world bank document information on the eu framework subramanian, shobha shetty, manuel schiffler,...

MIDDLE EAST AND NORTH AFRICA (MNA)

REGIONAL WATER INITIATIVE

MIDDLE EAST AND MEDITERRANEAN REGIONAL DAY

KYOTO, JAPAN, MARCH 2003

Moving from Scarcity to Security through Policy Reform

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SUMMARY REPORT

The World Bank Wor e Wadter CooncThe Wotid Bank " S FILE C O P 3rd World Water Forumr

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MIDDLE EAST AND MEDITERRANEAN REGIONAL DAYMOVING FROM SCARCITY TO SECURITY THROUGH POLICY REFORMKYOTO, JAPAN, MARCH 20, 2003

SUMMARY REPORTJUNE 2003

Sponsored by: The 3rd World Water Forum SecretariatThe World Bank - Middle East and North Africa Region

Table of Content

Page

FOREWARD .iiiACRONYMS .................................................................. iv

SUMMARY OF THE REGIONAL DAY

SectionI. INTRODUCTION. 1

II POLICY REFORMS: CHALLENGES AND ACHIEVEMENTS 52.1 Water: A Critical Issue in the Region. 52.2 Water Policies: Key to Development and Reducing Poverty, presented by

Mr. Peter Woicke, Executive Vice President, The World Bank. 92.3 Resolving Scarcity Problems through Reforms. 9

III. POLICY REFORMS ARE UNDERWAY .............................. . 113.1 Water Policy Reform Achievements in the Middle East and

North Africa Region ...................... ........................................ 113.2 Specific Challenges and Characteristics of Policy Reform in Egypt

and Tunisia .............................................................. 163.3 The Call for Action .............................................................. 21

IV. FOUR PILLARS IN WATER POLICY REFORMS . . 234.1 Management of Groundwater and Aquifers ........................ ..................... 234.2 Water, Agricultural Policies and Food Security ................ ...................... 294.3 Institutional Reforms: Decentralization and Public-Private Partnerships 344.4 Non-Conventional Water Resources .424.5 Issues in the Stakeholder Panel and Thematic Sessions .46

V. REGIONAL ACTIONS SUPPORTING REFORM . .495.1 Partnerships .495.2 Supporting Regional Cooperation through Water Policy Reforms

and Donor Cooperation .51

ANNEXES1. Agenda ................................................................. 532. The Water Panel ................................................................. 593. Statement of Middle East and Mediterranean Regional Day -

From Scarcity through Reform to Security .................................................... 60

- 11-

Foreword

he Middle East and Mediterranean facilitating logistical preparation and the variousRegional Day was held at the 3d World Middle East and Mediterranean countriesWater Forum (3WWF) in Kyoto, Japan on diplomatic representations in Japan for fruitfulMarch 20, 2003. Under its Regional Water discussion and support in preparation of the event.

Initiative (RWI), the World Bank Middle East and In addition we would like to thank Dr. IsmailNorth Africa Department took a lead in Serageldin, Director General, Library ofcoordinating the preparation of the Middle East Alexandria, for serving as the master of ceremonyand Mediterranean Regional Day, in close during the whole event, moderating the openingcollaboration with countries and partner and closing sessions.organizations.

Our thanks are, of course, due to the co-organizersThe Regional Day represented a unique platform of the event -the World Water Council,from which major stakeholders highlighted key UNDP/IDRC, IDB/ICBA and GWP-Med, whosewater challenges and shared knowledge and best critical involvement and contribution to thepractices about the water policy reforms agenda thematic sessions made the Regional Day athey are pursuing to address these challenges. The successful event.Day was also an opportunity to reiterate themessage that addressing regional water scarcity We would like to extend our special appreciationrequires an integrated approach to sustainable to the financiers for supporting the preparation ofwater resources management, with stronger the event, including the 3rd World Water Forumcoordination among regional organizations and (3WWF), the Swiss Agency for Development andnetworks. Cooperation (SDC), Japan International

Cooperation Agency (JICA), Japan OfficialMany people contributed to the success of this Development Assistance and the CanadianDay. First of all, we would like to send our deep International Development Agency (CIDA).thanks to H.E. Dr. M. Abu-Zeid, Minister of Water Thanks are extended to all the resource persons forand Irrigation of Egypt for his active participation their presentations during the thematic sessions, toand for sharing well-appreciated lessons learned the ten panelists whose contributions during thefrom his country's water policy reforms. The closing session were invaluable and to the dynamicintervention of H.E. Mr. Ameur Horchani, group of Egyptian children who performed aSecretary of State, Ministry of Agriculture, the compelling musical show "A Better Future ForEnvironment and Water Resources of Tunisia on You and Me".the country's achievements in the water policyreform agenda was enlightening. Mr. Peter The contributions of many World Bank staff wereWoicke, Executive Vice President of the World instrumental in achieving the Regional Day'sBank, provided stimulating remarks during the success. A special word of thanks is due to theopening session and H.E. Ms. Rodoula Zissi, support provided by the Regional Water InitiativeGreek Deputy Minister for Environment offered Team of Salah Darghouth, Satoru Ueda, Ashokinstructive information on the EU Framework Subramanian, Shobha Shetty, Manuel Schiffler,Directive. We would like to thank the Japanese Nathalie Abu-Ata and Josephine Onwuemene asWater Resources Association for making this event well as Masatomo Watanabe and Naoto Mizuno inpossible, the Secretariat of the 3WWF for Japan.

Vijay Jagannathan Hideaki OdaThe World Bank The 3rd World Water Forum Secretariat

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ACRONYMSAGFUND Arab Gulf Programme for United Nations Development OrganizationsALMAE Alliance Maghreb Mashreq pour l'EauBOT Built Operate TransferCIDA Canadian International Development AgencyEU European UnionFAO Food and Agricultural OrganizationGIC Groupement d'Int6r&t CollectifGWP-MED Global Water Partnership - MediterraneanICARDA International Center for Agricultural Research in the Dry AreasICBA International Center for Biosaline AgricultureIDA International Development AssistanceIDB Islamic Development BankIDRC International Development Research CentreIFPRI International Food Policy Research InstituteIPCC Inter-Governmental Panel on Climate ChangeJICA Japan International Cooperation AgencyLID Land improvement districtsm3 Cubic MetersMEDRC Middle East Desalination Research CenterMIGA Multilateral Investment Guaranty AgencyMMRD Middle East and Mediterranean Regional DayMIO-ECSDE Mediterranean Information Office for Environment, Culture and

Sustainable DevelopmentMNA Middle East and North AfricaMP Member of ParliamentMWRI Ministry of Water Resources and Irrigation (Egypt)NGO Non-Governmental OrganizationNWRA National Water Resource AuthorityPAMIUNEP Plan d'Action pour la Mediterran6ePPP Public-private partnershipPSP Private sector participationO&M Operations and MaintenanceOSS Sahara and Sahel ObservatoryRBA River Basin AuthorityRBO River Basin OrganizationSDC Swiss Agency for Development and CooperationSWUF Scheme Water Users FederationUFW Unaccounted For WaterUNDP United Nations Development ProgrammeWDI World Development IndicatorsWDM Water Demand ManagementWTO World Trade OrganizationWUA Water Users AssociationWRM Water Resources Management3WWF Third World Water Forum

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SLIA}MAR Y OF THE REGIONAL DAY

1

INTRODUCTION

T he Middle East and Mediterranean its Regional Water Initiative (RWI), theRegional Day (MMRD) was held on World Bank Middle East and North AfricaMarch 20, 2003 at the Third World Region was entrusted by the 3WWF

Water Forum (3WWF) in Kyoto, Japan. It Secretariat to coordinate the Forum. Co-was dedicated to issues and challenges sur- organisers of the event includedrounding water resources and offered an op- UNDP/IDRC, IDB/ICBA and GWP-Med.portunity for countries to share their Two regional meetings were held in Spainexperiences in promoting water sector re- (June 2002) and Egypt (October 2002) atforms. An estimated 450 participants from which delegates from 12 countries designedthe Middle East and Mediterranean coun- the MMRD program. In addition,tries attended. participants were involved in various

activities such as (a) conducting analyticalThe objectives of the Regional Day were: and diagnostic studies, (b) holding multi-

country video-conferences to prepare for the1. To present major water issues and on- Johannesburg Summit and (c) holding vir-

going policy reforms in the region; tual conferences on themes of common in-

2. To prepare a regional statement to sub- terest to countries of the region, leading upmit to the ministerial conference at the to the 3WWF.

forum; Several organizations and donors funded the

3. To prepare a regional action plan to ad- preparation for and organization of thedress common water issues and coordi- event, namely, the 3WWF Secretariat, thenate donor assistance strategies; Swiss Agency for Development and Coop-

4. To establish a more rigorous mechanism eration (SDC), Japan International Coopera-to share information among countries. tion Agency (JICA), Japan Official

Development Assistance (Japanese Gov-The Regional Day was the result of a year- ernment), International Center for Biosalinelong collaborative effort with countries of Agriculture (ICBA) and the Canadian Inter-the region and several organizations. Under national Development Agency (CIDA).

Introduction

The MMRD represented an opportunity to the Nile Basin Initiative as an example ofestablish and strengthen partnerships with regional cooperation over shared resources.several organizations and networks involvedin regional water resources; these included H.E. Mr. Ameur Horchani, Tunisian Secre-UN-ESCWA (United Nations Economic and tary of State, Ministry of Agriculture, theSocial Commission for West Asia), Environment and Water Resources, ex-CEDARE (Center for Environment and De- plained some aspects of the "Tunisian suc-velopment for the Arab Region and Europe), cess story" and highlighted the importanceOSS (Observatoire du Sahara et du Sahel), of adapting imported irrigation technologiesICARDA (International Center for Agricul- to local realities and progressively adaptingtural Research in the Dry Areas), Med-Wet them to the institutional framework. He(the Mediterranean Wetlands Initiative), and stressed the Tunisian government's effortsIME (the Mediterranean Water Institute). to treat and use wastewater, adopt progres-Several high-level officials and resource sive pricing and introduce the issue ofpersons from the Middle East and Mediter- drought impact in national water resourcesranean Region also participated. management and planning.

The conference began with a plenary session H.E. Ms. Rodoula Zissi, Greek Deputy Min-at which officials from Egypt, Tunisia and ister for Environment, Physical Planning andGreece presented their experiences in ad- Public Works, gave an overview of effortsvancing their country's water reforms. Dr. by countries of the region in water reforms,Ismail Serageldin, Director-General, Library presented the EU Framework Directive, andof Alexandria and former Chairman of stressed the integrated approach to river ba-GWP, was the master of ceremony for the sin management.entire Regional Day.

