Free Flow

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inancing

ooperation

Science is therefore one of the most relevant governance instruments

for the Water Fund. It helps coordinate private and public resources,

define common interests, and promote strategic cooperation.

Some of the challenges that FAMM faces are directly associated

with the complex relationships between the different parties and

groups involved in the Water Fund, as well as their individual

motives. In 2010, for example, Monterrey was hit by hurricane

Alex. This caused widespread flooding, which devastated the city

and resulted in millions of dollars’ worth of damage. Stakeholders

got together in different groups and tried to tackle the immediate

problem in different ways, with varying degrees of success. Three

years later, the city is experiencing one of the worst droughts in its

history. Again, stakeholders are having to act quickly to find the best

solution to help affected communities.

FAMM helps various stakeholders come together to draw up a long-

term vision, which also takes into account management of short-term

issues such as catastrophic flooding or drought. The science-based

actions ensure that the best interests of the watershed are always

FAMM’s first priority. The Water Fund serves as a common ground

for different sectors to come together, negotiate and define key objec-

tives, and then work together in a transparent manner.

By involving external consulting agencies, such as

Baker&McKenzie and KPMG, the Water Fund aims

to demonstrate that it is managed through secure

and transparent financial mechanisms that can be

sustained in the long term. The involvement of these

world-class firms helps to build trust among contrib-

utors to the Fund and improve cooperation between

them. To demonstrate that it is operating in the most

effective manner and that the objectives of the key

stakeholders are being met, FAMM also carries out

annual audits of its internal processes. Transparency

and accountability mechanisms such as the ones

mentioned before help strengthen the main goal of

FAMM’s governance structure: sustainable coopera-

tion in the long-term.

FEMSA Foundation is currently working together

with TNC and IDB to develop organization and opera-

tion manuals to define the operation of FAMM and

to ensure that the Water Fund continues to protect

natural resources in a sustainable manner for the

benefit of us all.

Initiatives supported by FAMM include ditch construction in the Canoas community