutch expertise and while doing so, contribute to Sustainable Development Goal 6 (clean water and sanitation). The close cooperation between both institutions has already given rise to 27 water projects under review in the pipeline.”
FMO and NWP renewed their collaboration in 2018
Various finance institutions that are interested in water related projects and initiatives, seem to struggle to fill their pipelines. It is not so much a lack of money as a lack of bankable projects. FMO and NWP explored the underlying factors and how they can be overcome. The findings were presented at the AIWW Summit in Rotterdam and will be further finetuned and tested with other Dutch financiers.