United Nations ESCAP
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-HuuTi Le-HuuSustainable Development and Water Sustainable Development and Water
Resources SectionResources SectionUNESCAPUNESCAP
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Main Main sources of sources of reference:reference:1. Asia Water 1. Asia Water WatchWatch
2. WHO/UNICEF 2. WHO/UNICEF JMPJMP
3. World Bank 3. World Bank WSPWSP
4. EASAN4. EASAN
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Points of Points of DiscussionDiscussionCoverage of water supply & Coverage of water supply &
sanitation in Asia and the Pacificsanitation in Asia and the PacificInvestment to meet MDGs in water Investment to meet MDGs in water
supply and sanitationsupply and sanitationTrends and challenges in water Trends and challenges in water
supply and sanitationsupply and sanitationInvestment in water infrastructureInvestment in water infrastructureEmerging opportunitiesEmerging opportunities
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
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
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Water: Urban Water: Urban and rural and rural
disparities disparities 2004: 84% 2004: 84%
without access without access live in rural live in rural
areas areas
Source: WHO/UNICEF Source: WHO/UNICEF JMP, 2006JMP, 2006
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
The world is The world is not on track to not on track to meet the MDG meet the MDG
sanitation sanitation targettarget
Progress for Children: A report card on water and sanitation, Progress for Children: A report card on water and sanitation, UNICEF, 2006; UNICEF, 2006; Data: WHO/UNICEF JMP, 2006Data: WHO/UNICEF JMP, 2006
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Infrastructure for Water-related Services:Infrastructure for Water-related Services:Population Coverage with Water Supply and Population Coverage with Water Supply and Sanitation in Asia and the Pacific as of 2002Sanitation in Asia and the Pacific as of 2002
Water supplyWater supply
Served populationServed population Unserved populationUnserved population
mln.mln. %% mln.mln. %%
3,1473,147 8282 691691 1818
SanitationSanitation
Served populationServed population Unserved populationUnserved population
mln.mln. %% mln.mln. %%
1,8811,881 4949 1,9571,957 5151
Source: WHO and UNICEF Global Water Supply and Sanitation Assessment
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
The estimated annual water and The estimated annual water and sanitation expenditure need is US$12 sanitation expenditure need is US$12
billion in the regionbillion in the region
Water
Sanitation &
Wastewater
East Asia and the Pacific 0.10% 0.34% 0.20% 0.64%
Europe and Central Asia 0.05% 0.18% 0.07% 0.30%
Latin America and the Carribean 0.05% 0.14% 0.03% 0.23%
Middle East and North Africa 0.08% 0.19% 0.18% 0.45%
South Asia 0.16% 0.34% 0.87% 1.36%
Sub-Saharan Africa 0.25% 0.44% 0.93% 1.63%
Developing Regions 0.09% 0.26% 0.25% 0.61%
Annual Investment Needs (2006-2010) as percent of GDP
Rural Water
and
Sanitation
Urban
TotalRegion
Source: J. Saghir, World Bank, EASAN, 2007Source: J. Saghir, World Bank, EASAN, 2007
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Why is the sector under invested?Why is the sector under invested?
