-- Related Links -- Water Resources Management Water Supply & Sanitation

AT A GLANCE:

·         The World Bank Group is the largest external source of finance for water supply and sanitation, irrigation and drainage, water resources management and other water-related sectors.  It also provides advisory and analytical support to client countries.

Financing for water projects rose from $5.4 billion in fiscal year 2009 to $5.7 billion in FY10 and to $7.5 billion in FY11.

o    Water supply and sanitation accounts for the largest share of all water financing, with $4.3 billion in FY09, $4.2 billion in FY10, and $4.0 billion in FY11. 

o    Lending for irrigation and drainage doubled from $589 million in FY09 to $1.2 billion in FY10, and remained high in FY11 with almost $1 billion. 

o    Water resources management, including river basin management and trans-boundary programs, emerged as a driving theme in the portfolio, increasing from $970 million in FY09 to $1.2 billion in each of FY10 and FY11.

o    Hydropower financing in FY11 was $1.8 billion, up from $237 million in FY09 and $147 million in FY10. 

o    Climate change is becoming a driver of investments, with lending for flood protection at $745 million in FY11, up from $260 million in FY09 and $165 million in FY10.

·         The Bank Group is placing water management at the center of its efforts to help countries adapt to and mitigate the effects of climate change.  It also seeks to ensure that water issues are effectively addressed in related sectors, such as the environment and energy.  As part of efforts to help countries increase food security, for example, we are increasing assistance to agricultural water management.  Much of nearly $1 billion of the Global Agriculture and Food Security Program (GAFSP), of which the World Bank is the trustee, is expected to focus on improving water management.

Water in the Context of Sustainable Development

The global water landscape is changing.  A growing population increases demand for water, causes deteriorating water quality, and increases water stress.  Projections indicate that the population living in water-stressed countries will grow from about 1.2 billion in 2007 to four billion (or from 18 to 44 percent of the world population) by 2050.  Climate change is speeding this up by altering precipitation patterns, causing mountain glaciers to melt, and provoking more extreme droughts and floods.  Managing water for climate change adaptation and mitigation, as well as demands for water security (which is interlinked with food and energy security) requires emphasis on more integrated approaches to water planning, policies, and investments.

What We Do: The World Bank Group and Water

Highlights of the Bank Group’s assistance to client countries for improving water services and water resource management and services include:

• Increased lending in all water sub-sectors from FY09 to FY11, with improvements in project outcomes;
• Strategic repositioning to promote water-smart agriculture and hydropower;
• Integration of water in environment, health and social, and climate change agendas and programs;
• An increase in client assistance for strategic water planning;
• Deeper engagement in critical trans-boundary water issues;
• More strategic analytical and advisory work on water focusing on global water challenges; and
• Strengthened partnerships and enhanced knowledge creation and dissemination strategies.

Partnerships

Donor support continues to leverage Bank advisory and operational assistance for client countries.  The Bank is engaged in two major partnerships on water:

·         The Water and Sanitation Program (WSP) is a partnership hosted by the Bank to support governments in scaling up improved water supply and sanitation services, and hygiene programs for the poor. WSP provides technical assistance, capacity building, and leverages knowledge and partnerships through 125 technical staff in 24 countries. In FY11, WSP’s support amounted to $37 million for 24 countries.

·         The Water Partnership Program (WPP) is a $23.7 million multi-donor program established in 2009 and funded by the Governments of Denmark, the Netherlands, and the United Kingdom. It strengthens Bank efforts to reduce poverty through improved water resources management and water service delivery. During 2009 and 2010, the WPP approved $15.3 million for 158 activities contributing to the Bank’s work in 55 countries. This included support for more than a third of the Bank’s analytical work in water, as well as for preparation and supervision of 83 water-related Bank projects.

In addition, the Global Partnership on Output-Based Aid (GPOBA) is a multi-donor program that aims to increase access to water and sanitation services for the poor through results-based financing that ties disbursement of public funding (mostly in the form of subsidies) to the achievement of clearly specified services or outputs. Twenty-two output-based aid (OBA) schemes in the water and sanitation sector with Bank Group participation are projected to reach 3.9 million beneficiaries.

Future Directions

A strategic review of the Bank Group’s involvement in the water sector, Sustaining Water for All in a Changing Climate (2010), reaffirmed the relevance of core business themes: infrastructure for access, integrated water resources management, and capacity-building for results-based decision-making. Increased focus will be required to:

·         Continue support for water supply and sanitation strategies to help client countries achieve the MDGs, especially on basic sanitation;

·         Ensure the incorporation of water issues in the food security agenda;

·         Address water challenges associated with rapid urbanization, with an emphasis on integrated urban water resource management;

·         Scale up analytical work for hydropower and position it in the global climate change agenda;

·         Address climate variability through improved water storage, flood control, and emergency response preparedness

·         Scale up efforts in promoting public private partnerships;

·         Explore innovative solutions, including wider application of ICTs; and

·         Position water at the center of the dialogue on green growth.

For more information, please see: www.worldbank.org/water

Contacts:          Christopher Neal: (202) 473-2049, Cneal1@worldbank.org

Roger Morier: (202) 473-5675, rmorier@worldbank.org

Updated August 2011