The United Nations Capital Development Fund (UNCDF) and the Ministry of Environment (MoE) of the Republic of Korea signed a Memorandum of Understanding (MoU) in Seoul to formalize their partnership on climate change adaptation projects, specifically water resource management, to help build climate-resilient communities in Least Developed Countries (LDCs).

Under the MOU, the technical quality of water projects will be ensured through cooperation with K-Water, the specialized water agency of the MoE. UNCDF will help build the capacity of local governments to manage public finances and deliver services, including infrastructure, to citizens in the LDCs.

“UNCDF is glad to advance our cooperation with the Korean Ministry of Environment to support developing countries,” said UNCDF Executive Secretary Judith Karl. “As one of the few countries that has transitioned from being a recipient of official development assistance to being a donor, the Republic of Korea has many valuable lessons to share with developing nations. This MOU will allow UNCDF to bring the Ministry of Environment’s specialized expertise in water resources management to LDCs to build local government capacity on issues including preventing floods and providing clean water to rural communities.”

The first project under the MOU will be a pilot on water services in a rural area of Cambodia’s Battambang Province. The pilot will be conducted with UNCDF’s LoCAL programme, which supports local governments in LDCs to make investments in climate-resilient infrastructure.

“We highly appreciate the UNCDF’s effort to expand the scope of the water-related agenda in developing countries,” said Hajoon Park, Assistant Minister of the Ministry of Environment. “The Korean government will also actively cooperate, support and provide specialist assistance, including on the cooperative project of water supply in Cambodia. We expect that Korea’s water management experience can help enhance capacity building for local governments in developing countries.”

MOE’s mission is to raise awareness about the importance of water management, encourage and strengthen close cooperation in water related policy pursuing UN’s Sustainable Development Goals (SDGs), management and other matters regarding water on the basis of mutual interest by sharing its experiences, providing support, sharing resilience approaches and cooperation in relation to public policy, laws, system, scientific technology, development activity, operation/management in the field of water management such as Smart Water Management (SWM) and Integrated Water Resources Management (IWRM).

UNCDF and the MoE will enhance their development activities by supporting development activities on water resource management in LDCs; networking and stakeholder engagement; knowledge management, communication and outreach; capacity building; and resource mobilization.

UNCDF makes public and private finance work for the poor in the world’s 47 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through two channels: financial inclusion that expands the opportunities for individuals, households, and small businesses to participate in the local economy, providing them with the tools they need to climb out of poverty and manage their financial lives; and by showing how localized investments—through fiscal decentralization, innovative municipal finance, and structured project finance—can drive public and private funding that underpins local economic expansion and sustainable development. By strengthening how finance works for poor people at the household, small enterprise, and local infrastructure levels, UNCDF contributes to SDG 1 on eradicating poverty and SDG 17 on the means of implementation. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a number of different SDGs.