At the end of the opening session, a group ofMr. Peter Woicke, Executive Vice President, Egyptian children performed a musicalWorld Bank, gave the keynote speech, offer- show, "A Better Future for You and Me,"ing an overview of water challenges and which described water conservation for newtheir impact on regional growth and socio- generations.economic development. He highlighted theimportance of efficiency and reallocating the After this, four thematic sessions were heldresource to higher value uses, promoting on key water issues agreed upon by theprivate sector participation, and empowering countries during planning meetings. Thesestakeholders. included (a) sustainable groundwater and

aquifer management, (b) water, food secu-H.E. Dr. M. Abu-Zeid, Egyptian Minister of rity and agricultural policies, (c) institutionalWater and Irrigation reiterated the impor- reforms and public-private partnerships andtance of integrating the management of wa- (d) non-conventional water resources. Eachter resources. Also, he stressed the need to session was the result of collaborative ef-optimize available water resources by (a) forts among partner organizations and of-modernizing existing irrigation systems, (b) fered case studies from countries andinvolving stakeholders, and (c) establishing resource persons from the Middle East andpublic-private partnerships. He pointed to the Mediterranean Region. Some drew upon

244

Introduction

World Bank RWI analytical and diagnostic scarcity requires an integrated approach thatstudies. The case studies were also exten- stresses greater water efficiency, developingsively discussed by country representatives and managing non-conventional water solu-and organizations during the 2002 RWI re- tions, and regional partnerships for sharinggional consultations. knowledge.

At the closing session, participants discussed The following report has four sections. Sec-various topics from the thematic sessions tion 1 summarizes water issues and stressesand offered recommendations for the Re- the key role of policy reforms to achieve wa-gional Statement. The session featured a ter security. Section 2 describes the physi-panel discussion, composed of ministers cal, institutional, economic and environ-from the various countries, stakeholder mental reforms underway in some of thegroups (ALMAE, the federation of irrigation countries and presents policy achievementsassociations of the Mediterranean, MIO- in Tunisia and Egypt. Section 3 addressesECSDE) and regional organizations/ net- the issues covered in the thematic sessionsworks (PAM/UNEP; GWP-MED); the panel and offers recommendations for policy re-presented options to advance regional coop- forms. Section 4 builds on the closing ses-eration and financing needs. sion panel discussion and presents

recommendations for more efficient regionalA critical message from the day-long con- cooperation among countries, networks andference was that dealing with regional water donors.

*3

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POLICY REFORMS: CHALLENGES AND ACHIEVEMENTS2.1 Water: A Critical Issue in the Region

A. MNA: The world's most arid region B. Limited and uneven access toimproved water supply and sanitationM v } 'NA has only 1% of the world's

accessible freshwater. Rainfall is In 2000, about 31 million people in the re-low, erratic and poorly distributed. gion lacked access to safe water and more

More than a third of the river supply flows than 51 million lacked access to safe sanita-from countries outside the region. Further, tion. However, these figures hide importantfloods and droughts have plagued the region disparities both among and within countries,in recent years. Available water per capita and between urban and rural sectors. Fornumbers are among the lowest in the world, example, only 31% of the rural population inwith less than 1,200 cubic meters per person Iran and Yemen had access to improvedin 2000. The problem is exacerbated by in- sanitation as opposed to 91% and 98% increasing population growth, which more Egypt and Jordan, respectively. In addition,than doubled in the last 30 years, reaching only 30% of Oman's rural population, andover 300 million in 2000. Worse still, it 64% in Saudi Arabia and Syria, had accesscould double again in the next 30 years, with to improved water sources in 2000, com-dire effects on water demand. Annual per- pared to 94% in Egypt and 88% in Algeria.capita availability is predicted to fall by 50%to about 650 cubic meters by 2025, while 14 C. Mining groundwater, destroyingcountries have already reduced renewable resourceswater availability per capita to less than 500cubic meters a year--a level used to define a In most countries, extraction levels are well"water barrier" to growth, beyond which beyond the rate of annual recharge; thisscarcity becomes a key concern in people's causes seawater to intrude and pollutants tolives and affects overall development. seep into the supply. For example, in JordanWithin the next 30 years, most countries in and Yemen, extraction is more than 150% ofthe region will cross that barrier and experi-ence even more severe water shortages.

*5

Policy Reforms: Challenges and Achievements

the renewable resource base.' Though al- The Nile waters in Egypt are contaminatedready grim, these national averages mask by uncontrolled industrial and agriculturalsignificant local variations. In the Sana'a discharges. The poor water quality of Lakebasin, abstraction is more than three times Manzala in the Nile Delta, once supplyinghigher than recharge, and in Gaza, aquifers 30% of Egypt's total fish catch, noware being depleted even faster. Such threatens wildlife, ecosystems and the healthover-exploitation risks further damage to and livelihoods of many people, whileunderground water reserves through the in- polluting the Mediterranean Sea.trusion of seawater or the leakage of pollut-ants. While not yet as dire in the Maghreb Polluted water and deficiencies in water re-countries, shortages due to over-extraction sources management, supply and sanitationof groundwater are imminent. are increasingly seen as key elements in en-

vironmental health policies. Coupled withD. Shortages compounded by pollution hygiene practices, increasing the sustainable

access to water supply and sanitation willWidespread dumping of municipal and undoubtedly reduce water-related diseasesindustrial wastewater into rivers and lakes, and improve environmental health.solid waste deposits along river banks,uncontrolled seepage from unsanitary E. Water is used inefficientlylandfills and contamination by fertilizers andpesticides are all degrading freshwater Irrigation. Due to the predominance foodresources. This process increases health self-sufficiency and rural employmentrisks, especially for children (the primary policies, the region allocates 89% of itsvictims of water-related diseases), and water resources to agriculture. However,threaten the livelihoods of many. Moreover, water use and safe re-use in agriculture isthe lack of sewage treatment systems is very inefficient: On average, only aboutpolluting groundwater. Surface water run- 40% of the water reaches the crops.off also affects agriculture and irrigation,ultimately contaminating food and Urban supply. Up to 52% of the bulk waterincreasing infectious disease risks. Due to supplied to cities is not billed to water userssuch water pollution, the countries' and is thus considered "unaccounted-for-economies are severely strained. For water" (UFW). This is a very high figureexample, the cost of environmental when compared to the under 20% achieveddegradation due to water pollution was by well-run utilities: For example, UFWrecently estimated at 1.2% of GDP in ranges from 52% in Amman to 21% inMorocco and Jordan, 1% in Egypt, and Tunis. UFW can be divided into two0.7%-1% in Algeria, Lebanon and Tunisia. components: physical losses and commercialMorocco's most important river, the Sebou, losses. According to some estimates,has become a waste dump for the cities commercial losses (illegal connections,along its banks. Algeria's Mitidja and Saida malfunctioning meters, incorrect meteraquifers are threatened by urban pollution, reading, faulty billing) constitute the majorindustrial effluents and agricultural runoffs. portion of UFW in some MNA cities.2

ISource: Workshop on Sustainable Groundwater 2 Source: Urban Water and Sanitation in the MiddleManagement, MNA Regional Water Initiative, Sum- East and North Africa Region, the Way Forward, themary Report, Sana'a, Yemen, June 2000 World Bank, 2000

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Figure 1Projected Renewable Resources

Per Capita by Major RegionYear 2025

0 1960

16 - E 2000

U 14 - _Q 02025

X 12 -

Ql 10 -.ci)

E

C-)

World MNA Asia Africa

Source:World Development Indicators, 2002. World Bank Group, Washington, DC (The renewable resource data inWDI 2002 was compiled from the World Resources 2000-01 and supplemented by the FAO's Aquastatdata);World Bank Estimates (for MNA 2000);

World Resources: 5-volume index, volumes 1986 through 1992-93, World Resources Institute, 1993, Wash-ington.

0+7


Table 1: Water Availability and Usage in MNA Countries

Annual A%ailability Annual Waler Use % Usage bh Seclor

Natural Per capitaReLneable Desalinized Wastevkaier Renewable as a % of AgricuI-CounIr) Resources Unter Re-use Asailabiliti. BCNI fatal faler Domestic Indusir) lure

( BCNIA rJ (BC. I) r) (BCMI/yr) Sear 2000 Resources u(C(NI)

Algeria 11.50 0.07 n a 380 4 59 40 25 15 o0 |Bahrain 0.11 0.04 n.a. 214 0.25 170 26 3 71Ditioun 0 02 0.00 n.a. 24 0 02 113 88 0 12Egypt 61.90 0.06 5.90 1060 73.10 108 6 8 861r:i- 129.W0 0.11 n.a 2028 70 30 54 h 2 92Iraq 80.00 0.03 n.a. 3441 42.80 48 3 5 92Israel I 1.56 0.10 0.24 307 1 71 90 29 7 64Jordan 0.87 0.00 0.07 193 0.98 104 26 7 68Kuwait 0 II 0.65 0.12 438 0.76 87 37 2 601Lebanon 3.20 0.00 n.a. 740 1.29 40 28 4 68Libya 0 S0 0.03 n a 157 3.89 469 9 4 87Malta 0.04 0.03 0.00 193 0.02 28 96 0 -

Nlonxco 20.00 0.01 0.07 701) 16.84 84 5 - ||Oman 1.60 0.03 0.02 687 1.22 74 9 1 93Qatar 0.05 0.12 n.D 293 028 23 3 74

Saruabdia 2.50 0.71 0.15 162 17.00 506 9 I 90

SynanmArab 18.70 0.00 0.26 I 122 14.70 78 9 l 87Republic

Tunisia 3.35 0.14 365 2.53 72 12 4 84

UAE 0.20 0.55 0.14 307 1.60 IS0 24 10 67

&WGank 0.76 0.00 0.01 260 0.44 57 51 49

TotalIAverage % 339 3 n.a. 1135 258 72 7 4 39MNA

Sources: Govemment figures, World Bank MNA Region estimates, FAO, World Development Indicators 2002,World Resources 2000-2001: People and Ecosystems, the Fraying Web of Life; 2002 IDA Worldwide Desalting PlantsInventory, Report no. 17Definitions:

Annual Renewable Resources: total renewable freshwater resources, including mobilizable surface water and non-fossilgroundwater in country as well as net river flows from other countries.

Annual Withdrawal: refers to total water withdrawal, including desalinized water resources in countries where they aresignificant and non-renewable groundwater (aquifers). Withdrawal does not include evaporation losses.

