Stopping Water Leaks to Stop Money Leaks

January 28, 2019

The world is experiencing a global water crisis. More than 800 million people lack access to clean water and one factor that contributes to this water scarcity is the lack of investment in proper infrastructure or technology that draws water from rivers and other sources to households.


In 2018, Vietnam lost 22% of water before it reached households due to leaks and metering inaccuracies.  Such lost is referred to as non-revenue water (NRW). Aside from the adverse impact of NRW on the environment, it also creates negative economic implications. High volumes of NRW increase operational costs which lead to loss of profit. The Vietnamese government’s goal is to reduce NRW to 15% by 2025. To achieve this end, water companies in Vietnam must adapt proper financial models to bring sufficient private investments that can improve existing water infrastructures.


To address this issue, ASSIST joined hands with Investment Fund for Developing Countries (IFU), Grundfos, and Vietnam Water Supply and Sewerage Association (VWSSA), to form the Partnership of Blended Finance Models on NRW and Energy Consumption in Vietnam. Funded by P4G, an initiative of the Danish Government (Partnering for Green Growth and the Global Goals 2030), the partnership seeks to create systemic change by developing one or more innovative blended finance models focusing on NRW and energy consumption in water distribution networks using effective pressure management and pump replacement system.   Blended finance is a tool to pool in private sector financing for high-impact development projects.


The models will be piloted in Vietnam and eventually be applied to other countries in order to help achieve the 6th Sustainable Development Goal: Clean Water and Sanitation and the 7th goal: Affordable and Clean Energy.


ASSIST Project Manager Lien Huynh commented, “The partnership for this project has proved its strength by maximizing the resources of each partner: technical expertise, financial know-hows, connection with local ministries and administration of we are facing right now, I am excited about this project because challenges also present opportunities.”