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What are the opportunities for innovative water financing solutions?

Richard MacGeorge's picture
During SIWI World Water Week 2015,
World Bank Group Lead Infrastructure Specialist,
Richard MacGeorge, presented on the challenges
of financing for development in the water sector.

It’s been 27 years since I have been to Sweden, backpacking my way around the country and marveling at its beautiful natural environment. So it was with real excitement that I set off for the SIWI World Water Week in Stockholm that ran between 23-28 August. I was especially keen to understand better the big issues that the world is facing, particularly since the theme this year was “Water for Development.”

My World Bank colleagues, and particularly those from the Water Global Practice, were well represented and participated in 13 of the events during the week, so the stage was set for serious discussion. As part of that discussion, I presented on the challenges of financing for development in the water sector. I wanted to leave the audience with three key messages. These were that (1) water is physically but not financially transparent; (2) financial innovation has to be conducted in parallel with and reflect the transitional nature of capital markets and (3) other sectors can give us guidance.

Working on water across borders: Spillover benefits for the SDGs

Jonathan Kamkwalala's picture
At the heels of the Sustainable Development Summit at the United Nations in New York this past weekend, an operations team from the World Bank’s Water Global Practice (GP) is meeting with international development partners and African implementing partner organizations in Zambia this week as part of the fourth annual advisory committee meeting of the Cooperation in International Waters in Africa (CIWA) program, with deep commitment and support from the Governments of the United Kingdom, Sweden, Norway, Denmark, and the Netherlands. The timing is coincidental, but symbolically significant: water management will be key to achieving the 17 Sustainable Development Goals (SDGs), which set the wider global development agenda for the next 15 years. In much of the world, managing water resources means working across borders in transboundary river basins, adding complexity to realizing SDG #6, to “ensure availability and sustainable management of water and sanitation for all.”

A tipping point for water

Junaid Kamal Ahmad's picture

Also available in: Español | Français | العربية

This blog originally appeared on The Huffington Post as part of a series, "What's Working: Sustainable Development Goals." 

As a sector in world affairs, water is reaching a tipping point. Over the next two decades, the global push for food and energy security and for sustaining urbanization will place unprecedented demands on water.

Ours is a "thirsty" world, in which agriculture and energy compete with the needs of cities. At the same time, climate change may worsen the situation by increasing water stress and extreme-weather events. Hence, the water and climate nexus can no longer be a side event at global-climate talks. All of this is happening while the important push for universal access to water and sanitation services -- despite the impressive gains over the past several decades -- remains an unfinished agenda.

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 Security: Can we be a step ahead of the challenge?

Diego Juan Rodriguez's picture

Water security is a major challenge for many countries, especially developing ones. The numbers tell a story of water resources under stress while competition for their use is increasing – by 2025, about 1.8 billion people will be living in regions or countries with absolute water scarcity. Clean water and adequate sanitation is still far from reach for many of the world’s poorest. At the same time, more water is needed to produce food and energy to satisfy the rising needs of the earth’s growing population.

World Water Day: We want to hear from you

​Each year on March 22 we mark World Water Day. It is an opportunity to keep the urgent water issues – from lack of sanitation to transboundary water to climate change -- top of my mind for practitioners, decision makers and the global public. In the coming days we will post here updates and stories from the field, as well as links to some of our partners’ content. But, more importantly, this is an opportunity to hear from you, too.

Join us for World Water Week

Whether you'll be attending the upcoming World Water Week in person or following online, there's a lot to look forward to this year. This year's theme focuses on Energy and Water and along with Sustainable Energy for All (SE4ALL) and the International Union for Conservation of Nature (IUCN), The World Bank Group is excited to join as a collaborating partner.

Ahead of World Water Day: Let’s Talk about … Energy?

William Rex's picture

For the last six years, a power plant in San Luis Potosi, Mexico has bought water from a nearby wastewater treatment plant to use in its cooling towers (instead of using freshwater). This operation, Project Tenorio, a public-private partnership, continues today and has already resulted in the reduction of groundwater extraction of at least 48 million cubic meters (equivalent to 19,000 Olympic size pools) and increased aquifer sustainability.
This is a good example of the water and energy nexus in practice: the wastewater treatment plant covers almost all of its operating costs from this additional revenue stream and the power plant gets a more reliable water source that is also 33% cheaper than groundwater in that area.  

Treated wastewater has been used to reduce the water requirements of power plants in several other countries as well, as water supply becomes more variable or disappears. In the US, for example, around 50 power plants are using treated wastewater for cooling in order to adapt to water shortages. However, innovative integrated approaches like these are still more of an exception than the norm.

4 Ways Water Shortages Are Harming Energy Production

Diego Juan Rodriguez's picture

In countries around the world, meeting daily energy needs is dependent on water. Finding sufficient water resources to produce the required energy, however, and then appropriately allocating the limited supply, is becoming more difficult.