8 4


2.2 Water Policies: Key to Development When populations were small and largelyand Reducing Poverty, presented by rural, and food security was a top priority,Mr. Peter Woicke, Executive Vice Presi- supply had to be expanded and agriculturedent The World Bank. promoted. However, today's efficient inter-

national grain markets can deliver importedAlthough MNA countries modernized their wheat at around $130 a ton, far less thaneconomies and social systems remarkably when grown in the region (which requiresover the past 30 years, progress now is up to 1,500 cubic meters of water).hampered by high population growth,political instability and conflict, governmentdominance of economic activity and limited 2.3. Resolving Scarcity Problems throughintegration into global markets. Indeed, 4 Reformsmillion jobs are needed each year, but publicsector employment is reaching its limits and Thus, policy reforms must focus on increas-the investment climate it not greatly ing water efficiency through pricing meas-conducive to increased private activities. ures, reallocating water to higher value uses

and promoting public-private partnerships.In no other region is water as important to Further, while reorienting water policies,growth, development and reducing poverty. countries must ensure that all stakeholdersFor years, huge investments brought water are empowered and their needs considered--and sanitation to millions and helped especially those of the poor.agriculture to develop. Still, demand forwater outstrips supply: A destructive cycle The region needs to integrate with and com-has emerged where water shortages impede pete in the global economy. To achieve this,growth, which leads to less capital for it must promote a dynamic private sectorproviding the water needed for rapidly that can produce and export competitively.expanding populations and the economic This will involve greatly increasing invest-activity required to support them. This ment in the sector, along with educating anddegrades the quality of life (especially for training human capital.the poor)--34 million people lack safe waterand over 55 million lack sanitation--and Agriculture could adopt water saving tech-exacerbates social tensions. If continued, nologies such as drip irrigation (twice ascurrent practices may plunge the region much can be produced with half the waterdeeper into crisis; and, conflict over scarce used in traditional irrigation methods) andresources at local and national levels is introduce advanced systems to achieveinevitable. greater efficiency, along with capacity build-

ing and training programs. Further, agricul-However, through an integrated approach to tural water prices will gradually need to risemanaging sustainable water resources, to be more closely related to the costs ofcountries could mobilize popular support to supply and deter uneconomic use.conserve water, reconcile competing claimson limited resources, allocate water to Moreover, a less water-intensive agriculturalhigher-value uses, prevent pollution and system coupled with reduced loss in munici-focus international support for water pal systems could eliminate the need for in-initiatives on priority areas. vestment in new water supply for the next

*9


decade. While such improvements are ages: Thriving economies can afford to usecostly, net investment savings would in- unconventional sources such as desalinationcrease the capital available for private in- to supplement freshwater supplies. This willvestment and upgrade the physical only materialize if strong programs to saveinfrastructure (including water delivery net- and reallocate water eliminate the water bar-works) needed for private sector growth. It rier to growth. For example, Malta is a smallcould also expand water supply for house- open economy that is chronically short ofholds (including sanitation), which would freshwater, but successfully used economicreduce the human costs of impaired health growth to supply 70% of its water needs bydue to water-borne diseases. desalination.

If "water for growth" strategies can avert a The Mediterranean countries can share theirsupply crisis and raise water's value added in lessons with MNA on how they overcamenational economies (and hence contribute to water barriers through management policiesgrowth), then "growth for water" strategies and practices to help develop nationalcan ultimately resolve regional water short- economies.

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-~~~POLICY REFORMS ARE UNDERWAY

3.1. Water Policy Reform Achievements in the Middle East andNorth Africa Region

In the 1990s, water policy shifted dra- * Introducing sound economic principlesmatically in several MNA countries. in policy decisions and practices;Supply augmentation policies, dominant * Improving water quality.

in the 1970s-1980s, were no longer the pri-mary concerns, while managing demand was A. Reducing water lossesseen as vital. The aim was not only to seeknew water supplies but to increase the pro- Unaccounted-for-water (UFW) is a majorductivity and efficiency of existing water problem. To reduce losses, utilities haveresources, as well as those to be developed adopted leak detection programs, rehabili-in the near future. tated networks and meters and replaced

leaking hose connections, which had a sub-Many countries embarked on policies and stantial impact in several countries. How-actions to address issues at the physical, in- ever, curtailing loss is not limited to utilitiesstitutional, economic and environmental but extends to all water users, and water-levels. Reforms include: saving devices are needed for irrigation as

well as municipal use. Thus, innovative in-* Reducing water losses, both in rural and struments are being applied: For example, in

urban areas; Tunisia, matching grants were obtained to* Reducing groundwater over- adopt water-saving technologies, while in

exploitation; Jordan and Egypt, public awareness cam-* Making irrigation more efficient; paigns were organized to encourage water* Finding alternate sources of water sup- conservation.

ply;* Promoting institutional and legislative B. Reducing groundwater over-

reforms; Exploitation* Preparing national water strategies and

well-designed laws; Groundwater resources are being depletedthrough the mining of fossil aquifers oroveruse of renewable aquifers. To correct

*11

Policy Reforms are Underway

this, countries are (1) creating well- able options to augment water supply. Al-protection zones to prevent further extrac- though most of the efforts to use thetion from over-depleted sites (Tunisia), (2) wastewater are being applied in an un-banning new drilling wells in some areas planned manner, some activities are also be-(Syria), (3) closing all private wells that are ing targeted. For example, in Jordan, aover-logged and (4) providing water to program of consolidated investments to treatfarmers through a more limited number of wastewater has been devised for major cit-collective wells to reduce well-interference ies. Using the wastewater for irrigation isproblems. (Well-interference occurs when a now substantial and the share of total treatedhigh-capacity well causes the aquifer around wastewater used is projected to increaseit to lose water in a pattern known as a cone from 18% in 1998 to about 34% in 2020of depression. Wells located within the (The World Bank, 2001).''cone" may experience lower water levelsand have problems getting water if the level Desalination costs have progressively de-is lower than the well pump). clined, now at US$.50-$.90 per cubic meter

for seawater and US$.20-$.40 per cubic me-Yemen, for example, is also adopting mac- ter for brackish water. The Gulf countriesroeconomic measures to increase the price are the most heavily involved in desalinationof diesel and raise import duties on drilling in MNA, where desalinated water representsrigs and pumping equipment, as it is ex- a high percentage of municipal and indus-pected this will reduce over-exploitation. trial water supplies. However, because of theThese measures are coupled with rules and high cost of delivery, desalination remainsincentives to motivate stakeholders to re- an expensive alternative for most countries.duce the overdraft and apply water to itshighest value. E. Promoting institutional and legislative

reformsC. Making irrigation more efficient

Institutional and legislative reforms are es-Improving irrigation efficiency is a pillar of sential as they provide the framework for thewater policy reform in most of the countries. water sector. In the region, the reforms needFor example, Egypt, Oman, Jordan and Tu- to focus on (1) restructuring water authori-nisia are increasingly using water-saving ties to better coordinate the work of publicirrigation techniques. Governments are also entities and make administration practicesapplying financial incentives such as tax- more efficient, (2) developing participatoryfree, low- interest loans to meet the capital management and strengthening water-usercosts of sprinkler and drip irrigation systems associations (WUA), (3) introducing clearand are readjusting the price of irrigation water strategies and rules/regulations, (4)water to reflect its true scarcity cost. creating water ministries and (5) strengthen-

ing the role of the private sector.D. Finding alternate sources of water

supply Restructuring water authorities. To addressthe weakness and relative inefficiency of

In several countries, the use of treated public water entities, some countries havewastewater and desalinization are now vi- begun to restructure their water authorities,

1244


streamlining the institutions and services; Agencies (RBAs) in 1995 to coordinate wa-this is being done to separate the manage- ter management in a single integrated entity.ment of the resource (mainly a government These were established as semi-autonomousfunction) from the delivery of water (han- public agencies with legal status and finan-dled either by public or private entities). In cial autonomy to manage single or multipleso doing, governments have reduced dupli- river catchments. Also, the agencies werecated responsibilities and tasks within the given wide powers including entering intowater institutions and encouraged the prac- contractual arrangements with all types oftice where water resources are managed at bodies, agencies and institutions to carry outthe lowest appropriate level. their functions, mandates and responsibili-

ties.In addition, some countries have consoli-dated all-water related functions under a Developing participatory management.single Ministry to avoid overlap of various Several countries have made considerablemandates and responsibilities. In Tunisia, progress tackling institutional and legislativefor example, the Ministry of Agriculture, reforms by developing participatory man-Water Resources and Environment, created agement schemes. For irrigation, countriesin 2002, is responsible for managing water now rely more on water user associationsresources, all water sectors (urban and (WUA) to perform some management func-rural), as well as the environment. This tions, with the aim of achieving autonomyrepresents a significant change since envi- and financial self-sufficiency. For example,ronmental issues were previously handled Tunisia is progressively delegating respon-by the Ministry of Environment and Land sibility for managing irrigation systems toUse and Planning, which no longer exists, water user/owner associations known aswhile irrigation issues were handled by the "Groupement d'Interet Collectif' or GICMinistry of Agriculture. At the same time, at (Associations for Common Interest), whichthe provincial level, the management of irri- have legal status and financial autonomy.gation and water resources has been decen- They are in charge of constructing, operat-tralized to the country's 23 public provincial ing and maintaining potable water supplyoffices, which are financially autonomous. systems and irrigation schemes. More thanThe purpose is this change is to encourage 2,000 associations operate across the coun-the management of irrigation and water re- try, provide more than 35% of water supplysources at the lowest appropriate level. to rural populations, and cover more than

40% of public irrigated areas. In the future,In Morocco, the Government restructured their activities will extend to large-scale irri-and strengthened the legal status of the High gation and agricultural development pro-Council for Water and Climate. Chaired by grams.the Prime Minister, the Council is mandatedto coordinate water resource policies and In Yemen, the Government launched a pro-future water strategies. Since the restructur- gram to increase user participation in man-ing, the Council is composed of major aging spate irrigation (a process where floodstakeholders from the public and private sec- water from mountain catchments is divertedtors, including water user representatives from river beds and spread over large areas).involved in water management. In addition, The strategy is to decentralize responsibilitythe Government created nine River Basin to scheme-level organizations and promote

O+13


user participation in financing and managing several countries have created separate min-operations and maintenance (O&M). The istries to deal with water issues. In Oman,program will support a three-stage decen- the Ministry of Water Resources was estab-tralization and user participation process. lished in 1989 to integrate the managementFirst, with respect to the canals, the WUAs of water resources and strengthen the policy(based on existing informal water user development and planning capabilities. Ingroups) will be responsible for O&M. Sec- Jordan, the Ministry of Water and Irrigationond, at the scheme level, the associations was created in 1992 to oversee water poli-will be federated into a Scheme Water Us- cies and strategies, planning, research anders' Federation (SWUF) that will be respon- development, information systems, and pro-sible for its O&M, except for the headworks. curing the financial resources needed to im-Third, a scheme-level irrigation council will prove water resources. In Yemen, a newact as a joint farmer/government forum for Ministry for Water was recently created, re-ensuring public interest aspects of water sponsible for urban and rural water supplymanagement and setting water charges. and sanitation, as well as water resources

management and irrigation--tasks that wereIn Egypt, the Irrigation Improvement Project previously scattered among various minis-was introduced to upgrade the physical and tries and authorities.organizational aspects of irrigated agricul-ture. This entailed creating WUAs and en- Strengthening the private sector role. Pri-hancing cooperation between the irrigation vate sector participation has become an at-directorate and farmers. Supported by physi- tractive option for governments to improvecal improvements, farmers' participation performance and efficiency in the water sec-(both men and women) is leading to more tor. The most ambitious effort in domesticreliable water services, which, in turn, raises water was launched by Morocco. By 1998, itcrop production and farmer satisfaction. included three concessions (in Casablanca,

Rabat, Tanger and Tetouan) and more areF. Preparing national water strategies planned. In 1996, Gaza awarded a water

and well-designed laws services management contract to the privatesector to help local governments and the

