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Challenges and Prospects in Financing Access to Water and Sanitation in the Asia-Pacific Region

Challenges and Prospects in Financing Access to Water and Sanitation in the Asia-Pacific Region. Ti Le-Huu Sustainable Development and Water Resources Section UNESCAP. Main sources of reference: 1. Asia Water Watch 2. WHO/UNICEF JMP 3. World Bank WSP 4. EASAN.

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Challenges and Prospects in Financing Access to Water and Sanitation in the Asia-Pacific Region

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  1. Challenges and Prospects in Financing Access to Water and Sanitation in the Asia-Pacific Region Ti Le-Huu Sustainable Development and Water Resources Section UNESCAP

  2. Main sources of reference:1. Asia Water Watch2. WHO/UNICEF JMP3. World Bank WSP4. EASAN

  3. Coverage of water supply & sanitation in Asia and the Pacific Investment to meet MDGs in water supply and sanitation Trends and challenges in water supply and sanitation Investment in water infrastructure Emerging opportunities Points of Discussion

  4. Source: Seetharam, ADB, 2005

  5. Source: Seetharam, ADB, 2005

  6. Source: Seetharam, ADB, 2005

  7. Water: Urban and rural disparities 2004: 84% without access live in rural areas Source: WHO/UNICEF JMP, 2006

  8. The world is not on track to meet the MDG sanitation target Progress for Children: A report card on water and sanitation, UNICEF, 2006; Data: WHO/UNICEF JMP, 2006

  9. Infrastructure for Water-related Services:Population Coverage with Water Supply and Sanitation in Asia and the Pacific as of 2002 Source: WHO and UNICEF Global Water Supply and Sanitation Assessment

  10. Annual Investment Needs (2006-2010) as percent of GDP Urban Rural Water Sanitation & and Water Wastewater Region Sanitation Total East Asia and the Pacific 0.10% 0.34% 0.20% 0.64% Europe and Central Asia 0.05% 0.18% 0.07% 0.30% Latin America and the Carribean 0.05% 0.14% 0.03% 0.23% Middle East and North Africa 0.08% 0.19% 0.18% 0.45% South Asia 0.16% 0.34% 0.87% 1.36% Sub-Saharan Africa 0.25% 0.44% 0.93% 1.63% Developing Regions 0.09% 0.26% 0.25% 0.61% The estimated annual water and sanitation expenditure need is US$12 billion in the region Source: J. Saghir, World Bank, EASAN, 2007

  11. Why is the sector under invested? • Low overall spending in Asia (1990-2000 annual) • 3.6% of investment for W&S • Water: US$ 6 billion(rural/urban 50/50) • Sanitation: US$1.1 billion(rural/urban 10/90) • Local governments need strong direction from national leaders • Spending has lifted only marginally since then Source: J. Saghir, World Bank, EASAN, 2007

  12. Sector financing is still limited: from 0.40% of GDP in 1998 to 0.64% of GDP in 2002 Local governments are now primary funders of WSS, but sector allocations appear unrelated to GRDP and ‘ad hoc’ 90% of investment is for capital investment, little to nothing for ‘software’: maintenance, capacity building, TA, sanitation and hygiene education Too many budget holders involved, no coherent data collection, analysis, and reporting on sector financing and performance Public Expenditure Reviews: Indonesia Source: Almud Weitz, WSP, the World Bank

  13. International Private Investment in Infrastructure (1990-2002)US$ billion (estimation by the World Bank)

  14. Investments may have different objectives WB-supported Sector Investments in East Asia (FY95 - FY07) Water supply vs. sanitation Water Supply Sanitation (inc. wastewater) • Recognize that limited resources will have to cover both basic access to sanitation and environmental protection • Countries will continue to balance brown and green objectives Sewerage vs. basic sanitation

  15. 5-year moving average for WB-supported sector investments Sanitation Sewerage

  16. Importance of universal sanitation • Per capita impacts in 4 countries range from US$10 to over US$30 (~ 2% GDP) • Similar impacts are expected in other countries Source: J. Saghir, World Bank, EASAN, 2007

  17. Tourism is a high value and fast growing economic sector for revenues and foreign exchange in the region Tourism revenues can be put at risk by poor sanitation as high value tourists will not come …if the drains lead to their beach Tourists are sensitive to their environment Source: J. Saghir, World Bank, EASAN, 2007

  18. of US$9 billion loss/year >70% can be averted (US$6.6 billion) Investing in sanitation results in huge benefits Water and Sanitation Program (2007). Economic impacts of sanitation in Southeast Asia. World Bank.

  19. Dynamics of water withdrawal and water consumption in Asia during 20th century and water use forecast by two scenarios Source: Shiklomanov A.I., Strategic Planning Concluding Workshop, UNESCAP, 2004

  20. Infrastructure for Water Resources Development and Management:Large Dams and Reservoirs

  21. Insufficient water storage capacity - expected deficit of a few hundred billion m3 of water storage as demand for water will be growing - no reservoirs on many international rivers Shortage of infrastructure for drinking water supply and sanitation to meet respective MDGs i.e. to reduce by half the proportion of people without safe water and basic sanitation by 2015 Grossly underdeveloped infrastructure for sewage and wastewater treatment Need for Accelerated Water Infrastructure Developmentdue to

  22. Trends in water supply production in selected members of ESCAP

  23. Water supply production and investment in Singapore

  24. Water supply production and investment in Hong Kong, China

  25. Indicative Annual Investment in Water Infrastructure for Developing Countries

  26. Latest developments • First Asia-Pacific Water Summit on Water Security: Leadership and Commitment to achieve MDG target 10 • ADB commits to increase investment an additional amount of US$ 2 billion annually in water sector • Ministerial Conferences for South Asia (SACOSAN) and East Asia (EASAN) on Sanitation every two years • Countries to commit to IYS-2008 Source: J. Saghir, World Bank, EASAN, 2007

  27. Thank youfor more information on SPMwww.unescap.org/esd/water/(UNESCAP website)www.spm-water-ap.net(FAO-UNESCAP website)

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