Water

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Asia Pacific Day Opening, 4th World Water Forum
Water Financing Program: Building on Past Achievements

Remarks By:

Geert H.P.B. van der Linden
Vice-President for Knowledge Management and Sustainable Development
Asian Development Bank

21 March 2006
Mexico City

Introduction

Ladies and gentlemen, distinguished guests, good morning. It is an honor to bring greetings to you on behalf of ADB President Haruhiko Kuroda and as a partner of the Asia-Pacific Water Forum.

Asia's water sector is unmistakably calling for comprehensive solutions. "Asia Water Watch 2015," a new joint-agency report published by ADB, exposes both the progress to date and the problem areas in meeting Target 10 of the Millennium Development Goals. According to the report, one in five Asians still do not have access to safe drinking water, and one in two Asians do not have access to improved sanitation.

Despite these worrisome levels, there has been substantial progress since 1990. For example, access to improved drinking water has increased by 8 percent , with the most dramatic improvement being in urban water supply coverage. And, in many countries in the region, sanitation coverage rates have increased at a rate faster than that of water supply.

Natural water resources are also better managed than before. According to a recent study by the Global Water Partnership, several Asian countries have adopted national water management strategies, and most others have at least begun preparing such strategies.

Action on Initiative from the 3rd World Water Forum

ADB has been, and will continue to be, an important partner in these efforts. Our approach is comprehensive, combining financing with reforms and capacity building activities to ensure that project benefits are sustainable. Let me highlight just a few examples based on our commitments at the 3rd World Water Forum in Japan in 2003:

• First, our Water for the Poor-Partnerships in Action program has brought together financiers, civil society, and developing country governments to improve the quality and level of investments in rural areas. The partnership has been piloted in Viet Nam, where it has identified six provinces to participate in a regional project to fast-track the design of water resource strategies and clarify the links between water and poverty reduction.

• Second, through the Water for Asian Cities Program, ADB and UN-Habitat came together to catalyze greater levels of pro-poor investments in urban water and sanitation. In Madhya Pradesh, India, and Nanjing in the People's Republic of China, the program helped governments and communities prepare reform frameworks, improve governance and institutional efficiency, and identify urban water supply and sanitation projects for financing.

• Third, in partnership with the Japan Water Agency and the ADB Institute, we supported the establishment of the Network of Asian River Basin Organizations. The network has developed into an active regional community of over 50 river basin organizations, marked by opportunities for training and regional knowledge sharing. ADB, in collaboration with the International Water Management Institute, introduced a performance benchmarking and peer review service, which is being piloted in 10 river basins.

• Fourth, through the Gender in Water Partnership, we have been working with the Gender and Water Alliance to promote gender mainstreaming within ADB water projects and relevant activities in developing countries in Asia. This partnership has also undertaken important evaluations and case studies, demonstrating the key role women play in ensuring that the benefits of water projects are sustainable.

Defining Directions: Financing, Reforms, and Capacity Building

Looking to the future, of course, much more needs to be done to assist the region in achieving the MDGs. On our part, ADB's new Water Financing Program, unveiled yesterday here in Mexico City, will significantly increase our water investments between now and 2010, making water a core area of our operations. However, financing alone will not result in sustainable poverty reduction.

Governance must be strengthened, policies reformed and human and institutional capacities expanded if financing is to be effective. Thus, we provide technical assistance grants to encourage our developing member countries to undertake the necessary work to ensure the poor benefit from these investments.

We believe these issues need to be explored further with other development agencies, governments, and civil society. In this regard, we welcome the newly created Asia Pacific Water Forum, and support the initiative for regular Asia Water Summits to encourage all partners to work together. We would like to recognize the leadership the Japan Water Forum has taken to advance the creation of the Asia Pacific Water Forum and we have suggested that the first Summit be held in Japan.

Conclusion

In closing, even with our best efforts, business as usual will not deliver in time to meet the MDGs. In order for the sector to perform to its potential in reducing poverty, we need to place a sharper, more comprehensive focus on financing, reforms and capacity building. I look forward to the collaborative process ahead as a partner in the Asia Pacific Water Forum. And I wish you the best in your time here at the 4th World Water Forum.