Several countries are revising or preparing Palestinian water authority improve waternew national water strategies/plans to reflect service.innovative approaches to integrated waterresources management (inter-sectoral coor- G. Introducing sound economic principlesdination, decentralization, participatory in policies and practicesmanagement, and environmental/financialsustainability). The strategies/plans will then In almost all the countries, the costs of pro-serve as a basis for developing water laws viding water to both urban and rural areasand be used as the framework for investment are not fully recovered. Tariffs for urban wa-programs and policies. ter supply are subsidized, with the cost of

water averaging about 2% of income. In ir-Creating water ministries. Given the in- rigation, fees cover only 6% of the cost ofcreased awareness of the importance of wa- water delivery (in Jordan). Such under-ter resources to the national economy, pricing leads most countries to a vicious

1444


downward spiral, where services deteriorate lecting revenues from meter charges is oftensince financial resources are not sufficient to difficult. However, the need to improve costcover costs; further, inadequate service leads recovery and achieve better O&M are cru-to fewer revenues being collected. cial issues if countries are to take on high-

cost projects such as desalination or expand-The lack of financial resources has led sev- ing the coverage of wastewater treatment.eral countries to adopt policies such as (1)improving cost recovery from beneficiaries Increasing the financial and productivity re-and (2) raising the financial and productivity turns of water attracts funds from outside thereturns to water. sector and provides profit incentives for pri-

vate enterprises to increase their participa-For example, some have increased urban tion. Conversely, low economic returns inand rural water tariffs to better cover the certain sectors reduces the capacity for in-cost of O&M in water supply. Tunisia investment and the potential to substitute morecreased its urban water tariffs four times expensive water resources such as reclaimedover the past eight years (1996-2003). Jor- wastewater or desalination. Recently, somedan also increased urban block tariffs; under countries realized the need to increase thethis system, the first 5-10 m3 are charged a value added and improve the productivitylow, subsidized rate and the next blocks and financial returns to water in agriculture.have increasingly higher tariffs. The ration- In Tunisia, the 2000 water resources man-ale is to encourage households to save water agement plan focused on maximizing theand also ensure that the poor can afford economic value of water and on its efficientenough water water to keep themselves and management; the plan was tailored to eachtheir environment healthy--typically 50 li- subregion country within the country ac-ters/per capita/day. In Jordan, the 1997 cording to its social and economic character-change raised the degree of progressivity, istics and capacity for change.and generated significant revenues from alarge volume of consumers. In Syria, the H. Improving water qualitycost of O&M for irrigation and drainageschemes is recovered partly from farmers in Although untreated municipal and industrialthe form of service charges that are periodi- sewage is still released into the environment,cally reviewed and modified by a committee efforts are underway to improve the region'sof the Supreme Agricultural Council; al- water quality. However, while environ-though still subsidized as of December mental regulations have been adopted, en-1999, service charges to farmers were in- forcement and compliance mechanisms arecreased to $75/ha to meet O&M costs. Due still the key issues, along with building ca-to this reform, water charges will cover pacity and raising awareness.about 40% of capital costs in the irrigationsector, making Syria one of the few coun- In Morocco, the 1995 Water Law providedtries in the region that has tried to recover for integrating water quantity and qualityinvestment costs for new projects in recent management and introduced a tax based on ayears. "polluter pays" principle. In addition, the

law will enforce abstraction and effluentDespite these advances, increases in water discharge permits, and it introduced sanc-tariffs remain a political problem and col- tions and penalties for violations. It also

*15


aims to protect water quality by defining Egypt shed light on the complexity of theenvironmental mandates and enforcing sanc- task.tions and penalties: It specified that the re-lease of pollutants or polluted water into 3.2.1 The Egyptian experience, presentedrivers and aquifers is either prohibited or by H.E. Dr. Mahmoud Abu-Zeid, Minis-authorized only by a permit approved by the ter of Water Resources and IrrigationRiver Basin Authorities (the body responsi-ble for monitoring water quality) and that One of the major challenges in the waterpollution charges will be collected if regula- sector is to close the rapidly increasing gaptions are ignored. The challenge now is to between limited water resources and escalat-fully implement these laws. ing demand created by development in vari-

ous economic sectors. To meet the demandIn Jordan, since the mid-1990s, water qual- and, at the same time, ensure the sustainableity has been improving. Existing standards use of water resources, Egypt has had to op-were re-assessed and some joint monitoring timize the use of conventional sources, asmechanisms between different ministries well as investigate the feasibility of non-and authorities were established. Laborato- conventional sources. The country has con-ries were upgraded and an early warning sidered reclaiming huge amounts of land tosystem is now in place. Some progress was add to the current acres of arable/cultivablemade in controlling industrial effluent dis- lands. These tasks are critical, since irriga-charges into sewers through permits and in- tion, and by extension, the agricultural sec-centives for adopting clean production tor, are vital for the economy and crucial forprocesses are being examined. Regulations the Government in its fight to reduce pov-and guidelines for drinking water supply erty and provide better sanitation to thethrough proper use of private tankers and population: The sector alone consumeshousehold storage are being strengthened, around 85% of the country's fresh water re-including through increased public aware- sources, contributes to about 20% of localness. production and about 20% of exports, and

accounts for approximately 34% of the3.2 Specific Challenges and Characteris workforce.

tics of Policy Reform in Egypt andTunisia Faced with these challenges, the Ministry of

Water Resources and Irrigation (MWRI),Although some countries have taken signifi- adopted an integrated management approachcant steps to restructure their water sectors that combines all available resources(as indicated above), reforming water poli- (freshwater canals, drainage water andcies is a relatively new process in MNA; groundwater) to meet the water demands ofsuccess will depend mainly on the depth and different users. The approach requires fullrealism of each reform, on the participation coordination between government institu-of all stakeholders and more important, on tions at all levels, and active participation ofeach country's ability to enforce the new water users in planning, managing and oper-policies. During the opening session of the ating irrigation and drainage systems. TheRegional Day, lessons from Tunisia and Government recognizes that only with re-

forms will it be able to promote environ-

1644


mental and ecological sustainability and that and rehabilitating existing grand bar-

users and the private sector will play a rages and control structures on the Nilegreater role in water management and ser- and main canals);vices.

B. Protecting water quality and reducingNew policies pollution through preventive measures.

These include regularly assessing waterGiven the new approach, the Ministry pre- quality, enforcing the laws and coordi-

pared a National Water Policy (from the nating long-term policies with otherpresent until 2017), which includes the fol- ministries. Also, subsidies on fertilizerslowing themes: and pesticides were removed and public

awareness programs on water conserva-A. Optimal use of available water resources tion were launched.

(improving irrigation systems on thebranch and field canal levels, installing a C. Developing new water resources in co-

tile drainage system, improving irriga- operation with the Nile Basin ripariantion and drainage pumping stations, in- countries.troducing new crop varieties, replacing

)+17


Box 1: Elements of water sector reform in Egypt's irrigation system

Reforms are expected to occur at three levels.

1. Decentralization and management transfer in the old landsAs agriculture expands to new areas in the Nile Valley, the Ministry of Water Resources and Ir-rigation budget is increasingly strained. To reduce the Government's financial burden, the Minis-try is progressively decentralizing the management of water/irrigation to water boards--organizations based on representation. The boards operate at the secondary (branch) canal levelor above. With respect to the O&M of Government-owned infrastructure, the new draft Law 12for Irrigation and Drainage delegates part of the management or transfers complete control to thewater boards or specialized companies.

2. Reform in MWRI servicesThe Ministry provides many services to the general public and various sectors. It is responsiblefor authorizing water use and managing surface and groundwater resources. Also, it manages thedesign, construction, O&M of all water resource infrastructure and irrigation/drainage networks,introduces water quality laws and protects the Nile. To improve public works and management,it intends to expand the private sector's role-either through privatizing part or all of various ac-tivities/responsibilities, or by privatizing ownership.

3. Reform in the new lands (mega projects)The Government plans to increase habitable land from the current 5% to 25%, and increase thecultivable land area from the current 8 million acres to 11.4 million acres by 2017.

Reflecting its commitment to greater private sector participation in development projects, theGovernment created two holding companies to manage, operate and maintain the irrigation/drainage networks in Toshka and North Sinai activities. Also, the companies will provide appro-priate services to investors and small farmers. They will raise sufficient funds through servicecharges from beneficiaries in the projects and the sale of new lands to investors. Each holdingcompany will consist of several smaller companies and offer a greater role to the private sectordirectly at the start. Main infrastructure, including irrigation/drainage networks and pump sta-tions, will remain Government property to be maintained and operated by MWRI.

1844


Lessons Learned forms in terms of efficiency, cost andhuman resources. The evaluations would

The most important experiences to date in- in turn provide feedback to policy makersclude the following: for necessary changes-both in policies

and processes.1. All stakeholders need to participate in the

design and implementation stage of re- 3.2.2. Policy reform in Tunisia. The needforms. If involved, stakeholders will have for reform, presented by H.E. Mr. Ameurmore input on the performance of the ir- Horchani, Secretary of State for Waterrigation/drainage systems and obtain Resources and Fisheries, Ministry of Ag-greater control of financial contributions riculture, the Environment and Waterto maintain the infrastructure. Overall, Resources.such participation builds interest, com-mitment and ownership, in addition to the Water resources in Tunisia are scarce andconsensus on the need for change. irregular. Among the Mediterranean basin

countries, Tunisia has one of the lowest lev-2. Reforms for the irrigation subsector need els of available water and it is estimated that

to be developed and promoted in close per capita water availability will drop tocoordination with relevant agencies, de- 315m3 by 2030. Also, the extent of surfacepartments, entities and stakeholders. water varies greatly depending on the area--

10 being the maximum/minimum ratio be-3. Existing laws need to be reviewed and tween the north and the south of the country.

updated to create an enabling environ-ment in which reforms can flourish and In the early 1990s, authorities decided thatthe private sector assumes a greater role. various policies needed to be changed.This is key with respect to private sector These included increasing mobilization costsparticipation because companies could and investments for maintenance and re-exercise monopolistic behavior due to a placement operations, and meeting waterlack of competition. Human resources users' expectations for a modem and trans-must also be developed, among officials parent management to match Tunisia's newand stakeholders, to help them understand economic and social environment. Waterand introduce the new regulations. policy reforms were based on the process for

providing the limited but expensive resource4. Prior to large-scale application, reform (water) and managing the increased demand.

policies/activities need to be introduced The supply strategy was based on an ap-on a pilot basis. The implementation proach that integrated planning systems atprocess needs to be monitored and evalu- the local, regional and national levels, andated regularly with performance indica- made a priority of optimizing comparativetors. Evaluations should also assess the advantages and integrating conventional andeconomic and social impacts of the re- non-conventional resources.

* 19


Box 2: The 10-year Program of Reforms in Tunisia

A 10-year program was designed and introduced from 1990-2000 that aimed to:

/ Provide most Tunisians with potable water--100% in urban areas and 83% in rural areas;V Create irrigated areas throughout the country, 35% of which would permit regular, intensive

and permanent production;/ Meet the water needs of industry and tourism;/ Introduce used-water collection systems and create about 60 water treatment stations,

thereby protecting the natural environment against pollution and recycling water for futureuse;

v Protect citizens against the harmful effects of drought and floods.

