Mexico City Water Fund Strategic Plan VERSION 1 2 January 2018 Mexico City Water Fund Strategic Plan Contents 1. Primer: Water Security, Water Funds & LAWFP Purpose 2. Context & Strategy The purpose and objective of this 5 Year Plan is to: 3. Mexico City WF’s Vision, Mission, Values & Principles 1. Create Direction – Documenting and providing 4. Critical Obstacles/Risks To The Vision & Mission a framework to evolve important strategic choices made by Water Fund leadership 5. Interventions 6. Stakeholder Engagement & Communications 2. Establish Results-Oriented Approach – Aligns activities of the Fund with key water security 7. Resource Requirements challenges and targeted interventions that 8. Finance enable the potential for greater impact 9. Implementation Roadmap 3. Clarify The WF’s Value Proposition – Helping to 10. Updating The Strategic Plan secure interest and resources need to sustain the WF over the long-term 11. Supplemental & Supporting Information 1 1. Primer: Water Security, Water Funds & LAWFP Mexico City Water Fund Strategic Plan Water Security Societies can enjoy water security when they Domestic Water Security comprehensively and successfully manage their satisfy household water and sanitation needs water resources and services to: in all communities • Restore healthy rivers, aquifers and ecosystems; Resilience To Water Economic Water • Satisfy household water and sanitation needs in Related Natural Security Disasters support productive all communities; build resilient communities economies in agriculture, that can adapt to climate Water industry, and energy • Support productive economies in agriculture, change Security industry, and energy; • Develop healthy, vibrant, livable cities and towns Environmental Water Urban Water Security with a solid water culture; Security Develop healthy, vibrant, restore healthy rivers, livable cities and towns • Build resilient communities that can adapt to aquifers and ecosystems with a solid water culture climate change Based on ADB´s definition 3 Water Funds & How They Help Offer an attractive vehicle for pooling resources to invest cost- Are organizations that design effectively in source watersheds. and enhance financial and Develop a shared and Contribute with scientific feasible vision of water evidence to improve governance mechanisms that knowledge around water security. articulate public, private and security. civil society stakeholders, with the goal of contributing to Positively influence water- Encourage and drive related governance and implementation of natural water security through nature- decision making. infrastructure and other innovative projects at the based solutions and sustainable basin level. watershed management. Convene different stakeholders to generate political will and enable meaningful and positive impact on scale through collective action. 4 What Is The LAWFP? The Latin American Water Fund Partnership The Partnership supports the (LAWFP) is a collaboration between the selection, design and management Inter-American Development Bank (IDB), of Water Funds, bringing: the FEMSA Foundation, the Global • Defined Processes & Best Practice helping Funds identify/address Environment Facility (GEF) and The Nature local water security challenges; engage w/key stakeholders; Conservancy (TNC) to contribute to implement impactful interventions and assure the long term viability improved water security in Latin America of these institutions and the Caribbean through the creation and strengthening of Water Funds • Tools & Templates to enable structured, efficient and effective WF development and operation • Resources to help WFs establish their platform as a credible, influential and impactful entity that helps improve regional water security 5 2. Context & Strategy Mexico City Water Fund Strategic Plan Overview START 7. What resources are 1. What are Mexico City’s 6. How should we start required and how main water security and what results should will progress be challenges? be anticipated? monitored/measured? 8. What is the vision of 2. What happens if these 5. What strategy would be long term success for challenges are not practical and have real the City and the Water addressed/solved? impact at scale? Fund? 4. How can the Water 3. Who’s concerned about Fund best contribute to these challenges and PLAN DETAILS improved water their consequences? security? 