Advancing private sector engagement in Integrated Water Resources Management

Abstract: Water represents a natural resource that is essential for humanity and the environment. Therefore, the framework of Integrated Water Resources Management (IWRM) seeks to combine social equity, ecological sustainability and economic efficiency for effective management of this critical resource. As the private sector is a major water user it represents an important stakeholder in sustainable water resources management. However, a quarter of countries reported a low level of private sector engagement in IWRM in the last SDG indicator 6.5.1 survey. Therefore, this thesis identifies obstacles to private sector engagement in IWRM and proposes interventions to improve the involvement of the private sector in water resources management. For this, it applies models for participatory approaches to the topic of private sector engagement. As water stewardship represents another approach for the private sector to get involved in sustainable water resources management, this concept is analysed as a possible alternative or complement to private sector engagement in IWRM. The first six expert interviews provided insight into general perspectives of the topic and then two case studies in Kenya (three interviews) and Viet Nam (five interviews) were used to understand private sector engagement in a country context. These case studies are further supported by secondary data from the SDG indicator 6.5.1 survey which analysed the degree of private sector engagement in IWRM across 171 countries. The research results suggest that topics of financing, innovation, the private sector’s convening power, its role as a major water user and its influence across the whole value chain represent opportunities of private sector engagement in IWRM, similar to the general benefits of participatory approaches. Furthermore, this research identifies several obstacles of which a lack of capacity, the complexity of the concept of IWRM, the complexity of government structures, data and information sharing, and a missing business case were considered the most important. For these topics, the thesis suggests several enabling factors that would improve private sector engagement. In the discussion, the relationship between IWRM and water stewardship is further explored as these two concepts can complement each other to provide new opportunities for private sector engagement. The research concludes that there is a need to redefine the concept of IWRM or to consider new approaches for sustainable water resources management to engage the private sector successfully.