Achievements day, 150 million m3 are treated, part ofwhich irrigates 7000 ha, and desalination

Tunisia developed a complex and diversified capacity is 50,000 m3/day. The use ofhydraulic infrastructure throughout the conventional water resources is signifi-country to mobilize its water resources. As a cant and supply is expected to meet totalresult of the strategy and reforms described water demand, which accounts for the in-above, the country ensured food security and creased population and improved stan-improved the quality of life in urban, rural dard of living, by 2030.and Saharan areas. Also, it met the waterneeds of the industrial and tourism sectors, * Developed irrigated surface perimeterswhile respecting the ecosystem's limited using a water-saving policy to increasecapacities and helping solve future water agricultural production and make waterissues. Specifically, the reforms: routinely available.

* Promoted the economic valorization of * Reduced the negative effects of droughtwater resources and combated all types of (a practical guide about managingwaste, by applying audit controls and fi- drought was designed in 1999, based onnancial incentives. the country's experience as well an on

that of countries with similar conditions).* Developed a water economy program for

irrigation and drinking water by enhanc- * Ensured the equal distribution of watering the use of water-saving technologies resources by equipping all regions and al-and creating a pricing system that penal- lowing citizens to profit from these re-ized water waste. sources. At present, 2,000 elected

collective interest associations (WUAs),* Developed conventional and non- spread across the country, direct the man-

conventional water resources (80% of the agement and use of irrigation and ruralwastewater will provide 0.4 billion cubic water infrastructure.meters of recycled water by 2030). To-

200


Lessons Learned Following the opening talks, participantsquestioned speakers about capacity-building

Lessons from the Tunisian experience in- efforts, good governance and the role of theclude the need for: World Bank in supporting these efforts, as

well as experiences from regional coopera-1. Diversification--moving from solely tra- tion programs for water security, such as the

ditional to non-conventional water Nile Basin Initiative.sources such as wastewater, and mobiliz-ing water resources by investing in a 3.3 The Call for Actioncombination of small, average-sized andbig hydraulic structures, i.e. building Important progress has been made in intro-small and large dams. ducing water policy reforms in the region.

However, Mr. Ismail Serageldin, Director2. Adopting a new, progressive pricing General, Library of Alexandria and former

Structure. Chairman of Global Water Partnership,noted that serious challenges remain. Water

3. Contingency planning--preparing for is key for reducing poverty and promotingdroughts (including artificially recharg- economic growth, but where it is lacking,ing aquifers to store surplus surface wa- economic growth is restricted and social ten-ter underground). sions increase. Thus, all partners must con-

tinue efforts to insure that water issues bring4. Advanced technology and research-- people together rather than become a cause

emphasizing technology transfer and re- of war. In the same vein, water can be a vec-sults of in-depth studies, while using ex- tor for peace and security rather than aisting techniques adapted to semi-arid source of conflict and instability.conditions. For example, a technologywatch was created to identify and adapt The regional statement for the Middle Eastworldwide technological and scientific and Mediterranean day called for immediateachievements, especially with respect to action by governments, water users andtreated wastewater, the recharge of donors, through strong partnerships (seegroundwater, desalination of brackish Box 3). The fragmented, supply-orientedwater, and management of droughts, so approach to water development must changeas to reduce the damaging effects of wa- to one that integrates water management,ter shortages. stressing partnerships between water

suppliers and users, and cooperation5. Participation and awareness raising-- between donors and institutions active in the

informing users and other stakeholders region.about educational programs, etc.

*21

Four Pillars in Water Policy Reforms

able manner. Licenses for drilling ground- regulations, the lack of clear laws that definewater have been issued, charges applied and water rights, and traditional perceptions ofwells metered. In some cases, these actions water rights. Shared aquifers are also beinghave had positive results, and the amount of severely depleted due to over-exploitation.groundwater withdrawn has declined. How- Nevertheless, they can be successfully man-ever, issues remain such as governments' aged if countries cooperate fully and workcapacity to monitor and enforce the new together.

Overview and issues relating to groundwater management, presented by Prof. Dr. Ram6n Llamas,Professor Emeritus, Complutense University, Madrid

The driving force for developing groundwater in the Mediterranean is farming. The rapid expansion ofgroundwater use has been facilitated by technical developments and reduced drilling costs, which, at pre-sent, are often low relative to the value of the crops grown. As a result of such expansion, deterioratedwater quality may be an even more important issue than water table depletion.

The issue of groundwater mining and its effect on sustainability is critical, and concerns with respect tovalues and ethical issues may differ between rich and poor countries. Further, the value of groundwaterchanges regularly. Typically, geologists determine its value based on the relation between demand andsupply; however, it might not be easy to estimate groundwater recharge or define the concept of demand.

The institutional issues surrounding groundwater differ from those of surface water because of the nu-merous stakeholders, and for this reason, decision makers need to invest in creating inventories ofgroundwater resources and their use. Social, economic, ecological, legal and institutional aspects are criti-cal. In this context, efficient institutions could rely on the water users themselves, such as the Water Tri-bunal of Valencia, created 800 years ago.

Managing water rights in the Mediterranean, presented by Ms. Josefina NMaestu, Advisor to theMinistry of Environment, Spain

There are five types of groundwater property rights systems, based on ownership of the resource. Theseinclude (1) prior appropriation, 2) absolute ownership, (3) reasonable use, (4) proportional water use and(5) public allocation.

Under the prior appropriation system, those with rights may use the resource, but do not own it. Ground-water rights are conditioned upon actual consumptive use. This implies that unused rights are returned tothe public. Under absolute ownership, landowners own the groundwater below their land, and are free touse, sell or transfer it, without having to consider the needs of the other users. Under reasonable use (anAmerican variation of the absolute ownership system, based on English common law), property holdersown the resource and may use groundwater subject only to a reasonable use constraint; this is determinedby a country's laws and statutes, and may vary from one country to another, and from one location to an-other in a single country. Under proportional use, surpluses and deficits are a1ocated proportionallyamong all users: For example, if groundwater availability is reduced 5% below normal levels, each userwill receive 5% less water. Under public allocation, governments distribute groundwater rights to thosewho apply for them.

24v


If the rights are privately owned such as in the above systems 2 and 3, there is little government interfer-ence and few transaction costs, such as in Arizona and Texas (US). However, if groundwater is publiclyowned, greater administrative controls apply, such as in New Mexico (US), Spain, Tunisia and Jordan.

In groundwater management, approaches can be top-down, bottom-up or mixed. In a top-down approach,where groundwater is publicly owned, such as in Jordan, Arizona and New Mexico, a central authoritydetermines water allocation and enforces permits, and public participation is limited. Conversely, in a bot-tom-up system, where groundwater is privately owned, as in Texas, the private sector is more powerfuland government can only guide the management of groundwater at the macro-policy level; in such cases,groundwater user associations and irrigation districts design policies at the micro-level.

Groundwater in the ME/MED region is not regulated to any great extent. For example, the Spanish gov-ernment adopted a mixed groundwater management system, and in this way, the central authority couldcontrol all wells; participants have operational roles, but they must coordinate their activities with theRiver Basin Authorities. An important issue is the Authorities' capacity to enforce regulations and theperceptions of problems among different users. And, as users may view aquifer depletion levels differ-ently, cooperation with River Basin Authorities is vital. In turn, River Basin Authorities need to supportusers to generate knowledge and management systems. Based on the Spanish and Jordanian experiences,groundwater improvements take many years, making government assistance essential.

Groundwater management in Yemen, presented by Mr. Jamal Abdo, Chairman, National WaterResources Authority

In Yemen, most of the population live in rural areas and water is very scarce: Annual average rainfall is200 mm and per capita availability for all uses is just 135m3. Wells are numerous (over 50,000) and thecountry's water resources are fully exploited. Since the 1980s, groundwater depletion has been a criticalissue. Today, given Yemen's high population growth and the fact that 50% of the population live in 8%of the area (in the west), groundwater has been over-abstracted and the water table has dropped by 4-5meters a year. Still, the key problem is that most people still do not have access to safe water.

Water is now the Government's top priority, with the major challenges being (1) reversing existing wateruse trends to achieve sustainable use, (2) maximizing social and economic benefits from available re-sources and (3) providing safe and sufficient water to larger segments of society. To meet these goals, thecountry devised a national strategy and water policy, as well as policies for managing irrigation and set-ting quality standards. The legal and financial systems for managing groundwater, introduced in 1996, arebased on a plan to increase water use to 60-80 liters/year/capita compared to the current 40 liters. In 1997,under the National Water Resources Authority (NWRA), seven local authorities were integrated to bettercoordinate decision-making. Further, the Government decentralized urban and rural water supply agen-cies and created local authorities-to bring management closer to the local level.

An important issue is the increasing cost of water (case studies indicate that it will be $7/i 3), which raisesquestions about users' willingness and ability to pay. Another is the implementation and enforcement ofpolicies, plans and regulations. For example, groundwater use rights are still unclear, which adds to im-plementation problems.

*25


Groundwater management in Jordan, presented by Mr. Edward Qunqar, Director, Ministry ofWater and Irrigation, Jordan

The water crisis in Jordan is due to limited renewable water resources, high population growth, a lack ofintegrated planning and management, and the increased cost of expanding the supply. The most importantproblems are excessive groundwater pumping, aquifer depletion and decreased groundwater levels, dete-riorated groundwater quality, misallocated water use and an unclear agenda for managing demand.

To remedy these problems, Jordan developed a water strategy in 1977 and subsequent policies ongroundwater, irrigation, and wastewater management. To increase resource exploration, monitoring anddevelopment, Jordan is upgrading its monitoring network, allocating priority to municipal and industrialpurposes, using non-conventional water to relieve pumping for fresh water and conducting artificialgroundwater recharge. To protect and sustain the resources, the country has banned the drilling of wells,as well as groundwater abstractions without licenses and permits; it has also installed protection zonesand upgraded water quality laboratories. Further, it is emphasizing the role of the private sector in manag-ing water and wastewater services, restructuring water agencies, conducting public awareness campaigns,taking legal steps against illegal drilling, and creating a Planning and Monitoring Unit to oversee the per-formance of private sector operators. Finally, it is using financial and economic mechanisms to controlexploitation such as tax deductions on water saving devices and fees for over-pumping. Also, it is intro-ducing commercially-based financial systems in the water sector.

To date, some accomplishments include (1) increased use of non-conventional water, (2) a reduced num-ber of Ministry staff, (3) modified water sector laws so as to allow for private sector participation andcommercially-based management contracts, training programs and public awareness campaigns, an im-proved groundwater monitoring network, a law to control and regulate abstractions, and a 12% increase inwastewater tariffs in Greater Amman and Zarqa governorates.

However, improving the monitoring network is an ongoing process and the Government's future strate-gies will focus on achieving greater water efficiency, enhancing stakeholder participation and developingmore public awareness campaigns.