7 What Are Mexico City’s Main Water Security Challenges? Operational & Administrative Floods Over-Exploitation & Subsidence (In 10 years the flood (Deficit of ≈ 700M M3/yr) Inefficiencies (≈ 40% of water is lost by leakage) probability will increase 30%) Insufficient Supply & Sanitation Wastewater Networks (≈ 40% of wastewater is treated and there (≈ 2 million people have no is low reuse rates) access to service) 8 What If These Problems Are Not Addressed/Solved? Economic Impact Environmental Impact Social Impact • Associated costs continue to • Further development leading to • Increased health impacts related to increase due to: more overexploitation and aquifer floods, water-borne disease and • Needs for importing more water damage pollution with significant economic, • Further soil and groundwater • Without adequate supply and environmental and social costs contamination sanitation networks, social stress • Further subsidence and damage • Less resilience to climate change will likely increase, affecting to infrastructure proportionately more the poorest • Loss of natural vegetation and and most vulnerable segments of • Continued flooding and ecosystem functionality in the society. associated damage Conservation Area • Less nature, lower quality of life, • An unsustainable financial • Faster runoff and more damaging increased vulnerability to water system with insufficient floods investments shocks, loss of livelihoods. • Growth and economic productivity stagnation that is not sustainable financially 9 Who’s Concerned About These Challenges/Consequences? More than 100 identified stakeholder groups concerned Population of More than about these >20 Million problems But No Clear w/in the largest metropolitan area in Central Platform Latin America facing water scarcity where stakeholders can convene & collaborate on comprehensive solutions/optimum path forward 10 How Can WF Interventions Help? Over-Exploitation & Reduce the dependence on underground water supply Subsidence Operational & Administrative Build capacity to increase the efficiency of the Water Utility Inefficiencies Floods Develop natural and gray infrastructure projects to reduce floods in Mexico City Insufficient Supply & Gain influence with relevant stakeholders to promote investment in the Sanitation Networks expansion of the supply network Initiatives and related policies that increased investment in wastewater Wastewater treatment and wastewater reuse technologies 11 What’s A Practical Strategy For Real Impact? WATER FUND’S STRATEGY Mexico City Water Fund will first build a reputation as a credible entity that can help enhance the region’s water security. Once established as relevant contributor, the Impact @ Scale WF will increase its ability to influence public policy, mobilize stakeholders and contribute to water governance, ultimately unlocking the potential to create significant Influence impacts at scale. Credibility 12 Translating Strategy Into Action In the first stage, the focus will be on convening and This will be accomplished by organizing the establishing the Water Fund: Fund’s work* into 4 broad areas of action: Credibility As a credible contributor to improved water security gaining social and political capital with relevant and influential actors Integrate Execute Influence As a formal participant in relevant decision-making and governance processes with evidence of success in influencing water security-related public policy Articulate Transcend Impact @ Scale As an entity that has demonstrated, through pilot or small-scale projects, that it can have a significant positive impact on water *Work means primary activities of the Water Fund, namely stakeholder engagement, intervention implementation and security in Mexico City efforts required to operate in a sustainable manner 13 Aims Of These Actions: Objectives & 5 Year Goals Integrate STRATEGIC OBJECTIVE To assemble and organize influential and trusted stakeholders to support the Water Fund. Be a central collaboration forum and a leading entity to help Integrate Execute improve water security in the region. This includes encouraging stakeholders from all sectors to participate as partners, promoters or allies of the Fund. 5 YEAR GOAL To have a ‘critical mass’ of influential and publicly trusted organizations formally participating at various levels within the Fund, with an appropriate Articulate Transcend balance of private companies, academia, NGOs and public sector institutions represented. 14 Aims Of These Actions: Objectives & 5 Year Goals Execute STRATEGIC OBJECTIVE To execute highly visible natural infrastructure and other projects that demonstrate the WF’s ability to create positive impacts on water security in Integrate Execute the region. 5 YEAR GOAL Achieve project-specific targets associated with relevant interventions () including saving/restoring conservation land (e.g., Topilejo project, helping recovery in the Chapultepec Forest), demonstration natural infrastructure Articulate Transcend effectiveness in improving recharge/resiliency (i.e., water parks to control floods) and other visible projects that help improve water security. 15 Aims Of