'Leadership, Partnership, and Thinking Business Unusual: The Keys to Investing in Asia's Water Management'

Opening Statement by
President Haruhiko Kuroda
Asian Development Bank

At the Water Leaders’ Summit
Roundtable 2 on “The Business of Water”

25 June 2008, 9:32 – 9:40 a.m.
Singapore

I. Introduction

Distinguished guests and fellow presenters; ladies and gentlemen:

More than 250 years ago, a wise scholar said that “We never know the worth of water till the well is dry.” And it is only in the last decade or so that we have begun to measure – if not the worth, then at least the costs – of letting the well run dry. Climate change. Food security. Energy supplies. Ill health and epidemics. Endangered lives and livelihoods. These costs are heavily borne by the poorest people in the poorest parts of our world.

Leadership is critical to improve water security in the Asian and Pacific region, and around the world. So I am delighted to see the presence of so many ministers, policy makers, industry leaders and other high-level participants in this inaugural Water Leaders’ Summit, and honored to be among you.

II. Water Investment Commitments and Results

As we all know, the needs and opportunities to improve water services in Asia and the Pacific – the world’s most populous region – are immense. Despite recent progress, 700 million people still lack access to safe drinking water, and 1.9 billion to basic sanitation – two of the most central targets for achieving the Millennium Development Goals. These issues, along with how water resources are managed, also have a significant impact on several other MDG targets – and on our shared vision of ending all forms of poverty.

We at the Asian Development Bank take our responsibility to help design and implement solutions very seriously. In our recently approved long-term strategic framework, known as Strategy 2020, we highlight water as a key priority area of operations in the coming years.

Our efforts in the sector are boosted by our current Water Financing Program for 2006-2010. We are committed to help countries in the region boost new water investments to $20 billion to increase water security for all, in rural areas, cities, and river basins.

III. Moving Forward

Having reached the mid-way point in our Water Financing Program, it is important that we agree how to prioritize our work in the coming years. I offer to you at this Summit a seven-point agenda for prioritizing water investments in the region. Allow me to briefly outline that agenda to you today.

First, experience shows that much more must be done to help the rural poor escape poverty, enjoy safe drinking water and sanitation, and build vibrant and water-secure communities. Increasing investments in rural water services is particularly urgent now, to increase agricultural productivity and ease escalating food prices.

Second, the region needs to develop more bankable urban projects that improve water utility performance. Business as usual will not benefit the urban poor. Cities and towns need to develop innovative partnerships among government, corporate partners and civil society to provide affordable 24/7 water service to paying customers.

Third, it is critical for all stakeholders to collaborate in integrated water resource management in river basins, to conserve water for sustainable use, and to clean up the environment from households down to rivers and the sea. This will also require significantly higher investments in comprehensive sanitation systems all the way “from toilet to river.”

Fourth, the region must invest now to adapt to climate change, which is happening as we speak. While mitigation is largely “in the air,” adaptation is mostly about water. Governments need to invest in strategies, tools and capacity to prepare for increased floods, droughts and storms as a result of climate change. This includes better predictive capacity, modern design standards, and climate proofing of development projects.

Fifth, water-related disasters are causing more loss of life and destruction in our region. Thus, all sectors should invest more in reducing vulnerability and increasing resilience of communities through improved preparedness. This is as much an institutional challenge as it is about building infrastructure, and both need much more attention in the years ahead.

Sixth, now is the time for inspired leadership to improve water governance, performance and knowledge management. With strong and inclusive leadership, and knowledge networking to draw better on the region’s rich experience, reforms can be accelerated through effective policies, appropriate legislation, and stronger organizations, especially at the local level.

Seventh and finally, investing in partnerships will be the key to delivering results. In our connected world where water management affects almost all sectors, there is a huge dividend from working in partnership. We at ADB offer our resources and Water Financing Program as a platform for working together with our clients and partners. Working in partnership, we can catalyze and leverage investments and pool the region’s knowledge in these priority areas, to raise the standard of living for hundreds of millions of poor people in the region and increase water security for all.

IV. Conclusion

Let me close by assuring you of ADB’s strong commitment to help find solutions and boost water investments in our developing member countries, facilitate knowledge sharing and capacity development, and support the design and implementation of policies and reforms that will ensure sustainable delivery of water services and water management across the region. We look forward to working with you and to achieving, in partnership, tangible results that can be shared when Singapore hosts the 2nd Asia-Pacific Water Summit in 2010.

Thank you.