Managing the shared Nubian Sandstone aquifer, presented by Dr. Khaled Abu-Zeid, CEDARE.*

The vast Nubian Aquifer, shared by Egypt, Libya, Chad and Sudan, is non-renewable. Population growthand intense drilling activity have recently caused the water table to decline, threatening its long-term sus-tainability. Thus, the four countries agreed to a plan for sustainable use that will (1) create an enablingenvironment for devising a regional Nubian aquifer development strategy and then implementing it, (2)build the capacity of national institutions and professionals, (3) and integrate social and economic factorsfor a holistic vision of the aquifer's development.

Under the new regimen, the countries agreed to monitor and record the aquifer's water table. To this end,they developed a regional information system (including a GIS) and conducted environmental assess-ments of current and future practices of groundwater extraction. Based on the information, models weredeveloped for future water use and criteria. They also agreed that they must study the socio-economic

2644


aspects related to the aquifer so as to understand the culture of local communities and test the suitabilityof development plans, thereby avoiding resistance from the populations. In addition, they will complete aframework for implementing the strategy, pursue a dialogue to establish legislative mechanisms, create adetailed aquifer- monitoring system using isotopes, remote sensing and numerical models, and produce aregular aquifer status report.

*CEDARE is the executive agency responsible for developing the strategy and coordinating the coun-tries' efforts.

Managing a shared aquifer in North Western Sahara, presented by Mr. Rachid Taibi, OSS

The North Westem Sahara Aquifer spreads across Algeria, Tunisia and Libya. As a result of over-abstraction, its water table has rapidly declined, which has led to high salinity levels. Another major prob-lem is access to water because the aquifer is surrounded by sand dunes. To overcome these problems, theSahara and Sahel Observatory (OSS) established a coordination unit among the three countries to syn-chronize joint efforts to best manage the shared resource. OSS developed a model that indicates waterscarcity will not abate if over-abstraction is not reduced. The unit identified actions to minimize risks,such as decreasing interference among the three countries sharing the aquifer and restricting the quantityof water each can withdraw. The countries have also identified geographic areas where extraction is per-mitted or restricted, based on the consequences to each. A basic plan that aims to prevent interferenceamong the three will be established in 2003.

4.1.3 Discussion themes ogy saves water, it might be better to reducethe non-beneficial evaporation in transporta-

Information availability and reliability. tion systems and avoid vertical expansion atData must be reliable and transparent if the basin level.groundwater is to be managed sustainably.Although information about illegal wells is Conditions for controlling groundwater.often poor, the Internet can be a useful tool Jordan has shown that water laws must existfor improving data quality. and be enforced if the level of groundwater

abstraction is to be reduced. However,User participation in managing groundwa- drought can create strong reactions againstter. The participation of water users is criti- controls.cal to improving the management of theresource. Also, governments can play a sig- Implementing new water regulations maynificant role by establishing the proper legal take a long time. Thus, awareness-raisingand institutional framework. For example, campaigns, information sharing and confi-Jordan chose a top-down approach, but dence-building measures among all partiesWUAs work with the government on water are important if participatory groundwaterprojects. management schemes are to succeed and

groundwater abstraction is to be reduced.Reducing net water abstraction or verticalexpansion at the basin level. Water conser- Management of non-renewable groundwa-vation is a complex issue in groundwater ter resources. Coordination mechanismsuse. Although improving irrigation technol- among countries as well as restrictive meas-

*27


ures are needed to ensure the sustainable 1 meter a year. Other constraints includemanagement of non-renewable shared budgetary and investment limits.groundwater resources.

In addition, Egypt and Libya established a

For example, with respect to the Nubian aq- joint authority in 1992 to study the Nubian

uifer, countries agreed not to withdraw more aquifer. Chad and Sudan have recentlythan 5 billion m3 of water a year. This joined and the four countries agreed to

amount was calculated by simulating new monitor the aquifer and share informationeconomic activities with the constraint of on specific wells.not lowering the water table by more than

4.1.4. Issues, actions and recommendations

Issues* Institutional aspects of groundwater management are important.

* User participation is crucial for successfully managing groundwater. Governments should provideproper incentives to encourage stakeholder participation.

* Education and public awareness about groundwater abstraction is vital.

* Securing net water savings from irrigation loss is critical.

* More efforts should be made to collect reliable data and information on groundwater resources.

Actions* Transfer new technologies and strengthen the monitoring network.

* Launch public awareness campaigns and training programs for managing groundwater.

* Update laws, policies, regulations and controls.

* Enhance stakeholder participation.

* Expand the role of the private sector.

* Design and implement a framework for water rights and inter-sectoral water allocation.

* Improve water use efficiency in all sectors, particularly in irrigation.

* Consider the social, economic, ecological, legal and institutional aspects of groundwater use aswell as hydro-geological issues.

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Recommendations* The institutional and technical aspects of groundwater management must be stressed.

* Reinforce regional support from countries and international organizations, which is critical to theexchange of experience and knowledge.

* Countries and partners must discuss incentives and mechanisms for regional water efforts.

4.2. Water, Agricultural Policies and Food Security

4.2.1 Introduction rity rather than food self-sufficiency by find-ing ways to export high-value crops and

In an effort to address the issue of growing import crops with high water content. Thisfood demand and limited water supplies, this will require agricultural policies that aresession examined several key topics such as more comprehensive and consider issues(a) the relationship between water scarcity such as agricultural infrastructure, scientificand food production; (b) food security research, innovations, rural poverty andwithin the context of trade liberalization; links to national and regional economies.and (c) the impact of alternative water poli-cies and investments on water supply and 4.2.2 Summary of presentationsdemand.

Five presentations were made, focusing onMost of the countries began their economic improving the productivity of water, reduc-reforms in the early 1990s, which helped ing water shortages, expanding the supplyaccelerate agricultural growth. However, and protecting the eco-system.many problems still exist, such as high un-employment, rural poverty and low agricul- With respect to productivity, speakers notedtural productivity, which require even bolder that it could easily be doubled by applyingand deeper reforms and actions over the techniques such as supplemental or deficitlong-term. irrigation, water harvesting and biotechnol-

ogy. Besides new technologies and policies,This session dealt with water resources, food it also requires a change in land use andsecurity and agricultural policy reforms and cropping systems, including cultural prac-their linkages. Since the food crisis of 1974, tices and new types of seeds, along withefforts have been made to raise food self- timely socio-economic interventions.sufficiency, i.e. to secure enough food forthe entire population, in a stable and safe To cope with water shortages and in the con-manner, either from local production, im- text of ongoing World Trade Organizationports or both. However, given the scarcity (WTO) negotiations for global agriculturalof water in the region, water rather than land reforms, the region is already importingproductivity has to be maximized. Thus, "virtual" water in international trade, al-countries should aim to achieve food secu- though on a small-scale (virtual water is that

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which is embedded in food or other prod- Prospects for water availability and food se-ucts, used in their production). Trade in vir- curity until 2025 were also assessed throughtual water allows water-scarce countries to the IMPACT-WATER model developed byimport products that consume large quanti- IFPRI (International Food Policy Researchties of water and export those that consume Institute) it indicates that while private in-little-thus making water available for other vestments in groundwater will assume in-purposes. But agricultural trade liberaliza- creasing importance, greater investmentstion and marketing reforms will also be must also be made in household water.needed to allow farmers to shift, in a signifi-cant manner, to more efficient cropping pat- Finally, the issue of protecting eco-systemsterns over time; this would include shifts to in wetlands areas was addressed. A presen-fruits, vegetables, horticulture and other arid tation on the MedWet program (whichcrops (olives, palm) - those that are less wa- promotes integrated water resource man-ter intensive and more suited to the agro- agement at a catchment basin/watershedclimate of the region. level while mitigating irrigation/agriculture

impacts on natural ecosystems) observedThe consequences of trade-related job losses that most countries in the region do not havewould primarily affect the more vulnerable integrated policies on agricultural develop-segments of the rural population, including ment, water management and the environ-small field crop producers, subsistence ment.farmers in rainfed areas, and poor livestockherders. Thus, along with the types of meas- Some of the actions recommended includeures noted above, countries must also target the need for more research on crop breedinginvestments in social and economic infra- to increase water productivity, on waterstructure - health, education and nutrition - management techniques adapted to the re-to benefit the poor. The case of Morocco gion and on assessing the effects of liberal-illustrates this point, where the government izing agricultural trade, especially on theis investing both in agricultural productivity poor and women.and quality of life improvements in ruralareas.

Keynote speech: Water and Food in MED/ME in 2025, presented by Dr. Mark Rosegrant, SeniorResearch Fellow, IFPRI

Since the MNA is arid and often experiences drought, the high economic and environmental costs of de-veloping new water resources limit attempts to increase supply. Thus, developing new supplies alone willnot meet the growing demand. Instead, countries will need to reform policies and management strategies,and invest in ways to make existing systems more efficient. In assessing the future of water availabilityand food security until 2025, the presentation focused on (a) water availability and demand, (b) the rela-tionship between water scarcity, food production/ security; (c) the contribution of irrigated and rainfedagriculture to future food production; and (d) the impact of alternative water policies, management re-forms, including water demand and investments in water supply and food production. An integratedglobal water and food modeling framework, IMPACT-WATER, was applied to simulate the complex re-

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lationships among water availability and demand, food supply and demand, international food prices, andtrade at regional and global levels over a 30-year period. Results indicated that investment in groundwaterwill be increasingly important, as well as investment in household water supply, reform of water policyand using water more efficiently. Also, crop productivity must be increased through greater investmentsin agricultural research that emphasizes crop breeding for rainfed agriculture, and in rural infrastructureso as to improve access to markets, credit and inputs.

Agriculture, water and trade presented by Ms. Shobha Shetty, Senior Economist, The World Bank

The region as a whole has a deficit in food production and must increase trade to ensure its food security.Due to water scarcity and population growth (2.5% in the last decade), the region is a large net food im-porter to meet about 20% of its total needs. Some issues related to improving agricultural trade in MNA---in the context of the ongoing WTO negotiations for global agricultural reforms and the potential for re-vitalizing trade arrangements with Europe--involve water availability and use patterns. Based on currentpatterns, MNA is already a large net importer of water. Through its still limited exports of less water-intensive fruits and vegetables, and growing imports of more water-hungry grains, livestock and dairy, theregion is already dealing with water shortages by importing "virtual" water in international trade. Theconsequences of trade-related job losses are serious, since the benefits of freer trade go primarily to bet-ter-off farmers in irrigated areas and urban consumers, while large losses are felt by the more vulnerableamong the rural population, such as small field crop producers, subsistence farmers in rainfed areas andpoor livestock herders. Since the rural workers threatened by displacement (due to the liberalized im-ports) are disproportionately women, the gender issue must also be addressed. Packaging the transitionprocess to accommodate such constraints and designing safety nets could ensure that trade reform in agri-culture is a politically viable alternative. Agricultural trade liberalization needs to be viewed as a mediumto long-term process, with adequate consideration of social and political consequences, and careful plan-ning of sequencing, adaptation, financing and implementation of actions.

