Asian Development Bank

Business Opportunities Seminar

Michiel de LijsterWater Sector Group –

Sustainable Development and Climate Change Department

September 2017

Water Sector Outline

• Context

o Asia’s Water Challenges

o ADB’s “Water for All” Policy

• Overview of the Water Sector Investments

• General Business Opportunities

2

Water Use

Efficiency

6.4

IWRM

6.5

Universal

Water

Access

6.1

Equitable

Sanitation

6.2

Ecosystem

Protection

6.6

Recycle &

Reuse

6.3

Asia’s Water Challenges

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• National water sector reform

• Integrated management of water resources

• Delivery of water services

• Conservation of water and increasing system efficiencies

• Regional cooperation

• Knowledge sharing

• Governance and capacity building

ADB’s “Water for All” Policy

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• 500 million people provided access to safe drinking water supply and improved sanitation

• 95 million people provided more efficient and productive irrigation and drainage services

• 170 million people with reduced risk of flooding

• Integrated water resources management (IWRM) introduced in at least 30 river basins

What do we want to achieve by 2020?

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• ADB’s annual water lending increased from $2.0–$2.5 billion to $3.0–$3.5 billion

• Share of sanitation and wastewater increased to 25% of total water lending

• Urban water utilities on-track towards corporate governance principles and practices

• PSP/PPP projects provide finance of not less than $500 million per year

ADB’s targets in Water Investment

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Rural Water - improving services for health and livelihoods in rural communities such as water supply and sanitation, and irrigation and drainage

Urban Water - sustaining economic growth in cities through investments in water supply, sanitation and wastewater management, and environmental improvement

Basin Water - promoting IWRM and healthy rivers through investments in infrastructure and management of multifunctional water regulation and hydropower facilities, flood management, watershed and wetlands conservation

Investment Areas for ADB’s Water operations

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Water is cross cuttingWater SG covers overall water issues and

facilitates complementarities and synergies

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Urban water supply,

sanitation and sewerage

Urban flood protection

Hydropower

generation

Water cooling

for thermal power

Integrated rural water supply and sanitation

Integrated flood management

Integrated water resources management

Irrigation and drainage

Under the current project classification system,

water operations is reported (with no double counting) in:

WUS - Water and other Urban Infrastructure and Services

ENE - Energy

ANR - Agriculture, Natural Resources, and Rural Development

Agriculture, Rural

Development and

Food Security TG

Energy SG

Urban SG

Strategic Direction: Increased Water Security*(Based on Water Operational Plan)

* Water security is not just being able to provide sufficient water for households and economic activities, but also includes

ensuring healthy ecosystem, and protecting against water-related disasters.

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2016 Operations Achievement

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Irrigation and drainage (ANR)

Flood management (WUS/ANR)

Water resources management, wetlands and watershed protection (ANR)

Water supply, sanitation, wastewater management (WUS)

Hydropower generation (ENE)

Climate finance

Adaptation - $518 million

Mitigation - $33 million

By Subsector

$2.4 billion approved investments

By Operations Departments

0

1

2

3

4

5

6

Annual Average

2011

Actual Pipeline

-2014

2015 2016 2017 2018 2019

Am

ounts

in

$ b

illio

n

CWRD: 463 M (19%)

EARD:634M ( 26%)

PARD:45M (2%)

SARD668M (28%)

SERD: 458M (19%)

PSOD: 150M (6%)

• Total investment portfolio (1968-2016): $46 billion

• Rural Water: $11 billion

• Urban Water: $21 billion

• Basin Water: $14 billion

2017-2018 Pipeline

$ 4.7 Billion

ADB’s Water Investments

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Water Financing Partnership Facility (WFPF)Established on 29 November 2006

Financing Partners

Multi-Donor Trust Fund

(Australia, Austria, Norway (until 2017), Spain, Switzerland)

Netherlands Trust Fund

Sanitation Financing Partnership Trust Fund

(Bill and Melinda Gates Foundation)

Significance:

• Directly supported water operations - 50% of investments supported by WFPF

• Enabled piloting and demonstration of innovations and technology

Resources:

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Climate Change • INO: Flood Management in Selected River Basins Sector Project

• MYA: Irrigated Agriculture Inclusive Development Project

• TAJ: Water Resources Management in Pyanj River Basin

Innovation/Technology• PRC: Shandong Groundwater Allocation and Protection Project

• PHI: Angat Water Transmission Improvement Project

2016 Spotlight Projects

Cross-Sector• BAN: Dhaka Water Supply Network Improvement Project

• PRC: Integrated Wastewater Management Project (non-sovereign)

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2016 Knowledge Management

Climate Finance Tracking Guidelines for Water Sector

Checklist and Methodology on Energy Use in Water Projects

Field Tested in:

