Free Flow

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inancing

ooperation

cent of all water required by the city. They participate

in either a promoting or technical group, based on their

expertise, interests and contribution to the Water Fund.

The promoting group works closely with all the parties

involved in the watershed, including public and private

stakeholders, to provide expertise, knowledge and

resources to the Water Fund. The technical group are

tasked with creating sound action plans for conservation

purposes, ensuring that investment decisions align with

the conservation and management plans, programmes

and conservation projects in the watershed.

Taking into account all the different interests and

opinions of the involved parties can be a challenge,

especially when it comes to defining common goals.

Scientific factors can be useful in this respect, as they

define the most important needs of the watershed and

highlight key environmental issues – such as water

supply and the impact of natural disasters. With this in

mind, FAMM’s stakeholders have agreed on the follow-

ing environmental-related goals:

• Flood control: the target is to lower peak flow

in the upper watershed by as much as 750 cubic

metres per second during extreme events. This will

prevent natural disasters in the city basin, which

have increased in Monterrey in recent years as a

result of climate change

• Water infiltration: the target is to increase the water

available for infiltration by reducing surface run-off

by at least 20 per cent.

Other goals to restore and conserve the watershed are set by

the stakeholder group, based on their expert assessments.

Promoting social awareness is also a key objective

for FAMM. Making citizens more aware of their impact

on the watershed can help to encourage responsible

behaviour and drive further sustainability initiatives

led by local communities. In addition, FAMM is keen

to highlight that parties that get involved with local

restoration and preservation field projects can receive

financial support from public authorities.

Science determines more than the strategic direction of

FAMM’s resources and efforts; it directly influences the

intervention plan of the Water Fund. Critical areas that

require intervention are identified and prioritized based on

scientific models to ensure the greatest returns on invest-

ment in terms of the environmental services provided.

Field actions are also defined based on these strategies.

In addition, science factors provide a compelling

argument for the execution of public resources in

accordance with FAMM’s strategic plan, as they dictate

what conservation efforts will be most effective. In

general, demand for resources far exceeds what’s actu-

ally available. Usually, FAMM can only offer around

ten per cent of the required resource per year to work

with, meaning that all activities and initiatives need

to be carefully prioritised. It’s worth noting that the

Water Fund itself should also be looking to gain addi-

tional resources from other parties, such as government

bodies and other local stakeholders.

The Latin American Water Funds Partnership has already begun

developing a governance structure to promote regional coopera-

tion and align efforts and resources for the effective, large-scale and

efficient conservation of watershed in the region. Although some

Water Funds and related initiatives are already up and running, the

partnership expects this governance structure to further improve

existing activities and strengthen the impact of new Water Funds

in the future.

The partnership recognises that, as with any initiative where

several stakeholders are involved to achieve a common goal, it is

very important to determine the Water Fund’s structure, define

the responsibilities of each stakeholder and manage individual

expectations. Ensuring everybody is involved in decision-making

is key – whether they are providing seed capital or other assets/

resources to the Fund. Including public authorities is very impor-

tant, as watershed is a public resource – but this can be complex,

especially when they are subject to political influences and electoral

cycles, which can jeopardise long-term efforts. Given the number

of parties that can be involved, as well as their different motives for

contributing to a local Water Fund, it’s important that participation

incentives are also governed. Ultimately, the structure, or institu-

tional arrangement, of a Water Fund should be tailored according

to local requirements.

Metropolitan Water Fund of Monterrey

Located in northeast México, Monterrey is an industrial city charac-

terized by a thriving private sector, involved public authorities and

social organizations that are passionate about natural conservation.

The MetropolitanWater Fund (FAMM using its Spanish acronym) has

19 stakeholders, representing private companies, public institutions,

non-profit organizations and academia. All of them have interests in

and influence on the local San Juan watershed, which provides 80 per

Monterrey, Nuevo León, Mexico

Monterrey, capital city of Nuevo León, Mexico, has experienced numerous cases

of flooding and drought throughout its history