Water and agricultural productivity, presented by Dr. Theib Oweis, Senior Irrigation and WaterManagement Scientist, ICARDA

The most viable option to cope with water scarcity is to substantially increase agricultural water produc-tivity. At present, water, not land, is the limiting factor for improving agricultural production. Maximizingwater productivity, not yield per unit of land, is thus a better strategy for on-farm water management.Changing this focus will require not only new technologies and policies to manage water but also achange in land use and cropping systems. Strategic research on field crops, such as cereals and legumes,shows that water productivity can be substantially improved and sustained only through the integratedmanagement of farm resources. Water use-efficient on-farm techniques, along with improved irrigationmanagement options, better crop selection and appropriate cultural practices, improved genetic make-up,and timely socioeconomic interventions, can help achieve this objective. Wheat productivity, which cur-rently averages 0.5 kg/ m3, could easily be doubled using techniques like supplemental and/or deficit irri-gation, water harvesting, and biotechnology. Conventional water management guidelines designed tomaximize yield per unit area need to be revised to maximize water productivity.

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Vulnerability and poverty in Morocco, presented by Mr. Ahmed Oulhaj, Advisor, Ministry of Agri-culture and Rural Development, Morocco.

Rural poverty in Morocco is high. Water is the primary resource that improves agricultural production,provides food security and contributes to overall rural development. However, the availability of watervaries greatly--spatially, temporally and quality-wise. Three of the country's eight major river basins--Tensiff, Sousse-Massa, and Sud-Atlas-experience deficit conditions and this problem is expected toworsen over the next decade, adding at least another two to the list. The Government recognized the needto address the water, food security and poverty issues, simultaneously investing in (a) improving agricul-tural productivity in an environmentally sustainable manner and (b) improving the quality of life in ruralareas through improved social and physical infrastructure. Through its innovative integrated and partici-patory approach to rural development, it also aims to increase stakeholder participation and enhance thesustainability of its investments.

Sustainable use of water resources for agricultural development in wetland areas, presented by Mr.Spyros Kouvelis, Coordinator, Med-Wet Program, GWP-Med.

Sometimes, when discussing the management of water resources, the issue of maintaining healthy ecosys-tems is overlooked. For example, natural releases of water that supply the environment's needs should beadequately maintained. MedWet is a long-term collaborative effort among 25 governments, the Palestin-ian Authority, UNEP, European Commission, Barcelona-Bern-Ramsar Conventions, eight internationalNGOs and four Wetland Centers to conserve Mediterranean wetlands. Agriculture affects the sustainabledevelopment of wetland areas and their catchment basins. Such impacts sorely need to be assessed, but nosystematic approach exists to collect, analyze and evaluate reliable data and knowledge. Further, in mostof the region, few integrated policies exist on agricultural development, water management (irrigated orrainfed agriculture and groundwater use) and the environment; also, there is little awareness and access tospecialized information and support systems for water users and stakeholders (farmers, irrigators, pro-tected area managers). MedWet's goals include promoting integrated water resource management at acatchment basin/watershed level while mitigating irrigation/agricultural impacts on natural ecosystems.Also, MedWet aim to develop a methodology and tools to assess needs and address problems, build insti-tutional capacity and increase public awareness. This will be accomplished through partnering efforts; tothis end, the North African Wetlands Network and the Mediterranean Irrigators Association are activecollaborators with GWP-Med.

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4.2.3 Discussion themes grown, and costs of establishing and main-taining treatment plants. However, it will

Influence of climate change on MNA ag- become an increasingly important source ofriculture. The current IFPRI model does not water for irrigation around major cities--consider the influence of climate change be- thereby freeing up valuable freshwater forcause projections are made only until 2025. other high-value uses.However, IFPRI plans to work closely withthe Inter-Governmental Panel on Climate Access to markets. Debate arose overChange (IPCC) to address such issues in an whether restrictions exist for MNA coun-expanded version of the current model. tries' exports to EU markets. Some argued

that MNA countries are unable to gain ac-Importance of using treated wastewater cess because their products do not adhere toand desalination. The consensus was that EU phyto-sanitary guidelines; also, that nodespite recent advances in desalination tech- transition period exists between the removalnology, which have halved costs from more of customs duties on the one hand and thethan $1/m3 over 10 years ago to about imposition of phyto-sanitary restrictions on$0.40-$0.50/m3 today, it is still neither fi- the other, thus restricting MNA exports. Innancially nor technically feasible to consider addition, internally, MNA countries haveas an added source of water for agriculture. had serious structural and policy constraintsIt is a highly capital-intensive technology; in in the context of standards, price formationmost countries where desalination has been and information, storage, transport, etc.,applied, the end-users are domestic and in- which have been exacerbated by bureau-dustrial. Also, use of treated wastewater, cratic interventions and inefficient publicwhile gradually expanded in a controlled enterprises. Thus, internal reforms in marketmanner in Tunisia, still has problems related organization and marketing are critical toto institutional aspects, opportunity costs of enhance access to EU markets.land, legal restrictions on crops that can be

4.2.4 Issues and recommendations

Issues* Increasing water productivity is key to raising food production.

* Use of treated wastewater and desalination are increasingly attractive options to augment supply.

* Agricultural trade and market reforms will become ever more important in the shift to more effi-cient cropping patterns that are more suited to the agro-climatic factors of the region and less wa-ter-intensive.

. Liberalizing agricultural trade will entail significant transition costs, particularly for the poor.

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Recommendations* More research is needed on crop breeding and improved water management techniques, adapted

to the region.

* Water subsidies must be targeted to the poor.

* Rural investment in social and economic infrastructure - health, education, and nutrition - is es-sential.

* Reforms in marketing and market organization should be pursued to increase exports to devel-oped countries.

* A proper assessment is needed of the costs of agricultural trade liberalization, especially on thepoor.

4.3. Institutional Reforms: Decentralization and Public-Private Partnerships

4.3.1 Introduction PPPs, which included lessons from a seriesof Water Demand Management forums or-

The fiscal burden of the state and the need to ganized by IDRC and held in a few MNAmodernize water services in the face of se- countries in 2002-2003. Case studies fromvere competition for the resource are stimu- Jordan and Morocco were presented.lating MNA governments to look forinstitutional and financing alternatives. Min- Talks focused on the need for privateistries of water are beginning to consider sources of funding, given the huge financialprivate sector options to replace govern- requirements when developing and manag-ment-managed water entities and to improve ing water resources. However, substantialpublic sector capacity in essential functions. effort will be needed to achieve this, becausePrivate sector participation (PSP) has been until now, PPPs have been limited to waterseen as a way to improve the sustainability management rather than financing. Further,and efficiency of water services; a few cases most of the experiences have been drawnof PSP already exist in the MNA region from urban water supply and sanitation(Jordan and the West Bank-Gaza). rather than management. At the same time,

interest in PPP for irrigation is growing,However, when ministries examine PSP op- with a pilot project underway in Moroccotions, issues arise with respect to the (a) in- (see box below).stitutions and laws needed to attract theprivate sector, (b) performance and evalua- Several recommendations emerged from thetion of the companies and (c) social conse- presentations/discussions. These were (a)quences of privatization on the poor. Given political support is vital when countriesthese questions, it is more relevant to con- launch institutional reforms, (b) MNA coun-sider public-private partnerships (PPPs) and tries can draw upon Asia's decentralizationfocus on issues of decentralization, good experiences, (c) reforms must be introducedgovernance and user participation. immediately since institutional change is a

long process and (d) lack of coordination4.3.2 Summary of the sessions among agencies as well as high population

growth and low public awareness presentGlobal, regional and country-based presen- obstacles to decentralization.tations were made on decentralization and

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In addition, laws need to be passed and/or water and cost savings, service improve-strengthened to achieve decentralization and ments, and the role of women are also essen-PPP. For the former, governments should tial. As for PPP, capacity must be built toincrease pilot projects that include signifi- monitor the performance of contracts, un-cant user participation, at the same time as derstand the options for third party guaran-they acknowledge the constraints to mobiliz- tees to cover risks, and establish cost-ing it. Efforts to monitor performance on effective mechanisms to resolve disputes

Water demand management, presented by Dr. Ellysar Baroudy, IDRC

Water scarcity, poor quality services and unsustainable water management practices are the driving forcesfor the International Development Research Centre's (IDRC) activity in MNA. To meet these challenges,the IDRC promotes various strategies through the Water Demand Management (WDM) Forum. Its short-term objective is to help decision makers realize that WDM is a viable course through which to managesupply; the long-term objective is to devise policies and programs to support WDM practices.

Four WDM sessions were held on wastewater, PPP, decentralization and water valuation. Countries viewthe use of wastewater as a valuable option if health and other socio-economic considerations are re-spected. However, in many cases, wastewater is used without being treated. PPP was examined as it oc-curs in irrigation; because it is relatively new in the region, lessons and guidelines must be continuallyexchanged. With decentralization, there is still little monitoring and evaluation. While responsibility andownership of water resources management is now greater in the region, decision makers and stakeholdersneed to be more involved. Finally, a few countries in the region have adopted the water valuation princi-ple to varying degrees, adapting it through an evolutionary process which may be of interest to othercountries that are still exploring the valuation option.

Integrated water management, presented by Mr. Abdelkader Hamdane, Tunisia

Institutions in MNA are characterized by a top-down decision making approach, little awareness of waterrights, government-monopolized water management, weak regulations, and slow movement towards re-form. With respect to the last issue, political willingness is vital, since new roles need to be assigned andregulations introduced.

When creating an integrated water resources strategy, the following should be considered:

)Transparency: The government needs to clarify the allocation decisions and environmental concerns;good governance of water services is critical.

-Decentralization: Policies and plans must be set at the national and regional levels.

kLegislation: Coherent and unified laws should be passed that determine water rights; regulations need toinclude water quality standards to protect human health.

WEconomic instruments: Economic and financial incentives should be clearly identified.

The two types of PPP in water services include (a) institutional or regulatory governance monitored by apublic body, where the operator has little autonomy and (b) a contract mechanism based on an agreement

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between the public authority and private sector, where few institutional arrangements are needed but vari-ous regulations must exist. The institutions must be economically, ecologically and environmentally effi-cient.

When implementing institutional reforms it is important to (a) increase public awareness, (b) obtain effec-tive user participation (particularly for daily maintenance) and (c) provide regular training to all stake-holders based on their specific needs. The performance of the new institutions must be monitored, so as toachieve further changes and re-evaluate actions. For the entire effort, political willingness is vital.

Comparative experiences in managing decentralization and participatory irrigation in MNA, pre-sented by Mr. Qahtan Abdul-Malik, Yemen.

This presentation was based on the Water Demand Management forum held in Egypt in 2003, whose par-ticipants concluded that little information and few mechanisms exist with respect to monitoring andevaluating decentralization programs. However, they noted considerable improvements in water man-agement in MNA at the farm level.

Farmers' participation in the management of irrigation can take several forms, including water usergroups, water user boards, water user associations and agricultural federations; also, the level of participa-tion is defined according to the size and type of the project. The participation of farmers can have posi-tive impacts at the technical, economic, institutional, social and legal levels. For example, it has increasedefficiency in irrigation projects, reduced the amount of energy consumed, increased the areas served bywater users and helped prevent water pollution. In addition, it has led to a transfer and reduction of O&Mcosts from the govemment to water users. In terms of social impacts, farmers' participation contributed toraising their sense of responsibility and reliability.

