Netherlands, EIB Expand Support For Water Projects In Developing Countries

Posted by Eric Ojo Europe, Latest Headlines Tuesday, March 22nd, 2022

(AFRICAN EXAMINER) – The Dutch government and the European Investment Bank (EIB) are poised to scale up their investment in the water and sanitation projects in developing countries.
The Dutch government has agreed to provide additional €25 million of new support for the Water Sector Fund which is managed by EIB, a long-term lending institution of the European Union (EU) owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
The impact of new water investment in developing countries by the EIB, the world’s largest international financier for water projects, will be enhanced by an extended scope of the Water Sector Fund as demonstrated by the Dutch government.
Since its creation the Water Sector Fund has provided technical assistance for projects to increase water supply, improve sanitation and strengthen the resilience of water infrastructure to a changing climate. Moreover, the Fund will now also benefit from an extended scope by using financial instruments such as guarantees to mobilise private sector investments for sustainable water development goal – SDG 6.
It has also supported water investment across Africa, including investment to improve access to drinking water in Niger, using solar power to supply water in Malawi and to better protect coastal communities in Sao Tome and Principe.
Interestingly, over the last decade the EIB has provided EUR 32 billion for long-term water investment around the world. The replenishment will enable the EIB to make water projects more sustainable, improve climate resilience of infrastructure and help mobilise additional funding from other financiers or investors.
This was disclosed at the World Water Forum in Dakar. Press statement by the management of EIB, also disclosed that the Dutch Special Envoy for International Water Affairs and the Bank’s Vice President confirm strengthened cooperation between both parties.
Special Envoy for International Water Affairs of the Netherlands, Henk Ovink said safe water and sanitation is essential for a healthy and dignified life and economic and social development, adding that sharing knowledge, experience and innovation is crucial to increase sustainable access to safe water, to protect people and infrastructure from flooding, and to address water scarcity.
“The Water Sector Fund combines the unique commitment of the Netherlands to address global water challenges and the extensive experience of the European Investment Bank investing in water worldwide. The expanded Water Sector Fund will enable us to make water and sanitation projects more sustainable and inclusive and help mobilise additional funding from other financiers or investors”, he said.
Similarly ,EIB Vice-President in charge of development and climate action, Ambroise Fayolle observed that investing in safe water and sanitation is investing in a better future for people and our planet. He also noted that the Water Sector Fund has shown how technical expertise can enhance water investment to increase access to water in conflict zones, regions impacted by drought and fragile coastal communities.
“The EIB welcomes the €25 million backing by the Dutch government to scale up the Water Sector Fund that will increase the impact of water investment to benefit fragile regions in the years ahead”, he stressed.