Transcript Le Huu Ti, Challenges and Prospects of Financing Access to Water

ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
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
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Main sources of
reference:
1. Asia Water Watch
2. WHO/UNICEF JMP
3. World Bank WSP
4. EASAN
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Points of Discussion
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
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Source: Seetharam, ADB, 2005
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Source: Seetharam, ADB, 2005
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Source: Seetharam, ADB, 2005
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Water: Urban
and rural
disparities 2004:
84% without
access live in
rural areas
Source: WHO/UNICEF
JMP, 2006
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
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
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Infrastructure for Water-related Services:
Population Coverage with Water Supply and
Sanitation in Asia and the Pacific as of 2002
Water supply
Served population
Unserved population
mln.
%
mln.
%
3,147
82
691
18
Sanitation
Served population
Unserved population
mln.
%
mln.
%
1,881
49
1,957
51
Source: WHO and UNICEF Global Water Supply and Sanitation Assessment
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
The estimated annual water and sanitation
expenditure need is US$12 billion in the region
Annual Investment Needs (2006-2010) as percent of GDP
Urban
Rural Water
Region
Water
Sanitation &
and
Wastewater
Sanitation
Total
East Asia and the Pacific
0.10%
0.34%
0.20%
0.64%
Europe and Central Asia
0.05%
0.18%
0.07%
0.30%
Latin America and the Carribean
0.05%
0.14%
0.03%
0.23%
Middle East and North Africa
0.08%
0.19%
0.18%
0.45%
South Asia
0.16%
0.34%
0.87%
1.36%
Sub-Saharan Africa
Developing Regions
0.25%
0.09%
0.44%
0.26%
0.93%
0.25%
1.63%
0.61%
Source: J. Saghir, World Bank, EASAN, 2007
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Why is the sector under invested?
Low overall spending in Asia (1990-2000
annual)
– 3.6% of investment for W&S
– Water: US$ 6 billion (rural/urban 50/50)
– Sanitation: US$1.1 billion (rural/urban 10/90)
Local governments need strong direction
from national leaders
Spending has lifted only marginally since
then
Source: J. Saghir, World Bank, EASAN, 2007
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Public Expenditure Reviews: Indonesia
Sector financing is still limited: from 0.40% of
GDP in 1998 to 0.64% of GDP in 2002
Local governments are now primary funders of
WSS, but sector allocations appear unrelated to
GRDP and ‘ad hoc’
90% of investment is for capital investment, little
to nothing for ‘software’: maintenance, capacity
building, TA, sanitation and hygiene education
Too many budget holders involved, no coherent
data collection, analysis, and reporting on sector
financing and performance
Source: Almud Weitz, WSP, the World Bank
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
International Private Investment in
Infrastructure (1990-2002)
US$ billion (estimation by the World Bank)
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Investments may have different objectives
General
8%
2500
Water Supply
Sanitation (inc. wastewater)
2000
US$ (million)
WB-supported Sector
Investments in East
Asia (FY95 - FY07)
Water supply vs. sanitation
1500
1000
500
Sewerage
72%
0
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
Sewerage vs. basic sanitation
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FY04
FY05
FY06
FY07
Recognize that limited Water
resources
(WC,0.85WZ)
will have to cover both basic
access to sanitation and
environmental protection
Countries will continue to
balance brown and green
objectives
Sanitation and Wastewater(WA,WC,0.15WZ)
Sanitation
20%
FY03
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
5-year moving average for WBsupported sector investments
Sanitation
Sewerage
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Importance of universal sanitation
Per capita impacts
in 4 countries range
from US$10 to over
US$30 (~ 2% GDP)
Similar impacts are
expected in other
countries
Economic losses (US$ per capita)
35
Tourism
Other welfare
30
Environment
25
Water
20
Health
15
10
5
0
Cambodia
Indonesia
Source: J. Saghir, World Bank, EASAN, 2007
United Nations ESCAP
Philippines
Vietnam
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Tourists are sensitive to their environment
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
Source: J. Saghir, World Bank, EASAN, 2007
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Investing in sanitation results in huge benefits
of US$9 billion loss/year >70% can be
averted (US$6.6 billion)
Economic losses and gains
(US$ million)
7,000
6,000
Losses
Gains
5,000
4,000
3,000
2,000
1,000
0
Cambodia
Indonesia Philippines
Vietnam
Water and Sanitation Program (2007). Economic impacts of sanitation in Southeast Asia. World Bank.
