November 29th, 2013 AFD Presentation & focus on Financing of Water / IRWM projects David WILLECOMME

Topics AFD General presentation Water & Sanitation Potential collaboration in Turkey

AFD spearheads France’s development aid actions €7 billion of new funding in 2012 AFD counts as one of the world’s main development finance institutions AFD is renowned for: its ability to mobilize French expertise, its effective partnerships, its contribution to international discussions about aid issues, its presence in the field. 3

4 Activity in more than 70 countries

€7 billion for developing and emerging countries and France’s Overseas Provinces

Water a priority sector for AFD For the period , AFD aims to commit €600m every year to water and sanitation

AFD focus on Water in the Mediterranean region promoting IWRM based on a more effective use, the concerted allocation of resources between uses via an economic approach and the mobilization of unconventional resources supporting sectoral policies thanks to capacity development, technical cooperation and setting up partnerships with other donors or through decentralized cooperation de-polluting the Mediterranean by improving sanitation, under the Union for the Mediterranean (UfM) and its H2020 Initiative. This sea is indeed threatened by the discharge of untreated urban wastewater, which has environmental, health and economic impacts

AFD focus on Water in Emerging countries recover and use greenhouse gases from wastewater treatment reduce the energy consumption of drinking water and sanitation services, particularly by fighting against network losses protect biodiversity thanks to the development and upgrading of sanitation systems preserve ecosystems that have been weakened by climate change, thanks to the sound management of water resources at the local and regional level

e.g. in COLOMBIA Integrated Water Ressource Management AFD is contributing (100 MUSD) to the establishment of an effective IWRM policy in Colombia thanks to budget support cofinanced with the Andean Development Corporation (CAF). This support includes a mechanism of progress indicators established jointly by the Colombian Government and AFD. Moreover, as part of its decentralized cooperation, the Adour-Garonne Water Agency has established an institutional partnership, which will allow exchanges between the French and Colombian IWRM models.

AFD’s activities at a glance in Turkey in Turkey since Total assets portfolio: > € 1 Billion 3 main missions in line with Turkish policies on climate change and environment: Ensure sustainable growth of territories by reducing carbon footprint Promote a rebalancing of territorial development Preserve regional public goods Partners: public sector: central government, State-owned companies/banks and local authorities private sector: banks and companies (via Proparco) Tools: AFD grants long-term loans on preferential conditions AFD finances studies and technical support for projects via grants 10

AFD and Turkey : Opportunity of collaboration on IWRM How to work together to support the current water reform in Turkey? Grant funds for technical cooperation can be utilized for institutional support through : knowledge sharing local capacity-building expert consultancy services Large capacity to mobilize French expertise: OIEau, private consultants and operators Loan to finance the implementation of an Action Plan on a Pilot River Basin Loan to the state (Treasury) Loan to the municipalities (SKI) Credit line to a bank 11

AFD and Turkey : Opportunity of collaboration on IWRM Technical Cooperation : Support the conversion of River Basin Action Plans into River Basin Management Plan Support the development of governing models for IWRM, organization of water users consultations, economic analysis (value for water) etc. Investments financing : Identify priority investments (Action Plan) in the river basin that could be financed with a loan River basin identified for collaboration Fields : flood, wastewater treatment plants, improvement of the level of service for water delivery, non revenue water, sewage sludge management; protection plans for water resources etc. Work in collaboration with other IFIs: World Bank & European Union (IPA funds) 12

The way AFD works Need of a request from the Turkish Treasury for the financing What matters: Transparency Quality and sustainability of the works : importance of the bidding process and selection criteria for the works High environmental and social standards (Support green economic growth) 13

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