Low overall spending in Asia (1990-2000 Low overall spending in Asia (1990-2000 annual)annual)– 3.6% of investment for W&S3.6% of investment for W&S– Water: Water: US$ 6 billionUS$ 6 billion (rural/urban 50/50)(rural/urban 50/50)– Sanitation: Sanitation: US$1.1 billionUS$1.1 billion (rural/urban (rural/urban
10/90)10/90)
Local governments need strong Local governments need strong direction from national leadersdirection from national leadersSpending has lifted only marginally Spending has lifted only marginally since thensince then
Source: J. Saghir, World Bank, EASAN, 2007Source: J. Saghir, World Bank, EASAN, 2007
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Public Expenditure Reviews: IndonesiaPublic Expenditure Reviews: IndonesiaSector financing is still limited: from 0.40% of Sector financing is still limited: from 0.40% of GDP in 1998 to 0.64% of GDP in 2002GDP in 1998 to 0.64% of GDP in 2002Local governments are now primary funders Local governments are now primary funders of WSS, but sector allocations appear of WSS, but sector allocations appear unrelated to GRDP and ‘ad hoc’unrelated to GRDP and ‘ad hoc’90% of investment is for capital investment, 90% of investment is for capital investment, little to nothing for ‘software’: maintenance, little to nothing for ‘software’: maintenance, capacity building, TA, sanitation and hygiene capacity building, TA, sanitation and hygiene educationeducationToo many budget holders involved, no Too many budget holders involved, no coherent data collection, analysis, and coherent data collection, analysis, and reporting on sector financing and reporting on sector financing and performanceperformance
Source: Almud Weitz, WSP, the World BankSource: Almud Weitz, WSP, the World Bank
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
International Private Investment in International Private Investment in Infrastructure Infrastructure (1990-2002)(1990-2002)US$ billion (estimation by the World Bank)US$ billion (estimation by the World Bank)
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
WB-supported Sector WB-supported Sector Investments in East Investments in East Asia (FY95 - FY07)Asia (FY95 - FY07)
Sewerage72%
General 8%
Sanitation 20%
Sewerage vs. basic sanitation
Water supply vs. sanitation
Recognize that limited Recognize that limited resources will have to cover resources will have to cover both basic access to sanitation both basic access to sanitation and environmental protectionand environmental protectionCountries will continue to Countries will continue to balance brown and green balance brown and green objectivesobjectives
Water SupplySanitation (inc. wastewater)
Investments may have different Investments may have different objectivesobjectives
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
5-year moving average for WB-supported sector investments
Sanitation
Sewerage
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Importance of universal sanitationImportance of universal sanitation
Per capita impacts Per capita impacts in 4 countries range in 4 countries range from US$10 to over from US$10 to over US$30 (~ 2% GDP)US$30 (~ 2% GDP)
Similar impacts are Similar impacts are expected in other expected in other countriescountries
0
5
10
15
20
25
30
35
Cambodia Indonesia Philippines Vietnam
Econ
omic
loss
es (U
S$ p
er c
apita
)
Tourism
Other welfare
Environment
Water
Health
Source: J. Saghir, World Bank, EASAN, 2007Source: J. Saghir, World Bank, EASAN, 2007
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Tourism is a high value and fast growing Tourism is a high value and fast growing economic sector for revenues and foreign economic sector for revenues and foreign exchange in the regionexchange in the regionTourism revenues can be put at risk by poor Tourism revenues can be put at risk by poor sanitation as high value tourists will not come sanitation as high value tourists will not come …if the drains lead to their beach …if the drains lead to their beach
Tourists are sensitive to their environment
Source: J. Saghir, World Bank, EASAN, 2007Source: J. Saghir, World Bank, EASAN, 2007
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
of US$9 billion loss/year >70% can be of US$9 billion loss/year >70% can be averted (US$6.6 billion)averted (US$6.6 billion)
Investing in sanitation results in huge benefits
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Cambodia Indonesia Philippines Vietnam
Ec
on
om
ic l
os
se
s a
nd
ga
ins
(US
$ m
illi
on
) Losses
Gains
Water and Sanitation Program (2007). Economic impacts of sanitation in Southeast Asia. World Bank.
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
0
1000
2000
3000
1940 1955 1970 1985 2000 2015 2030
Years
Wa
ter
use
, km
3/y
ea
r
Water w ithdraw al Water consumption СS SDS
Assessment
Forecast
Dynamics of water withdrawal and water Dynamics of water withdrawal and water consumption in Asia during 20consumption in Asia during 20thth century and century and
water use forecast by two scenarios water use forecast by two scenarios
Source: Shiklomanov A.I., : Shiklomanov A.I., Strategic Planning Concluding Workshop, UNESCAP, 2004, UNESCAP, 2004
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Infrastructure for Water Resources Infrastructure for Water Resources Development and Management:Development and Management:
Large Dams and ReservoirsLarge Dams and Reservoirs
