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Doubling Water Financing and Results–
Conference on Water Financing Program 2006-2010
Conference Report
26-28 September 2006; ADB Headquarters, Manila
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EVENT DETAILS
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| Date: |
26-28 September 2006 |
| Venue: |
ADB Headquarters, Manila |
| Contact: |
Ellen Pascua
epascua@adb.org
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| Related Materials: |
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Doubling Water Financing and Results was a conference convened by the Asian Development Bank (ADB) to enable both ADB and its developing member countries to identify opportunities for water investments. This is the first major initiative with clients under the new Water Financing Program 2006-2010.
Senior government officials from 5 developing member countries (DMC)—India, Indonesia, Pakistan, Philippines, and Viet Nam—shared with ADB their perspectives on the status of the water sector in their countries. ADB and DMC delegates then jointly identified the barriers that are holding back action, explored solution strategies, and discussed how a range of new ADB products and services can address the countries’ needs. At the end of the conference, each country delegation identified a list of priority investment needs that they can further explore with ADB.
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| Participants |
A total of 78 delegates from five countries (Indonesia, India, Pakistan, Philippines, Viet Nam) participated. Senior officials from the People’s Republic of China (PRC) were also invited but could not attend. However, discussions are now ongoing regarding the conduct of a dialogue in PRC. |
| Event Format |
The 2-day workshop was equally divided between plenary presentations and country dialogue sessions. During the country dialogue sessions, ADB and DMC staff discussed the following:
- barriers to water investments
- practical solution strategies to overcome water programming barriers
- ADB products and services that help implement the solutions and strategies
- opportunities for water investments
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| DMC Participation |
Country delegates actively participated in both plenary and dialogue sessions.
Each country delegation, headed by senior representatives from either finance or planning ministry, also prepared initial assessments of the barriers to their water investments.
The conference sought the participation of non-water sector agencies such as planning and finance to make sure that the water sector issues are understood and investment priorities are supported by government agencies which make investment decisions.
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| ADB Participation |
There was excellent senior management participation, with the President opening the event and the Vice-President closing it. Heads of regional departments and country offices also served key roles throughout the event, e.g. chairing plenary or dialogue sessions, reporting on results, etc. |
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At the end of the dialogue sessions, each country delegation identified priority investment opportunities for their country.
| Rural |
- Meet the funding gap
- Capacity development at local/institutional levels (including assistance in implementing Water Users Association Act)
- Multitranche Financing Facility (MFF) modality to be used
- Assistance in developing sustainable institutional structures at the local level
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| Urban |
- Urban local bodies (ULB) with population beyond 4M, 7 cities only, gap is about 50% - likely to raise own funds
- No real role at the central government counterpart level
- Beyond Jawarhalal Nehru National Urban Renewal Mission (JNNURM), knock on funds requirements at other non JNNURM cities (5098 cities and towns)
- Primary potential for ADB scaling up is the gap at the cities with populations 1m – 4m: 30% potential funding gap
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| Irrigation |
- Existing Water Bodies Rehabilitation
- 20,000 potential projects at MOWR
- WB partly funding, using blended product
- ADB role: In funding balance IF comparable product available
- Utilization of Underutilized Irrigation Potential
- Potential 15 M hectares identified
- ADB Role : Study to identify solutions / package a project with investment, cost recovery, institutional, and regulatory reforms for 1 state
- Developing the Pipeline of Irrigation Projects
- Government of India to explore developing pipeline with states for ADB funding
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| Overall |
- Potential exists for substantially increasing financing in India
- Mainly in the Urban water supply & sanitation sector: funding gaps under JNNURM
- Increasing demand in non-JNNURM towns
- Rural water supply and sanitation sectors – funding gaps under Bharat Nirman
- Potential in irrigation
- Major Constraints
- Limited number of bankable deals thus requiring project by project development
- Need for additional ADB resources for project development
- Closer engagements with States from project concept development to implementation
- Bottlenecks in developing users-pay culture for sustainable projects
- Urban Local Bodies (ULB) capacities
- Lack of concessional funds
- Scope for sub-sovereign lending limited
- Local currency financing to be introduced
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* Indonesia, together with ADB team, prepared their own detailed analysis of barriers affecting the water sector, their vision and investment targets.
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Initial evaluation from over 61 of the 78 participants shows positive feedback as follows:
- 80% of respondents said the conference provided sufficient information that they can act on to accelerate the country investment programs and plans for water.
- 90% said the conference provided useful discussions that will influence their thinking on sector priorities and strategies.
- 80% said the event helped strengthen their relationship with ADB counterparts.
- participants unanimously agreed that the event provided greater clarity on the suitability of ADB products and services to their water needs.
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