Digital Solutions for Water
Blended Finance on Water addresses Vietnam’s drinking water infrastructure by developing blended finance models for greater investment in the sector.
P4G provided this partnership with US $100,000 in catalytic grant funding.
The partnership piloted technical and blended finance models to affordably reduce non-revenue water losses – water that has been produced and is "lost" (for example, through leaks or metering inaccuracies) before it reaches the customer – from water utility companies. Blended Finance on Water focused its investment on technologies and practices that will reduce the percentage of non-revenue-generating water from 22% to 15% by 2025, which in turn reduces energy consumption. The partnership collaborated with the Vietnamese Water Supply and Sewerage Association, ASSIST, Grundfos and the Danish Investment Fund for Developing Countries (IFU) to develop its blended finance models.
Upon close of the P4G funding period, the partnership successfully developed the "Blended Finance Model to Reduce Non-revenue Water and Energy Consumption in Vietnam" Report and set the direction for other countries working on non-revenue water issues. The study found that investing in pressure management technology – which controls pressure within the water network to avoid hazardous water pressure fluctuations – provides enough savings in energy costs and water leakage over a five-year period that the investment could be made through conventional financing rather than requiring public financing, loans or international grants.