Asian Development Bank Business Opportunities Seminar Michiel de Lijster Water Sector Group Sustainable Development and Climate Change Department September 2017
Water Sector Outline Context o Asia s Water Challenges o ADB s Water for All Policy Overview of the Water Sector Investments General Business Opportunities 2
Asia s Water Challenges 6.1 6.2 6.3 Universal Water Access Equitable Sanitation Recycle & Reuse Water Use Efficiency 6.4 IWRM 6.5 Ecosystem Protection 6.6 3
ADB s Water for All Policy National water sector reform Integrated management of water resources Delivery of water services Conservation of water and increasing system efficiencies Regional cooperation Knowledge sharing Governance and capacity building 4
What do we want to achieve by 2020? 500 million people provided access to safe drinking water supply and improved sanitation 95 million people provided more efficient and productive irrigation and drainage services 170 million people with reduced risk of flooding Integrated water resources management (IWRM) introduced in at least 30 river basins 5
ADB s targets in Water Investment ADB s annual water lending increased from $2.0 $2.5 billion to $3.0 $3.5 billion Share of sanitation and wastewater increased to 25% of total water lending Urban water utilities on-track towards corporate governance principles and practices PSP/PPP projects provide finance of not less than $500 million per year 6
Investment Areas for ADB s Water operations Rural Water - improving services for health and livelihoods in rural communities such as water supply and sanitation, and irrigation and drainage Urban Water - sustaining economic growth in cities through investments in water supply, sanitation and wastewater management, and environmental improvement Basin Water - promoting IWRM and healthy rivers through investments in infrastructure and management of multifunctional water regulation and hydropower facilities, flood management, watershed and wetlands conservation 7
Water is cross cutting Water SG covers overall water issues and facilitates complementarities and synergies Integrated rural water supply and sanitation Integrated flood management Urban water supply, sanitation and sewerage Integrated water resources management Urban flood protection Urban SG Agriculture, Rural Development and Food Security TG Hydropower generation Water cooling for thermal power Irrigation and drainage Energy SG Under the current project classification system, water operations is reported (with no double counting) in: WUS - Water and other Urban Infrastructure and Services ENE - Energy ANR - Agriculture, Natural Resources, and Rural Development 8
Strategic Direction: Increased Water Security* (Based on Water Operational Plan) * Water security is not just being able to provide sufficient water for households and economic activities, but also includes ensuring healthy ecosystem, and protecting against water-related disasters. 9
Amounts in $ billion 2016 Operations Achievement $2.4 billion approved investments By Subsector By Operations Departments 6 5 SERD: 458M (19%) PSOD: 150M (6%) CWRD: 463 M (19%) 4 3 2 1 0 Annual Average 2011-2014 Actual Water supply, sanitation, wastewater management (WUS) Irrigation and drainage (ANR) Flood management (WUS/ANR) Water resources management, wetlands and watershed protection (ANR) Hydropower generation (ENE) 2015 2016 2017 2018 2019 Pipeline SARD 668M (28%) Climate finance PARD: 45M (2%) Adaptation - $518 million Mitigation - $33 million EARD: 634M ( 26%) 10
ADB s Water Investments Total investment portfolio (1968-2016): $46 billion Rural Water: $11 billion Urban Water: $21 billion Basin Water: $14 billion 2017-2018 Pipeline $ 4.7 Billion 11
Water Financing Partnership Facility (WFPF) Established on 29 November 2006 Resources: Financing Partners Multi-Donor Trust Fund (Australia, Austria, Norway (until 2017), Spain, Switzerland) Netherlands Trust Fund Sanitation Financing Partnership Trust Fund (Bill and Melinda Gates Foundation) Significance: Directly supported water operations - 50% of investments supported by WFPF Enabled piloting and demonstration of innovations and technology 12
2016 Spotlight Projects Cross-Sector BAN: Dhaka Water Supply Network Improvement Project PRC: Integrated Wastewater Management Project (non-sovereign) Climate Change INO: Flood Management in Selected River Basins Sector Project MYA: Irrigated Agriculture Inclusive Development Project TAJ: Water Resources Management in Pyanj River Basin Innovation/Technology PRC: Shandong Groundwater Allocation and Protection Project PHI: Angat Water Transmission Improvement Project 13
