Expertise: water resources
Expertise Group: Agriculture/Rural Development
Consultant Source: National
TOR Keywords: water resources, water fund structuring
Objective and Purpose of the Assignment
The TA will assist the National Development and Reform Commission (NDRC) in developing eco-compensation
mechanisms for watershed sustainability in Gansu and Fujian Provinces. The eco-compensation mechanism
would be targeted at drinking water to the designated provinces. In addition, the TA will focus on
potential options to sustainably structure the payments mechanisms including with private sector
participation and use of capital market instruments. The governance structure of the water fund would
also be examined. Finally, the eco-compensation framework and the water fund will include gender
elements to ensure gender equity in compensation payments and gender and climate justice.
Scope of Work
The expert will support the international consultant and develop a business plan for water funds,
including funding and investment options for long-term sustainability. The specialists will also provide
guidance in the internal governance framework for the water fund(s) to ensure the alignment of
incentives with the long-term sustainability of water fund mechanisms.
Detailed Tasks and/or Expected Output
The detailed tasks are provided below:
(i) Study international experiences on sustainable water fund options;
(ii) Examine options for water find investments, including in equity and PPP-type arrangements;
(iii) Suggest applicability of the use of bond instruments and full and partial guarantees;
(iv) Include an analysis of the potential use of sovereign funds to partially secure commercial
borrowings;
(v) Develop financial; model and business plan and funds leveraging potential for water funds;
(vi) Provide guidance on use of water fund compensation payments in income generation activities;
(vii) Provide guidance on an internal governance structure to enhance the functionality of water funds;
(viii) Undertale policy dialogue with NDRC and other stakeholders on lessons and applicability of said
lessons in designated provinces;
(ix) Coordinate with the eco-compensation specialist to integrate eco-compensation framework in the
water fund structure;
(x) Participate in knowledge workshops and contribute to workshop proceedings.
Minimum Qualification Requirements
The expert will have a minimum university degree in water resources, hydrology, agricultural or civil
engineering, preferably with complementary training/work experience in other subject areas in rural
development or other related fields. International experience working in development in several
countries or with other international organization is desired.
Minimum General Experience: 10 Years
Minimum Specific Experience (relevant to assignment): 7 Years