WorldWorld Asia and the PacificAsia and the Pacific
Number of damsNumber of dams
55,00055,000 35,00035,000China: 26,000, India: 4,500, Japan: 2,800China: 26,000, India: 4,500, Japan: 2,800
Total storage capacity, created by damsTotal storage capacity, created by dams
6,120 billion m6,120 billion m33 1,350 billion m1,350 billion m33
Per capita storage capacityPer capita storage capacity
960 m960 m33 360 m360 m33
Australia: 5,000 mAustralia: 5,000 m33, Afghanistan: 140 m, Afghanistan: 140 m33
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Need for Accelerated Water Need for Accelerated Water Infrastructure DevelopmentInfrastructure Development due todue to
Insufficient water storage capacityInsufficient water storage capacity- expected deficit of a few hundred billion m- expected deficit of a few hundred billion m3 3 of water of water
storage as demand for water will be growingstorage as demand for water will be growing
- no reservoirs on many international rivers- no reservoirs on many international rivers
Shortage of infrastructure for drinking water Shortage of infrastructure for drinking water
supply and sanitation to meet respective MDGssupply and sanitation to meet respective MDGs i.e. to reduce by half the proportion of people without i.e. to reduce by half the proportion of people without safe water and basic sanitation by 2015safe water and basic sanitation by 2015
Grossly underdeveloped infrastructure for Grossly underdeveloped infrastructure for sewage and wastewater treatmentsewage and wastewater treatment
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Trends in domestic withdrawal
Bangladesh
India
Japan
Kazakhstan Malaysia
Pakistan
Philippines
Republic of Korea
Russian Federation
Sri Lanka
Thailand
Turkmenistan
Uzbekistan
0
20
40
60
80
100
120
140
160
1973-1977 1978-1982 1983-1987 1988-1992 1993-1997 1998-2002
m3
pe
r c
ap
ita
pe
r y
ea
r
Bangladesh China Fiji India
Indonesia Japan Kazakhstan Kyrgyzstan
Malaysia Pakistan Philippines Republic of Korea
Russian Federation Sri Lanka Tajikistan Thailand
Turkmenistan Uzbekistan Viet Nam
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Trends in water supply production Trends in water supply production in selected members of ESCAPin selected members of ESCAP
0.500
0.550
0.600
0.650
0.700
0.750
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Hong Kong: Urban and Rural Republic of Korea: Urban and Rural
Singapore: Urban
Production capacity of urban and rural waterworks per person(cubic metres per day)
0.500
0.550
0.600
0.650
0.700
0.750
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Hong Kong: Urban and Rural Republic of Korea: Urban and Rural
Singapore: Urban
Production capacity of urban and rural waterworks per person(cubic metres/day)
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Water supply production and Water supply production and investment in Singaporeinvestment in Singapore
0.500
0.520
0.540
0.560
0.580
0.600
0.620
0.640
0.660
1994 1995 1996 1997 1998 1999 2000
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Urban production capacity per person (cubic metres per day)
Public capital expenditures for urban water supply (million US dollars)
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Water supply production and Water supply production and investment in Hong Kong, Chinainvestment in Hong Kong, China
0
1000
2000
3000
4000
5000
6000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
0
50
100
150
200
250
300
350
400
450
500
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)
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Indicative Annual Investment in Water Indicative Annual Investment in Water Infrastructure for Developing CountriesInfrastructure for Developing Countries
Annual costs (billions of US$) Infrastructure for Appr.2000 2002-2025
Drinking water 13 13+ Sanitation and hygiene 1 17 Municipal wastewater treatment
14 70
Industrial effluent 7 30 Agriculture (mostly irrigation) 32.5 40 Environmental protection 7.5 10
Global total 75 180 Estimated total infrastructure investment requirement for Asia and the Pacific*
99
*Estimation by UNESCAP Source: Report of the World Panel on Financing Water Infrastructure, 2003
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Latest Latest developmentsdevelopmentsFirst Asia-Pacific Water Summit on First Asia-Pacific Water Summit on
Water Security: Leadership and Water Security: Leadership and Commitment to achieve MDG target 10Commitment to achieve MDG target 10ADB commits to increase investment ADB commits to increase investment an additional amount of US$ 2 billion an additional amount of US$ 2 billion annually in water sectorannually in water sectorMinisterial Conferences for South Asia Ministerial Conferences for South Asia (SACOSAN) and East Asia (EASAN) on (SACOSAN) and East Asia (EASAN) on Sanitation every two yearsSanitation every two yearsCountries to commit to IYS-2008Countries to commit to IYS-2008
Source: J. Saghir, World Bank, EASAN, 2007Source: J. Saghir, World Bank, EASAN, 2007
United Nations ESCAP
ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL
Thank youThank youfor more information on SPMfor more information on SPM
www.unescap.org/esd/water/www.unescap.org/esd/water/(UNESCAP website)(UNESCAP website)
www.spm-water-ap.netwww.spm-water-ap.net(FAO-UNESCAP website)(FAO-UNESCAP website)
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