AFD & Water in the Mediterranean: Supporting the sustainable management of an endangered resource

The Mediterranean area covers three continents and is home to a whole host of different identities. AFD has defined a specific development strategy for this area in line with the European Neighbourhood Policy. Water is a core element of this strategy, as an emblematic topic for sustainable and equitable development in the region.

AFD has been financing projects in the Maghreb (Morocco, Algeria and Tunisia) since 1992 and has been gradually extending its operations to Egypt, Jordan, the Palestinian Autonomous Territories, Lebanon and Turkey and is soon to operate in Syria. AFD’s operations aim to strengthen growth in the South Mediterranean economies and help forge links with North economies.They also aim to foster social cohesion, reduce factors of conflict and promote the sustainable development of the Mediterranean Basin which is a global public good.

AFD Group commitments in the Mediterranean-Middle East region have been growing sharply (1.13 billion euros in 2007) and account for some 40% of AFD’s annual commitments in foreign countries. Operations are mainly conducted via loans, except for the case of crisis and post-crisis countries (Palestinian Territories which benefit from grants and €375M of budget support to Lebanon in 2007) and short-term support for specific sectors. The water sector (including sanitation and agricultural water) is one of the main beneficiaries of this financing.

AFD today operates in over sixty developing countries and in all France’s Overseas Local Authorities via a wide range of financial instruments from grants to market condition loans. It also contributes, in collaboration with its supervisory authorities, to public policy design and France’s influence in the development world.

AFD commits, in all its activities, to promote the Millennium Development Goals, at the crossroads of imperatives such as economic growth, poverty reduction and sustainable development which are priorities for France’s official development assistance. AFD commitments in 2007 totalled 3.5 billion euros.