2016 Knowledge Management Asian Water Development Outlook 2016 ADB flagship publication on water security Policy dialogue Investment pipeline development Climate Finance Tracking Guidelines for Water Sector Checklist and Methodology on Energy Use in Water Projects Field Tested in: VIE-PPTA: Water Efficiency Improvement in Drought Affected Provinces 2 nd Asian Irrigation Forum Guidance Note: Implementing Best Practices in Irrigation Projects 14
2016 Human Resources Management Continuous learning and development for Staff 5 th Asia-Netherlands Water Learning Week (urban resilience) With Netherlands Water Partnership and UNESCO Institute for Water Education Application in: TON: Nuku'alofa Urban Sector Resilience Project (urban resilience) VIE: Secondary Cities Development Program (multifunctional flood protection infrastructure) 1 st ADB-Australia Water Learning Week (water scarcity) With Australia Water Partnership; International Water Centre Application in: IND: Karnataka Integrated and Sustainable Water Resources Management Investment Program VIE: Water Efficiency Improvement in Drought Affected Provinces Water Loss Conference With International Water Association In collaboration with Urban SG 15
Water Sector Group Priority Areas CWRD - dam rehabilitation - institutional reform - river clean-up - water productivity measurement in irrigated agriculture - water security for food EARD - basin water management - ecosystem services - groundwater management - urban-rural integration of water resources PARD - climate change adaptation - water utilities management SARD - irrigation modernization - water accounting in pilot river basins - water productivity measurement in irrigated agriculture - water resources management SERD - flood and drought risk management - irrigation modernization - urban water security and water resilience - water accounting in pilot river basins - water productivity measurement in irrigated agriculture 16
2017 Pipeline - $4.2 Billion By Subsector By Operations Departments Hydropower Generation 530M (13%) SERD: 727M (17%) CWRD: 1.4B (33%) Water Resources Management, Wetlands, and Watershed Protection 365M (9%) Flood Management 256M (6%) Irrigation and Drainage 1.5B (38%) Water Supply, Sanitation and Waste Management 1.4B (35%) SARD: 1.8B (43%) EARD: 634M (26%) PARD: 52M (1%) 17
2017 Spotlight Projects Cross-Sector PRC: Yangtze River Economic Belt cluster investment program Climate Change IND: Madhya Pradesh Urban Services Improvement Project VIE: Ho Chi Minh City Wastewater and Drainage System Improvement Project Innovation/Technology IND: Madhya Pradesh Irrigation Efficiency Improvement Project INO: Integrated Participatory Development and Management of Irrigation Program PAK: Balochistan Water Resources Development Project 18
Water Sector Group Activities PRC: Yangtze River Green Ecological Corridor Comprehensive Agriculture Development Project Reconnaissance Mission and Concept Support Guidance Notes Implementing Best Practices in Irrigation Projects Integrating Flood Risk Management and Climate Change Adaptation CAM: Second Rural Water Supply and Sanitation Sector Project Technical support Policy Dialogue Conceptualization Preparation Implementation Operations & Maintenance Country Partnership Strategy Country Programming Mission VIE: Water Efficiency Improvement in Drought Affected Provinces PPTA support through WFPF Project Team Member Peer review IND: Madhya Pradesh Irrigation Efficiency Improvement Project Design-Build-Operate Contract Pilot and Demonstration Activities INO: Pilot testing of Aerial/Lidar and Unmanned Service Vehicle Survey Data for Irrigation Asset Management Knowledge Management 19
2017 Knowledge Management (Focusing on Cross-Sectoral/Thematic Areas) Checklist: Improving Energy Efficiency in Water Projects Pilot testing in: IND: Climate Adaptation in Vennar Sub-basin of Cauvery Delta Project PAK: Punjab Irrigated Agriculture Investment Program UZB: Amu Bukhara Irrigation System Rehabilitation Project Case studies: Innovative Approaches to Flood Risk Management and Climate Change Adaptation Collaboration with Environment and CCDRM Thematic Groups Guidance Note: Implementing Best Practices in Irrigation Projects Application in VIE: Water Efficiency Improvement in Drought Provinces Water Operational Plan 2011 2020: Midterm Review Midterm adjustments input to Strategy 2030 20
Opportunities for Consulting Services (estimated amount for 2017 water sector) Project Preparation Technical Assistance (PPTA): $65 million Other Technical Assistance: $7 million 21
Business Opportunities A menu of solutions will form the basis for operational interventions over the next 5 years: Water use efficiencies across the range of users Expanded wastewater management and wastewater reuse Embedded integrated water resources management Expanded knowledge development Technology and innovation Enhanced partnerships with the private sector 22
Michiel de Lijster mdelijster@adb.org