Case

The Partnership for Blended Finance on Water

As in many countries, water leakage is a huge challenge in Vietnam.

In 2018, the P4G initiative supported a start-up partnership analysing how financial models could be developed to start investments in modernising the drinking water infrastructure in Vietnamese water companies.

The Partnership for Blended Finance on Water focused on investments in pressure management technologies with the aim to reduce non-revenue water from 22 per cent today to 15 per cent in 2025 while at the same time reducing  energy consumption. IFU developed the blended finance model. Encouragingly, the conclusions of the feasibility study found that for many water companies, investing in pressure management technology provides enough savings in energy costs and water leakage over a five-year period for the investment to be made through conventional financing. With investments, other companies can achieve water savings with a very short payback time.

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