• VIE-PPTA: Water Efficiency Improvement in Drought Affected Provinces

2nd Asian Irrigation Forum• Guidance Note: Implementing Best Practices in Irrigation Projects

Asian Water Development Outlook 2016• ADB flagship publication on water security

• Policy dialogue

• Investment pipeline development

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2016 Human Resources Management

Water Loss ConferenceWith International Water Association

• In collaboration with Urban SG

1st ADB-Australia Water Learning Week (water scarcity)With Australia Water Partnership; International Water Centre

Application in:

• IND: Karnataka Integrated and Sustainable Water Resources Management

Investment Program

• VIE: Water Efficiency Improvement in Drought Affected Provinces

5th Asia-Netherlands Water Learning Week (urban resilience)With Netherlands Water Partnership and UNESCO Institute for Water Education

Application in:

• TON: Nuku'alofa Urban Sector Resilience Project (urban resilience)

• VIE: Secondary Cities Development Program (multifunctional flood protection

infrastructure)

Continuous learning and development for Staff

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CWRD - dam rehabilitation

- institutional reform

- river clean-up

- water productivity measurement in

irrigated agriculture

- water security for food

EARD- basin water management

- ecosystem services

- groundwater management

- urban-rural integration of water

resources

PARD- climate change adaptation

- water utilities management

Water Sector Group Priority Areas

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SARD- irrigation modernization

- water accounting in pilot river basins

- water productivity measurement in

irrigated agriculture

- water resources management

SERD- flood and drought risk management

- irrigation modernization

- urban water security and water

resilience

- water accounting in pilot river basins

- water productivity measurement in

irrigated agriculture

2017 Pipeline - $4.2 Billion

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By Subsector By Operations Departments

CWRD:1.4B (33%)

SERD:727M (17%)

PARD:52M (1%)

SARD:1.8B (43%) EARD:

634M (26%)

Irrigation and Drainage1.5B (38%)

Hydropower Generation530M (13%)

Water Resources Management, Wetlands,

and Watershed

Protection

365M (9%)

Flood Management

256M (6%)

Water Supply, Sanitation and

Waste Management1.4B (35%)

Climate Change • IND: Madhya Pradesh Urban Services Improvement Project

• VIE: Ho Chi Minh City Wastewater and Drainage System Improvement Project

Innovation/Technology• IND: Madhya Pradesh Irrigation Efficiency Improvement Project

• INO: Integrated Participatory Development and Management of

Irrigation Program

• PAK: Balochistan Water Resources Development Project

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2017 Spotlight Projects

Cross-Sector• PRC: Yangtze River Economic Belt cluster investment program

Water Sector Group Activities

Policy Dialogue Conceptualization Preparation ImplementationOperations &

Maintenance

PRC: Yangtze River Green Ecological

Corridor Comprehensive Agriculture

Development Project

Reconnaissance Mission

and Concept Support

Country Partnership Strategy

Country Programming Mission

VIE: Water Efficiency Improvement in

Drought Affected Provinces

PPTA support through WFPF Project Team

Member Peer review

CAM: Second Rural Water Supply

and Sanitation Sector Project

Technical support

Pilot and Demonstration Activities

INO: Pilot testing of Aerial/Lidar and

Unmanned Service Vehicle Survey

Data for Irrigation Asset Management

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Guidance Notes

• Implementing Best Practices in

Irrigation Projects

• Integrating Flood Risk

Management and Climate

Change Adaptation

IND: Madhya Pradesh Irrigation

Efficiency Improvement Project

Design-Build-Operate Contract

Knowledge Management

2017 Knowledge Management(Focusing on Cross-Sectoral/Thematic Areas)

Case studies: Innovative Approaches to Flood Risk

Management and Climate Change Adaptation

Collaboration with Environment and CCDRM Thematic Groups

Guidance Note: Implementing Best Practices in Irrigation Projects

Application in VIE: Water Efficiency Improvement in Drought Provinces

Checklist: Improving Energy Efficiency in Water ProjectsPilot testing in:

• IND: Climate Adaptation in Vennar Sub-basin of Cauvery Delta Project

• PAK: Punjab Irrigated Agriculture Investment Program

• UZB: Amu Bukhara Irrigation System Rehabilitation Project

Water Operational Plan 2011–2020: Midterm Review

• Midterm adjustments

• input to Strategy 2030

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(estimated amount for 2017 – water sector)

• Project Preparation Technical Assistance (PPTA): $65 million

• Other Technical Assistance: $7 million

Opportunities for Consulting Services

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A menu of solutions will form the basis for operational interventions over the next 5 years:

• Water use efficiencies across the range of users

• Expanded wastewater management and wastewater reuse

• Embedded integrated water resources management

• Expanded knowledge development

• Technology and innovation

• Enhanced partnerships with the private sector

Business Opportunities

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Michiel de Lijster

mdelijster@adb.org