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Innovative Finance in the Water and Sanitation Sector

Joel Kolker's picture

The World Bank at World Water Week 2015

As the global focus shifts to the Sustainable Development Goals (SDGs), and achieving universal access to water and sanitation, there will clearly be a need to mobilize private capital to help finance the necessary infrastructure. The Global Water Practice at the World Bank has been working with key public and private sector partners in over ten countries to mobilize domestic credit and address operating inefficiencies which negatively impact on the delivery of water and sanitation. To scale up (“billions to trillions”) it will be necessary to consider the incentives needed to attract and sustain such capital flows.

Moving toward universal, quality water and sanitation services

Junaid Kamal Ahmad's picture

The World Bank at World Water Week 2015

Access to sanitation lags behind access to water. Quality of service is poor, with intermittent supplies, continuing environmental degradation, and financially weak service providers. Moreover, future water availability is not guaranteed. Uncertainty about water resources will most profoundly affect poor populations, who often live in disaster-prone areas such as overcrowded settlements and low-lying deltas. Water variability will also strongly impact providers’ ability to maintain adequate quality and quantity of services.

There is no universal solution to these challenges, but the World Bank sees them under three broad areas: governance, finance, and capacity.

How Countries Can Improve Access to Water for Women

Bhuvan Bhatnagar's picture
Because of water’s multidimensional role in economic development and poverty reduction, addressing the constraints that women and girls face in accessing and managing water is essential for achieving impact. 

Challenges of gender inequality in water include:
  • Women are disproportionately underrepresented in water sector decision making at many levels.
  • Women and girls are often charged with domestic water collection, disadvantaging other spheres of life, such as education.
  • Men benefit disproportionally from economic opportunities generated by the capital-intensive nature of water development and management.
  • Women and girls have specific sanitation needs, both for managing menstruation and for protection against gender-based violence. 

Transboundary Water Cooperation Helps Build Climate Resilience

Jacqueline Tront's picture
The World Bank at World Water Week 2015

Water does not respect geopolitical boundaries. Hydrological systems are completely oblivious of international relations. This makes life complicated for the water managers, financiers, diplomats, and most of all – the water users around the world’s approximately 276 transboundary river basins, 63 of which are in Africa. Sixty percent of the world’s freshwater flows are in transboundary rivers, and 40% of the world’s population lives in their river basins. When water cuts across borders, it poses economic, financial, logistical and political challenges for people trying to manage and develop the resource.​

Climate change is
The Zambezi River Basin in Africa is shared
by eight countries: Angola, Botswana, Malawi,
Mozambique, Namibia, Tanzania, Zambia,
and Zimbabwe.
Photo Credit: CIWA / World Bank
increasing uncertainty about where and​ when water will​ be available. It is affecting billions of people living in transboundary basins, and as​ often happens, the poor are the hardest hit.​ There is a long list of potential problems people will face – supply in water-stressed regions will diminish; some regions are likely to have more water than they can handle; most challenging is the fact that​ the timing and amounts of future water availability are impossible to predict with certainty. Other risks - the increasing intensity of droughts, floods, typhoons, and monsoons; uncertainties around waterborne disease; glacier melt and decreased storage in snow-pack; glacial-lake outburst floods; sea-level rise and salt-water intrusion - all pose the highest risk to poor communities that are least able to cope.

How can we ensure that we build water and climate resilient cities?

Diego Juan Rodriguez's picture

The World Bank at World Water Week 2015

As population and economic growth bump up against finite—and increasingly degraded—water resources, competition between agricultural, industrial, and municipal water uses increases, putting stress on existing water sources. This stress is felt most acutely in urban areas, particularly among the urban poor.
Moreover, urban water management systems are inefficient, leading to an uneven quantity and availability of water and related services. In addition, urban water management must consider the effects of climate change, including rising temperatures, changes in precipitation patterns, and climate variability, on water resource availability.

Addressing these challenges requires building resilience not only in cities’ physical infrastructures but also in their social architecture, governance structures, financial systems, and ecosystems. A resilient city can adapt to changing conditions and withstand shocks while still providing essential services.

The case for solar water pumps

Richard Colback's picture

The cost of solar technology has come down, way down, making it is a viable way to expand access to energy for hundreds of millions of people living in energy poverty. For farmers in developing countries, the growing availability of solar water pumps offers a viable alternative to system dependent on fossil fuel or grid electricity. While relatively limited, experience in several countries shows how solar irrigation pumps can make farmers more resilient against the erratic shifts in rainfall patterns caused by climate change or the unreliable supply and high costs of fossil fuels needed to operate water pumps. Experience also suggests a number of creative ways that potential water resource trade-offs can be addressed.

Water: At a Tipping Point

Junaid Kamal Ahmad's picture

The World Bank at World Water Week 2015

The Stockholm World Water Week’s focus on “Water for Development” comes at an opportune time. Water as a sector in world affairs is reaching a tipping point. Over the next two decades and more, the global push for food and energy security and for sustaining urbanization will place new and increasing demands on the water sector. 

Ours is a world of ‘thirsty agriculture’ and ‘thirsty energy’ competing with the needs of ‘thirsty cities.’ At the same time, climate change may potentially worsen the situation by increasing water stress as well as extreme events, reminding us that the water and climate nexus can no longer be a side event at global climate talks. All of this is happening in a context where the important agenda of access to services – despite the impressive gains over the past several decades – remains an unfinished agenda, requiring an urgent push if we are to fulfill the promise of universal access.

5 potential benefits of integrating ICTs in your water and sanitation projects

Fadel Ndaw's picture

A new study was recently carried out by the Water and Sanitation Program (WSP) of the World Bank on how to unlock the potential of Information and Communications Technology (ICTs) to improve Water and Sanitation Services in Africa[1]. According to a Groupe Speciale Mobile Association (GSMA) report[2], in 2014 52% of all global mobile money deployments were in Sub Saharan Africa and 82% of Africans had access to GSM coverage. Comparatively, only 63% had access to improved water and 32% had access to electricity. This early adoption of mobile-to-web technologies in Africa provides a unique opportunity for the region to bridge the gap between the lack of data and information on existing water and sanitation assets and their current management — a barrier for the extension of the services to the poor.

Innovating through the 'valley of death'

Kristoffer Welsien's picture
Water flow sensor tested in rural Tanzania.
​Photo credit: WellDone

In December 2013, I was excited to receive funding through an Innovation Challenge Award to pilot water flow sensors in rural Tanzania, where the sustainability of rural water supply is a major development challenge. Approximately 38% of rural water points are not functioning properly. The sensor we wanted to develop would remotely monitor flow, making it easier to deliver operational information to the Ministry of Water’s water point mapping system.

The pilot brought one of the first 3D printers to Tanzania and we connected the American start-up WellDone International to the local non-governmental organization (NGO) Msabi. The project team implemented the gadget effectively, and my colleagues at the Water and Sanitation Program (WSP) and I navigated the procurement and implementation challenges. The pilot ended successfully in June of 2014 and we were proud of our achievement in bringing an innovative ICT solution to the Tanzanian rural water sector.