The World Bank at World Water Week 2016
The global water community is gearing up for Stockholm World Water Week 2016. This year’s theme, “Water for Sustainable Growth,” comes at a critical time, as we are mobilizing to achieve the Sustainable Development Goals (SDGs), in which water plays an essential part.
It drives economic growth, supports healthy ecosystems, and is fundamental for life. However, water can threaten health and prosperity as well as promote it. Water-related hazards, including floods, storms, and droughts, are already responsible for 9 out of 10 natural disasters, and climate change is expected to increase these risks.
Over the next two decades and beyond, ‘thirsty agriculture’ and ‘thirsty energy’ competing with the needs of ‘thirsty cities’ will place new and increasing demands on the water sector. Over 4 billion people currently live in areas where water consumption is greater than renewable resources for part of the year – a number that will continue to increase.
As we shift our thinking from looking at water through its traditional components to placing water at the center of the development dialogue, new financial, economic, environmental, social, technical and other complex challenges and opportunities emerge for countries on the front lines.
The World Bank at World Water Week 2016
In Panama, a healthy economic climate and enthusiastic institutional support provided an ideal testing ground for the World Bank’s Infrastructure Prioritization Framework (IPF). The country’s GDP growth and economic buoyancy in 2014 motivated an ambitious public investment program, accompanied by a high number of infrastructure project proposals to the Ministry of Economics and Finance. Coupled with political commitment to narrow the deficit, Panama moved to implement select projects for a five-year strategic period.
Fresh water touches every part of daily life—from drinking water and sanitation, to agriculture and energy production. Unfortunately, for nearly half of the world’s population, water scarcity is a growing issue with devastating impacts to our communities, economies and nature. In the past, countries have primarily turned to more supply-side infrastructure, including reservoirs and canals, as solutions to increasing water demands. But we can no longer build our way out of scarcity. We must find ways to do more with less, and impact investment can provide a catalyst for revolutionary changes in water management.
Water markets can be a powerful mechanism for alleviating water scarcity, restoring ecosystems and driving sustainable water management. Water markets are based upon water rights which can be bought and sold, enabling water to be transferred from one user to another. A well-managed water market provides economic flexibility, encourages water saving measures and brings a variety of stakeholders to the table to find balance between the water needs of people and nature.
The Nature Conservancy’s new report, “Water Share: Using water markets and impact investment to drive sustainability,” explores the potential for water markets and impact investment to serve as part of the solution to global water scarcity. Water markets, when paired with creative investment solutions including The Nature Conservancy’s concept of Water Sharing Investment Partnerships, can help provide a more water-secure future for cities, agriculture, industries and nature.
In previous blogs on Fecal Sludge Management (FSM), we outlined the lack of appropriate attention given to FSM as a formal urban sanitation solution and we presented new tools for diagnosing fecal sludge challenges. In this blog, we provide illustrations from Indonesia and Mozambique of the challenges and opportunities of using FSM.
Ask your child: “Where does our water come from?” And many of them might roll their eyes at being asked such a silly question, and tell you: “Water comes from the tap.”
But how? What is the name of the company that provides the service to you? How much does your water service cost? Is it expensive? Where does your wastewater go? Is it treated prior to discharge? How many people get water from the utility in your town?
You can find answers to these and many other questions on our global website www.ib-net.org. Go to its performance database or its separate tariff database and get your answers! You can be one of nearly 8,000 people that visit the site each month to access a set of standard reports for a range of comparisons, benchmarking and assessments for more than 5,000 water utilities from 150 countries.
Just sixteen projects in energy, transport and water/sanitation. In only nine countries. Totalling $4.6 billion.
There are 66 IDA countries (excluding a few rich enough to count as “IDA blend”), defined as having per capita income under $1,215. This $4.6 billion in IDA countries compares to total private infrastructure investment commitments of $111.6 billion in all emerging markets in 2015 per the recently released Private Participation in Infrastructure database.
In recent years, the number of projects and investment amounts of private infrastructure in IDA countries hasn’t increased. If people living in the poorest countries are to get better access to energy, transport and water services, and if we believe that the innovation, management capacity and financing of the private sector working together with governments is essential to help make that happen … well, then we need a step change.
We know to make a difference requires dedication and a long term vision. One part of that ambitious change is the Global Infrastructure Facility (GIF). The GIF is a global open platform to help partners prepare and structure complex infrastructure public-private partnerships (PPPs) in emerging markets, and to bring in private sector and institutional investor capital. The GIF platform integrates the efforts of multilateral development banks (who as Technical Partners choose which projects to submit for GIF funding), private sector investors and financiers, and governments to bring infrastructure projects and programs to market. No single institution can achieve these goals alone. The GIF’s Advisory Partners, which include insurers, fund managers, and commercial lenders, and which together have $13 trillion in assets under management, provide feedback to governments on the bankability of projects.
Our last blog outlined the neglect of Fecal Sludge Management (FSM) and presented new tools for diagnosing FSM challenges and pointing the way to solutions.
In this blog, we’ll share some lessons learned from the city-specific case studies and analysis to highlight key areas which need to be addressed if the non-networked sanitation services on which so many citizens rely are to be effectively managed.
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Small towns* typically have not been well served by national or regional water utilities. Decentralization has become increasingly widely adopted, but even if local governments at the small town level have the power to operate a water utility, they often lack the capital and skills to do so. In response, some local governments and public institutions concentrate improvements on upgrading public utilities’ operations or strengthening community based management. In other cases, they choose to bring in the private sector knowledge of how to get clean water and sanitation services to more people more efficiently, affordably or sustainably.
There are many ways in which the public sector can leverage its own resources through partnering with the private sector. For the domestic private sector to fully realize its potential at scale in the small town sub-sector, we found they need capable and enabled public institutions to structure the market and regulate private operators.
Lessons learned from case study countries (Colombia, Bangladesh, Philippines, Uganda, Cambodia, Niger and Senegal) in a new global study published by the Water Global Practice’s in order to build a conducive business climate for market players in small towns Water Supply and Sanitation (WSS) service delivery:
Swachh Bharat Mission Grameen (SBM (G)) – the rural clean India mission – plans to eliminate open defecation by 2019. SBM (G) is time-bound with a stronger results orientation, targeting the monitoring of both outputs (access to sanitation) and outcomes (usage). There is also a stronger focus on behavior change interventions and states have been accorded greater flexibility to adopt their own delivery mechanisms.
The World Bank has provided India with a US$1.5 billion loan and embarked on a technical assistance program to support the strengthening of SBM-G program delivery institutions at the national level, and in select states in planning, implementing and monitoring of the program.
Recently developed Fecal Sludge Management tools to help address this important, but often-ignored, urban sanitation issue.
A global challenge
This requires expensive infrastructure, a plentiful water supply, skilled operators and a substantial and reliable stream of operating funds. This means that in most low- and middle-income country cities, the sewerage service is only available to a small and decreasing proportion of the population, as investments cannot keep up with the explosive urban growth.