Water

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Ministerial Conference, 4th World Water Forum
Water Financing Program: A Comprehensive Response to Calls for Increased Investments

Remarks By:

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

22 March 2006
Mexico City

Introduction
Ladies and gentlemen, distinguished guests, good afternoon. Thank you for the opportunity to make a brief statement on behalf of the Asian Development Bank.

Since Asia is home to the majority of the world's poor, how Asia fares will define the entire global community's success in achieving the Millennium Development Goals. According to "Asia Water Watch 2015," a new joint-agency report published by ADB, the number of people without access to clean water in the People's Republic of China alone is almost as large as all of the underserved in Africa. Despite much progress, the Asia and Pacific region still has far to go to meet the MDG water target. One in five Asians still lacks access to improved water supplies, and one in two Asians lacks access to improved sanitation. In fact, of the 2.6 billion people worldwide without access to improved sanitation, 2 billion live in Asia and the Pacific.

"Asia Water Watch 2015" estimates that the region needs, at minimum, $8 billion in annual investments to meet MDG Target 10 on water supply and sanitation. The report further states that every $1 invested in the water sector will return $6 in time and health savings for the poor. This illustrates the crosscutting potential of water services to dramatically reduce poverty.

The Water Financing Program: A Response to the Region's Needs
ADB realizes the need to invest more. After several challenging years, we are seeing an upward trend in our water sector investments. Looking ahead, we approved $1.4 billion in loans with significant water components, amounting to 20% of our total lending.

On top of that, we approved $27.5 million in technical assistance grants for the water sector, about 14% of total grant awards. Our technical assistance has been crucial to improving governance and removing the institutional barriers to growth in the sector. In anticipation of further growth, we announced just this week a new initiative, the Water Financing Program, to significantly increase ADB's water investments between now and 2010, making water a core area of operations. The program continues our comprehensive approach of financing, reforms, and capacity building and focuses on three key areas:

• Rural water services to improve health and livelihoods in rural communities, through investments in water supply and sanitation, irrigation, and drainage

• Urban water services to support sustained economic growth in cities, through investments in water supply, sanitation and wastewater management, and environmental improvement, and

• Basin water management to promote integrated water resources management and healthy rivers, through investments in multifunctional water regulation and hydropower facilities, flood management, and the conservation and improvement of watersheds, wetlands, and ecosystems.