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Dynamics of water withdrawal and water
consumption in Asia during 20th century and
water use forecast by two scenarios
Water use, km3/year
3000
Assessment
2000
Forecast
1000
0
1940
1955
1970
1985
2030
2015
2000
Years
Water w ithdraw al
Water consumption
СS
SDS
Source: Shiklomanov A.I., Strategic Planning Concluding Workshop, UNESCAP, 2004
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Infrastructure for Water Resources
Development and Management:
Large Dams and Reservoirs
World
Asia and the Pacific
Number of dams
55,000
35,000
China: 26,000, India: 4,500, Japan: 2,800
Total storage capacity, created by dams
6,120 billion m3
1,350 billion m3
Per capita storage capacity
960
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m3
360 m3
Australia: 5,000 m3, Afghanistan: 140 m3
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Need for Accelerated Water
Infrastructure Development due to
 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
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Trends in domestic withdrawal
160
Republic of Korea
m3 per capita per year
140
Japan
Uzbekistan
120
Russian Federation
100
Turkmenistan
80
60
Philippines
India
Malaysia
Kazakhstan
40
Bangladesh
0
1973-1977
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Thailand
Pakistan
20
1978-1982
1983-1987
1988-1992
Sri Lanka
1993-1997
1998-2002
Bangladesh
Indonesia
Malaysia
China
Japan
Pakistan
Fiji
Kazakhstan
Philippines
India
Kyrgyzstan
Republic of Korea
Russian Federation
Turkmenistan
Sri Lanka
Uzbekistan
Tajikistan
Viet Nam
Thailand
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Trends in water supply production
in selected members of ESCAP
Production
capacity of
of urban
urbanand
andrural
ruralwaterworks
waterworksper
perperson
person
Production capacity
(cubic
per day)
(cubicmetres
metres/day)
0.750
0.750
0.700
0.700
0.650
0.650
0.600
0.600
0.550
0.550
0.500
0.500
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Hong Kong: Urban and Rural
Hong Kong:
Singapore:
UrbanUrban and Rural
Singapore: Urban
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Republic of Korea: Urban and Rural
Republic of Korea: Urban and Rural
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Water supply production and
investment in Singapore
0.660
140.0
0.640
120.0
0.620
100.0
0.600
80.0
0.580
60.0
0.560
40.0
0.540
0.520
20.0
0.500
0.0
1994
1995
1996
1997
1998
1999
2000
Urban production capacity per person (cubic metres per day)
Public capital expenditures for urban water supply (million US dollars)
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Water supply production and
investment in Hong Kong, China
6000
500
450
5000
400
350
4000
300
3000
250
200
2000
150
100
1000
50
0
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Total production capacity of urban and rural waterworks (thousand cubic metres per day)
Public capital expenditures for urban and rural water supply (million US dollars)
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Indicative Annual Investment in Water
Infrastructure for Developing Countries
Infrastructure for
Drinking water
Sanitation and hygiene
Municipal wastewater
treatment
Industrial effluent
Agriculture (mostly irrigation)
Environmental protection
Global total
Estimated total infrastructure
investment requirement for
Asia and the Pacific*
Annual costs (billions of US$)
Appr.2000
2002-2025
13
13+
1
17
14
70
7
32.5
7.5
75
*Estimation by UNESCAP
Source: Report of the World Panel on Financing Water Infrastructure, 2003
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30
40
10
180
99
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Latest developments
First Asia-Pacific Water Summit on Water
Security: Leadership and Commitment to
achieve MDG target 10
ADB commits to increase investment an
additional amount of US$ 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
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ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Thank you
for more information on SPM
www.unescap.org/esd/water/
(UNESCAP website)
www.spm-water-ap.net
(FAO-UNESCAP website)
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