Camdessus Tells Water Week Opening: 'Dream of Pure Water can be Realized'
MANILA, PHILIPPINES (27 January 2004) - The dream of pure water for all is a realizable goal, Michel Camdessus, former Managing Director of the International Monetary Fund (IMF), told the opening of ADB's Water Week today.
Addressing more than 350 delegates, Mr. Camdessus, who is Chairman of the World Panel on Financing Water Infrastructure, cited "the good start" that has been made in the implementation of the report on Financing Water Infrastructure. He pointed to how the report's proposals have "started permeating major fora, such as the Development Committee in Washington, the OECD and the European Union, culminating in the G8 Action Plan in Evian in June 2003."
Calling the water crisis "one of the world's worst injustices, perhaps because it is above all an injustice to women," Mr. Camdessus said that "the next step is about more than global strategy, money and a doubling of financing. It is about commitment and determination."
Mr. Camdessus continued: "The problem can only be solved if all the various parties accept the need to change their approach, in some cases radically. This applies not just to governments in the North and South but also to towns, regions, nongovernmental organizations, communities and civil society, public services, companies, banks, multilateral organizations and others. Each must redouble its efforts."
In his keynote presentation, Mr. Camdessus called for financial flows to at least double and argued that sustainable cost recovery is central to achieving the MDGs. He went on to stress the essential role of the international financial institutions (IFIs), including ADB, in stimulating financial flows. He said, that in response to the G8 Action Plan, IFIs are already exploring how to use their financing instruments in a more flexible manner through guarantee and insurance products for risk mitigation; by addressing the issue of sovereign and foreign exchange risk coverage; and are considering how to increase financial and technical support to sub-sovereign bodies.
Praising the efforts of ADB to catalyze water financing for the rural poor under its Partnerships for Action program launched at the 3rd World Water Forum and now piloted in rural water projects in Viet Nam, Mr. Camdessus concluded:
"When so much is at stake, and when the world can rely on solid multilateral institutions to take the lead, to innovate, to create the proper instruments and to actively catalyze reforms, the hope remains that these major undertakings of the world community have a reasonable chance of being fulfilled."
His words were endorsed by ADB President Tadao Chino, who said: "ADB actively participated in the Panel and supports the Panel's recommendations. At ADB, we look forward to improving and expanding water financing in collaboration with our developing member countries, development partners, and stakeholders."
He continued:
"We will also advocate innovation, synergies, and partnerships to enhance the flow of financing for water infrastructure and management. In all this, we will work closely with our developing member countries to boost efficiency in the sector, and to adopt more effective water policies"
As part of the opening ceremony, The Phnom Penh Water Supply Authority (PPWSA) in Cambodia was awarded ADB's 2004 Water Prize for its transformation of Phnom Penh's water supply over the last 12 years. PPWSA General Manager, Ek Sonn Chan received the prize from Mr. Chino.
Through strong leadership, governance, political commitment on tariffs and a motivated staff, the PPWSA has, since 1993, increased its distribution network from serving 40% of Phnom Penh to serving over 80%. Nonrevenue water - the result of leaks, mis-measurement, illegal connections and illegal sales - is at only 22% (from 72%) and collections are at almost 99% with full cost recovery achieved. By mid-2004, it is predicted that the water supply capacity in the city will have increased to 235,000 cubic meters per day, making it possible to supply reliable and safe drinking water to all Phnom Penh's one million inhabitants.
"The Authority has clearly demonstrated leadership and innovation in the areas of project financing and good governance, consistent with and supportive of ADB's water policy, 'Water for All'," Mr. Chino added. "The autonomy granted to the Authority has made it fully accountable for performance. The achievement of full cost recovery has put the Authority in a strong financial position to be able to repay its loans. More significantly, the Authority's financial strength has enabled it to expand services to poor areas where piped water supplies were previously just a dream."
The ADB Water Prize is awarded annually to a project agency within an ADB developing member country that has demonstrated good practices in innovative water financing and good governance on an ADB-financed project. Three ADB Water Achievement Awards and a Best Water Project Team will also be presented to ADB staff in recognition of their work in the water sector.
The theme of ADB's Second Water Week, which closes Friday, is "Water for the Poor: Setting the Rules and Finding the Money" with 350 water experts from across Asia attending.
Other keynote speakers will include Erna Witoelar, United Nations Special Ambassador for MDGs for Asia and the Pacific; ADB Vice-President Geert van der Linden; and Ravi Narayanan, Director of the charity, WaterAid. The closing remarks will come from ADB Vice-President Liqun Jin.
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