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-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 Coverage of water supply & sanitation in Asia and the Pacific Investment to meet MDGs in water supply and sanitation Investment to meet MDGs in water supply and sanitation Trends and challenges in water supply and sanitation Trends and challenges in water supply and sanitation Investment in water infrastructure Investment in water infrastructure Emerging opportunities Emerging 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 and rural disparities 2004: 84% without access live in rural areas Source: WHO/UNICEF JMP, 2006

United Nations ESCAP 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

United Nations ESCAP 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, Sanitation Served population Unserved population mln.%mln.% 1,881491,95751 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 sanitation expenditure need is US$12 billion in the region Water Sanitation & Wastewater East Asia and the Pacific0.10%0.34%0.20%0.64% Europe and Central Asia0.05%0.18%0.07%0.30% Latin America and the Carribean0.05%0.14%0.03%0.23% Middle East and North Africa0.08%0.19%0.18%0.45% South Asia0.16%0.34%0.87%1.36% Sub-Saharan Africa0.25%0.44%0.93%1.63% Developing Regions0.09%0.26%0.25%0.61% Annual Investment Needs ( ) as percent of GDP Rural Water and Sanitation Urban TotalRegion Source: J. Saghir, World Bank, EASAN, 2007

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Why is the sector under invested? Low overall spending in Asia ( 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

United Nations ESCAP 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

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL International Private Investment in Infrastructure ( ) US$ billion (estimation by the World Bank)

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL WB-supported Sector Investments in East Asia (FY95 - FY07) Sewerage vs. basic sanitation Water supply vs. sanitation 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 Water Supply Sanitation (inc. wastewater) Investments may have different objectives

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 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

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL 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

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL 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.

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Dynamics of water withdrawal and water consumption in Asia during 20 th century and water use forecast by two scenarios : Shiklomanov A.I.,, UNESCAP, 2004 Source: Shiklomanov A.I., Strategic Planning Concluding Workshop, UNESCAP, 2004

United Nations ESCAP 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 m 3 1,350 billion m 3 Per capita storage capacity 960 m m 3 Australia: 5,000 m 3, Afghanistan: 140 m 3

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Need for Accelerated Water Infrastructure Development due to Insufficient water storage capacity Insufficient water storage capacity - expected deficit of a few hundred billion m 3 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 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 Grossly underdeveloped infrastructure for sewage and wastewater treatment

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Trends in water supply production in selected members of ESCAP

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Water supply production and investment in Singapore

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Water supply production and investment in Hong Kong, China

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Indicative Annual Investment in Water Infrastructure for Developing Countries

United Nations ESCAP 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

United Nations ESCAP ENVIRONMENTALLY SUSTAINABLE ECONOMIC GROWTH FOR THE WELLBEING OF ALL Thank you for more information on SPM (UNESCAP website) (FAO-UNESCAP website)