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FINANCING COOPERATIONImage: © Cuencas y CiudadesInitiatives supported by FAMM include ditch construction in the Canoas communityScience is therefore one of the most relevant governance instrumentsfor 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 associatedwith the complex relationships between the different parties andgroups involved in the Water Fund, as well as their individualmotives. In 2010, for example, Monterrey was hit by hurricaneAlex. This caused widespread flooding, which devastated the cityand resulted in millions of dollars’ worth of damage. Stakeholdersgot together in different groups and tried to tackle the immediateproblem in different ways, with varying degrees of success. Threeyears later, the city is experiencing one of the worst droughts in itshistory. Again, stakeholders are having to act quickly to find the bestsolution to help affected communities.FAMM helps various stakeholders come together to draw up a longtermvision, which also takes into account management of short-termissues such as catastrophic flooding or drought. The science-basedactions ensure that the best interests of the watershed are alwaysFAMM’s first priority. The Water Fund serves as a common groundfor different sectors to come together, negotiate and define key objectives,and then work together in a transparent manner.By involving external consulting agencies, such asBaker&McKenzie and KPMG, the Water Fund aimsto demonstrate that it is managed through secureand transparent financial mechanisms that can besustained in the long term. The involvement of theseworld-class firms helps to build trust among contributorsto the Fund and improve cooperation betweenthem. To demonstrate that it is operating in the mosteffective manner and that the objectives of the keystakeholders are being met, FAMM also carries outannual audits of its internal processes. Transparencyand accountability mechanisms such as the onesmentioned before help strengthen the main goal ofFAMM’s governance structure: sustainable cooperationin the long-term.FEMSA Foundation is currently working togetherwith TNC and IDB to develop organization and operationmanuals to define the operation of FAMM andto ensure that the Water Fund continues to protectnatural resources in a sustainable manner for thebenefit of us all.[ 169 ]