The Blue Deal in action: The Dutch approach to Asset Management for achieving SDG6
Water and sanitation infrastructure is usually framed as a public service or a climate-resilience necessity, but it can also be viewed as a portfolio of long-lived public assets that societies must carefully manage across generations.
This article is based on a piece originally published on The Water Diplomat website.
As the recently published Global Water Bankruptcy report makes clear, many regions now face structural water challenges where water systems can no longer return to historical baselines. This calls for a reorientation in how water infrastructure is planned, financed, and managed. Yet a persistent imbalance sits at the heart of water infrastructure economics. Capital expenditure is visible, fundable, and politically attractive – while the ongoing work of operations, maintenance and renewal is often underprovided. An OECD study on financing water indicates that capital costs account for roughly half of total service provision costs – meaning that Operations and Maintenance (O&M) is not a marginal add-on, but a major share of the lifecycle cost of reliable service.
At the heart of this problem lies what the Dutch Water Authorities and their partners describe as the Build–Neglect–Rebuild (BNR) cycle. Water systems are constructed, then gradually neglected due to inadequate O&M, leading to premature deterioration and eventually costly reconstruction. The consequences extend far beyond higher long-run costs. Service disruptions undermine progress on Sustainable Development Goal 6 and erode public trust in water institutions.
The Blue Deal: towards effective asset management
In 2018, the Dutch Water Authorities (DWA), together with the Ministries of Foreign Affairs and Infrastructure and Water Management, launched the Blue Deal, an international programme working with partners in 15 countries towards clean, safe and sufficient water.
The Blue Deal’s approach covers the entire lifecycle of infrastructure assets. This lifecycle-based approach is also embedded in VEI (Association of Operators of Drinking Water Infrastructure, representing the Dutch drinking water companies), Partners for Water, and VNG International, which each play a distinct but complementary role in strengthening asset management, governance, and the institutional foundations needed for long-term infrastructure performance.
Aligned interventions in Mozambique
Breaking the BNR cycle requires more than isolated projects or single actors. In Mozambique, Dutch Water and Municipal Organisations are working in close alignment towards a shared objective: addressing the governance, financial, and asset-management weaknesses that cause water infrastructure to deteriorate long before the end of its design life.
Making O&M financially viable
Alongside these efforts, VNG International and Partners for Water tackle a key governance bottleneck: financial sustainability. VNG International focuses on strengthening local revenue systems, while Partners for Water develops a sustainable land administration system, providing reliable property information to help the municipality increase its own-source revenues. As a result of these combined efforts, property tax revenues have increased by more than €1.6 million, with a substantial share earmarked for the operation and maintenance of water-related infrastructure.
Strengthening institutions, not just infrastructure
Technical improvements are reinforced through sustained institutional strengthening. Blue Deal experts support SASB in clarifying roles, building technical capacity, and estimating realistic long-term O&M funding needs.
In parallel, VNG International has facilitated structured round-table dialogues with national institutions, the Municipality of Beira, and international partners, including the World Bank and the EU Delegation. These sessions provide a platform to jointly analyse bottlenecks and develop coordinated approaches to sustainable O&M in Beira.
Data and digitalisation as enablers of stewardship
Reliable asset management depends on knowing what exists, where it is, and in what condition. In Mozambique, VEI supports the national Administration for Water and Sanitation Infrastructure (AIAS) in adopting mWater, a digital platform for asset management. A 2025 proof of concept demonstrated that local operators can collect asset data autonomously, even offline, while providing national authorities with a consolidated overview of assets, maintenance needs, and operational risks. The next step is scaling up to other systems and establishing a dedicated support unit within AIAS.
Engaging communities through locally led approaches
Breaking the BNR cycle also requires governance reform that is locally led and socially embedded. In Beira, community-based maintenance activities supported through the Blue Deal enable local residents to take an active role in cleaning and maintaining drainage canals. These efforts reduce flood risks while strengthening local ownership and accountability. Crucially, such locally led interventions connect community action to formal municipal systems, reinforcing the idea that sustainable infrastructure performance depends on both technical expertise and locally anchored stewardship.
Breaking the cycle
Breaking the BNR cycle is ultimately less about building more infrastructure and more about governing better: securing sustainable finance, managing assets over their full lifetimes, strengthening institutions, and embedding learning and adaptation into everyday practice. Progress emerges when municipalities, national authorities, utilities, communities, and international partners work in alignment. The experience in Mozambique illustrates how Dutch water sector organisations, together with local partners, combine their strengths to address different dimensions of the BNR cycle simultaneously.
To enable this at scale, politicians and decision-makers may need to reconsider how they approach infrastructure investments, valuing longevity and lifecycle performance as much as new construction. When sustainable financing, clear governance, institutional capacity, and community participation come together, water infrastructure can deliver the long-term value it is designed for, supporting resilient, equitable and sustainable services for generations to come.
