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Tackling the vital challenge of financing the world’s water infrastructure needs

Guangzhe CHEN's picture
President of Hungary János Áder (left), President of Mauritius Ameenah Gurib-Fakim (middle) and Guangzhe CHEN, Senior Director for World Bank Water Global Practice (left) hosting a press conference at the Budapest Water Summit 2016.

We cannot talk about water and Sustainable Development Goal (SDG) 6 without also looking at everything that depends on it: from climate, food and electricity to families, farms and ecosystems. It is thus quite simple, if we don’t get it right on water, then we will not succeed in achieving the other SDGs either.

Water and climate change are also intertwined, with some regions at risk of losing up to 6 percent of GDP by 2050 if the growing challenge of water scarcity is not properly addressed.


So what is standing in between humanity and the SDGs related to water? 

One of the biggest hurdles is the lack of sufficient sources of finance. Financing the SDG sub-targets for water supply and sanitation alone will cost triple historic financing levels - an estimated $114 billion per year between now and 2030. The shortfall for financing irrigation and water resource management sub-targets will likely be as large, if not larger.

Korea: A model for development of the water and sanitation sector

Alexander Danilenko's picture
Cheonggyecheon Stream, Seoul, Korea 
Photo: Mark Pegrum

Can a sustainable water sector be developed simultaneously with a country’s growth? Can the water sector continue to expand and achieve comprehensive coverage and financial sustainability goals to become a recognized global model for water sector management and performance? Can a country without a single sewer line in 1958 have 90 percent of its wastewater treated by 2012?

The answer is yes! The example is Korea.

Eight things we know about water and electricity utilities in Africa

Luis Andres's picture

Infrastructure is one of the most important forces driving economic growth and poverty reduction.Yet Africa’s infrastructure networks lag increasingly behind those of other developing countries in providing telecom, electricity, and water supply and sanitation services. Two-thirds of the population in the region lacks access to electricity and five out of six people don't have access to piped water. The people and industries that do have services pay twice as much as those outside Africa, further reducing regional competitiveness and growth. As cities continue to flood with migrants looking for better economic opportunities, power and water utilities are being challenged to improve the services offered to existing and new users. Given scarce resources and competing development priorities, it is essential to establish ways of using resources (and knowledge!) more effectively. 

Ensuring robust water management strategies in Lima-Callão, Peru

Laura Bonzanigo's picture
Canto Grande, Lima, Peru. 
Photo Credit: Andrew Howson / Creative Commons

How can water resource agencies make smart investments to ensure long-term water reliability when the future is fraught with deep climate and economic uncertainty? Water resource agencies around the world are grappling with this question at a time of unprecedented water stress, growing demands, uncertain climate change, and limited budgets. We helped SEDAPAL, the water utility serving Lima, Peru, answer this question by drawing on state of the art methods for decision making under deep uncertainty.

Lima is home to approximately 9.8 million people. It is the fifth largest metropolitan area in Latin America. With average precipitation of just 6 mm per year, Lima is also the second largest desert city in the world. A rapidly growing population with approximately one million underserved urban poor, current water shortages, competition for water between sectors, wide rainfall variation due to El Niño effects, and long-term climate change impacts may leave the region under perpetual water stress.

Recognizing the urgency of Lima’s water situation, SEDAPAL has developed an aggressive multi-billion dollar Master Plan to implement 14 large and diverse infrastructural investments projects between now and 2040 at a total cost of US$2.7 billion. Together, the investments are designed to meet the 30 percent increase in water demand that SEDAPAL projects for the coming decades.

Building urban sewerage infrastructure – but where is the sewage?

Isabel Blackett's picture

The World Bank at World Water Week 2015

Sewage is wastewater which contains human excreta (feces and urine), laundry waste, and often kitchen, bathing and other forms of waste water too. It is highly pathogenic, meaning that it contains many disease causing organisms.

Globally around two-thirds of the World’s urban dwellers rely on on-site (on-plot) sanitation. At the same time there is an increasing trend towards replacing on-site sanitation with traditional sewerage systems. Millions of dollars are spent on building sewers and sewage treatment plants while the complementary investments in household sewer connections and toilets are often neglected. What will those municipal investments in sewage treatment achieve without house connections?