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Presentation of Asia Water Watch 2015

Opening Remarks By:

Bindu Lohani
Director General
Regional and Sustainable Development Department
Asian Development Bank

17 November 2005
ADB Headquarters

I. Welcome

Ladies and gentlemen, distinguished guests, colleagues, it is my pleasure to present this important publication, “Asia Water Watch 2015.” The report answers an important question, “Are countries in Asia on track to meet Target 10 of the Millennium Development Goals?” Will they halve the proportion of their people living without sustainable access to safe water and improved sanitation by 2015?

II. Background on Partnership for Asia Water Watch 2015

To find out the answer to this question, a partnership was forged in 2004 between the Asian Development Bank, the United Nations Development Programme, the United Nations Economic and Social Commission for Asia and the Pacific, and the World Health Organization to develop a technical background paper on the status of Target 10 in the region. This publication and partnership complements a more substantive work, the MDG II Report. It was launched at the UN Summit in New York in September. In 2007, a third regional MDG update will be produced by the partnership.

III. Main Messages of Today’s Presentation

A main message you will hear today is that the record of Target 10 progress in the region is uneven. It need not be so, though. A reasonable annual investment could bring the entire region into achievement by 2015. It would also offer social and economic returns that are far beyond initial investments levels.

To be considered on track toward meeting Target 10 in 2015, a country had to show adequate progress in both urban and rural areas, and for both the water supply and sanitation indicators. In 2002, 82% of the population in the region had access to improved water supply, up from 74% in 1990. Yet, 682 million people in the region remained without access to safe drinking water—a third of the population.

The picture is more worrisome for improved sanitation. One half of the region’s population still lacks access to improved sanitation—2 billion of the 2.6 billion people lacking worldwide. Yet, average annual increases in improved sanitation coverage are an impressive 21%—a much higher growth rate than for improved water supply.

Despite the uneven progress in the region, this report estimates that an investment of just $8 billion annually would assure that every country in the region reaches Target 10. Once Target 10 is reached, the $8 billion annually will return $54 billion annually—that is almost 7 times the annual investment made, according to the report. As the report correctly argues, “It is the height of economic irrationality to not invest in these vital services.”

Beyond projections, this report looks in-depth at the relationship between water and poverty. It charts the impact of meeting Target 10 on each of the eight MDGs and their respective targets.

The impact of water is so diffused that every $1 invested in people gaining access to water and sanitation, returns $6 in health, livelihood and education benefits. It is never just water for water’s sake, but water for poverty’s sake. Clean water and improved sanitation can save the poor time, improve their health and provide them income opportunities. For example, meeting Target 10 will mean:

  • A regional savings of $2.5 billion annually in health costs incurred from water-born diseases.
  • An additional $323 million gained annually from increased economic productivity.
  • An additional $232 million generated annually from the number of school days gained from increased attendance and productivity.

IV. Importance of the report to ADB’s water operations.

To harness the poverty-reducing impact of meeting Target 10, we need to think in terms of providing water more innovatively and expeditiously. Business as usual is not good enough. It’s time to do “business unusual”. ADB is strongly committed to working with all partners to improve water supply, sanitation and wastewater management across the region. Our vision, quite simply, is “Water for All.” As a regional development bank, ADB supports Target 10 and the entire MDG agenda in two forms: money and expertise. And we are approaching these areas with greater innovation in the following ways:

  • Water Financing Program:

    • Will expand ADB’s water investments over the next five years.
    • Becoming a core operation.
    • Historically, over one-fifth of our overall lending has been in the water sector.
    • Over the last 3 years1, our lending for water supply, sanitation and wastewater management totaled over $1.5 billion.
    • We expect this figure to rise by about 50% - to more than $2.3 billion – over the next three years.

  • Cooperation Fund for the Water Sector

    • 5-year, multidonor facility to catalyze Water Policy
    • Generated more than $20 million in donor commitments
    • Fosters programs, partnerships and regional networking to improve water management, service delivery and sectoral reforms.

  • Innovation and Efficiency Initiative:

    • Will remove bottlenecks in our business model.
    • Will make us more efficient, selective, focused and client oriented.
    • Will pilot test five new financing instruments and modalities, such as multitranche financing, subsovereign and nonsovereign lending, local currency financing for the public sector, refinancing, financing syndications and risk sharing arrangements and flexible commitment charges

  • Exploring private sector participation

    • ADB does not support private sector involvement, but supports efficiency and sustainability.
    • Gaining a better understanding of the risks as well as the potential
    • Carefully considering the appropriateness and implications

V. Conclusion

As you take this report with you, I wish to remind you that achieving Target 10 in 2015 is only a battle half won. It is only milestone—a halfway marker. For many countries, there may be more than half the population left unserved. As we keep watch over Asia and the Pacific’s water sector, we must keep our eye on 2015 but our mind on the ultimate goal of water for all.

Thank you for your time, and I bid you a productive and insightful discussion today.