An important lesson has been with respect to having an appropriate framework for adopting decentralizedmanagement; also, that incentives are needed to mobilize commitment and resources both from the gov-ernment and users. This would help optimize the irrigation systems and increase the productivity of waterwhere irrigation schemes need to be improved.

However, a few factors limit the full participation of farmers in managing irrigation resources, including(a) poverty and over-reliance on govemments, (b) lack of infrastructure, community resources and capac-ity building, (c) illiteracy and little sharing of knowledge among water-related projects, (d) lack of under-standing of participation and gender issues and (e) inefficient water use.

Decentralization in Asia and links with ME/MED experiences/strategies, presented by Dr. Tsugi-hiro Watanabe, Research Institute for Humanity and Nature, Ministry of Education, Culture,Sports, Science and Technology, Japan

Lessons were offered from the Asian experience on managing decentralized irrigation and highlighted therole of district level organizations.

In Japan, irrigated paddy areas are institutionally divided into land improvement districts (LID); thesehave hierarchical structures, with farmers' water users' associations (WUAs) at the bottom tier, based onrural communities or traditional villages. The LIDs are responsible for constructing and rehabilitatingsmall-scale facilities and allocating the distribution of water among users to achieve a stable water supply

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and more efficient water use. They are also responsible for O&M of irrigation facilities whereas nationalor local governments are in charge of constructing them and managing large-scale projects such as reser-voirs or diversion works. In O&M, LIDs control the structures and canals above the tertiary level, whilefarmers' associations/groups and individuals operate and maintain all facilities at the tertiary and on-farmlevels.

The WUAs and LIDs succeed because of their democratic organizational structure and decision-makingprocess: Individual farmers elect representatives to an assembly of representatives. Farmers have a senseof ownership in irrigation facilities and of belonging to the LIDs. They also are willing to share the O&Mcosts and enjoy good relationships with government organizations. All LIDs have a federation at the localand national levels.

In China, the government organization responsible for O&M of irrigation schemes has been restructuredas an independent project agency. Farmers' associations operate and maintain tertiary-level facilities andthe farmers receive water by paying a fee to the agency. However, the facility's ownership and responsi-bility for O&M are not clearly transferred. The relation of the project agency with the WUAs has becomea top-down system, resulting in inappropriate management (for example, the head of the WUA is oftenappointed by local government, thus not representing the farmers' interests). Still, the situation is chang-ing rapidly.

Lessons from these experiences are that (a) tertiary-level associations are vital to the O&M of irrigationfacilities, (b) district-level non-governmental organizations (NGOs) whose task is to manage irrigationsystems can replace governmental organizations, and (c) cooperation from the NGOs must be well organ-ized, if their performance is to be secured and improved.

When establishing strategies, these issues must be considered:

(a) Which level of organization should be legally authorized?

(b) Which should be established first-the district or tertiary level association?

(c) To what extent do farmers have a sense of ownership?

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Governance in the Mediterranean countries, presented by Mr. Vangelis Constantianos ExecutiveSecretary GWP-Med.

In 2001, GWP-Med started a series of dialogues on the subject of effective water governance, in order topromote communication among stakeholders, such as politicians, MPs, local authorities, media represen-tatives and academicians in the Mediterranean countries. Some of areas discussed were (a) policy andinstitutional reforms, (b) laws and their enforcement, (c) participatory processes and empowering civilsociety and (d) financial instruments and incentives. The problems raised by the dialogues were the frag-mented institutions, inappropriate laws, lack of financial resources and limited accountability and trans-parency.

While decentralization models differ among regions, similar concerns are collaboration and accountabilityfrom both providers and users. Awareness encourages participation, ownership, responsibility, and ofcourse, accountability.

Decentralization is not just the process of municipalization, but one where local governments become ef-fective and properly harmonized within the national institutional context. However, because local gov-ernments have limited financial capacity to run services properly, it is necessary to (a) promote anintegrated approach to basin management,, (b) strengthen local frameworks, (c) develop local capacity,(d) strengthen local water user associations, (e) enhance participatory processes and (f) develop local fi-nancial instruments.

In 2003, activities will include continuing the dialogue with MPs and the media, assessing water laws inthe Mediterranean countries, beginning a dialogue in the Balkans and facilitating dialogues at the nationaland River Basin Organization (RBO) levels.

Private sector participation in managing water resources in Morroco, presented by Mr. MokhtarBzioui, Director of Research and Water Planning, Ministry of Land Use Planning, Water and Envi-ronment, Morocco

Like most Arab countries, Morocco suffers from low and irregular rainfall distribution. Rainfall has de-clined over the past years, possibly due to global climatic change, and it is difficult to predict futuretrends. Average per capita water availability is about 1,000 m3 and is expected to drop to 745 m3 by 2020.Further, water pollution caused by untreated wastewater, solid waste and fertilizers is a major problem.Also, soil erosion is causing reservoirs to fill up, diminishing their capacity to store water. Several factorsaccount for the losses and inefficiencies in the water sector, including outdated technologies, lack of pub-lic awareness, low water tariffs and limited budgets.

Pushed by the lack of financial resources and limited water resources, the Rabat-Casablanca coastal re-gion decided in 1995 to launch a PSP project. As a result, two private companies were given concessionsto provide water to the population. The 30-year greater Casablanca concession invested US$2.1 billion inwater supply and sanitation and is committed to improve distribution efficiencies by 15% in 15 years. TheRabat water supply concession invested US$1.5 billion and aims to achieve an efficiency rate of 85.5% in20 years. The companies replaced meters, detected water losses, eliminated non-metered connections,reviewed potable water tariffs and introduced sanitation tariffs (0.2 US$/m3 ). As a result, water consump-

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tion dropped by lOm m3 in Casablanca from 1998-2000. This indicates the private sector can manage wa-ter demand--a critical ability because of water scarcity and financial constraints. However, private sectorinterventions need to occur in a controlled framework in order that public services are provided at sociallyacceptable costs.

Private sector participation in managing water resources in Jordan, presented by Mr. MohammedNajjar, Ministry of Water and Irrigation, Jordan

Water scarcity is the most important natural constraint to Jordan's economic growth. The country suffersfrom limited water supplies and is among the lowest on a per capita basis. Current demand is not met,already exceeding the renewable water resources; and, the cost of developing new water resources is ris-ing rapidly. Some of factors contributing to the crisis include (a) high population growth that caused citiesto expand and increased demand, (b) limited renewable water resources with deteriorating quality, (c)inefficient water delivery services, (d) low cost recovery for irrigation services, (e) excessive groundwaterpumping and (f) competition between sectors for water.

After the Ministry of Water and Irrigation was created in 1988, the National Water Strategy and Policypapers were adopted; these contained guidelines to protect water quality and improve resource manage-ment and perfornance efficiency, especially by introducing PSP. A Planning and Management Unit wascreated to prepare PPP contracts and provide economic incentives that would make the projects attractiveto the private sector.

The first PPP transaction was the Amman Management Contract, a four-year arrangement for water andwastewater services in greater Amman. Signed in 1999, it will extend until the end of 2005. The projecthas yielded good results in terms of efficiency, finance and education. In particular, UFW was reduced,networks are better maintained, staff training was enhanced, and credibility with customers was restored.Other forms of PPP will be launched in the near future such as the As-Samra wastewater plant underBOT, the Disi BOT project, the Zara Ma'en water desalination project, the Aqaba water company, and theNorthern Governorates Management Contract.

Mobilizing financial resources and attracting investment/public-private partnerships, presented byMr. Mohammed Benblidia, President, Mediterranean Water Institute

Faced with a dramatic increase in the number of people needing safe water and sanitation in the near fu-ture, MNA countries increasingly seek ways to augment private financial resources. Three types of fund-ing sources include: (a) public funds, the largest coming from state budgets or domestic and/or foreigndevelopment loans, (b) self-financing, where individuals pay for themselves, say, with water utilities and(c) private funds, such as from industries, private concessions and other users. This latest source repre-sents the smallest portion in the region.

Public funds are no longer sufficient and have already reached their limit-the only option is to use themmore efficiently. With self-financing, the price of services can be progressively increased, which may beaccepted by users, but depends on the situation. Thus, although PPP schemes have not been fully exploredin MNA, these private sources may be the most attractive alternative.

PSP will not happen immediately, since there is much resistance to allowing private companies take overwater services. Public opinion may be against PPP in financing investments because it fears the socialconsequences of privatization on the poor. Also, the private sector may not be keen to invest in water ser-

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vices because revenues may not be attractive enough, financial risks may be substantial and the price ofservices may be subject to government control. Also, currency devaluations create other risks and, in turn,make it difficult to attract foreign investors.

Thus, the proper conditions and enabling environment need to be created to motivate national and foreignPSP to finance water investments. At the institutional level, this means strengthening the public sectorcapacity to deal with PSP. At the financial level, it means providing currency guarantees and workingclosely with international financial institutions for risk guarantees. Specific local and social conditionsmust also be considered when introducing PSP. Finally, local communities and WUAs must be encour-aged to take part in private sector schemes. For PPP arrangements to succeed, the end-user must beclosely involved at all stages.

4.3.3 Discussion themes intervention that is appropriate in order toadopt the right level and form of decentrali-

Participatory management. Cases from zation.China, Egypt, Morocco and Tunisia demon-strate that stakeholders must participate in Consumers' needs vis-ti-vis PPP. Experi-order to improve the management of water ences from around the world indicate thatresources. China has promoted privatization failures at the early stage of the privatizationreforms in irrigation to save water in arid process are due to a lack of participationareas. Particularly in tertiary level organiza- from water users. Thus, all stakeholderstions, farmers are encouraged to save water must be actively involved when PPPby purchasing it from water agencies. Al- schemes for water services are designed andthough the country has adopted a top-down introduced.approach to managing water resources,farmers are participating in irrigation PPP investors' concerns. Private entitiesschemes through WUAs and, as a result, considering whether to invest in water ser-large amounts of water have been saved. vices want their needs to be understood and

addressed. Generally, they seek some sort ofIn Morocco and Tunisia, participation of risk-sharing between public entities and pri-users in implementing and operating water vate companies in the form of guaranteesprojects, coupled with their having a share in from governments or financial institutions.the investment costs, has led to greater ac- To achieve this, a third partner could helpcess to safe water in rural areas. For exam- reduce risks and improve the guarantee con-ple, in rural Morocco, such access has ditions: For example, MIGA provides guar-dramatically increased from 14% in 1995 to antees and mediation services to foreign50% today. investors and creates legal and investment

frameworks. Also, mechanisms need to beThe progressive nature of reform. The de- created to resolve investment disputes, espe-centralization process is a political and cially when investors have complex struc-socio-economic process, one which takes tures.time to materialize. Also, the reform processis dynamic, and as such needs to incorporate Australia offers several lessons from its PPPthe local characteristics of water resources. irrigation projects. First, experts must carryIt is important to consider the type of State out broad and accurate market research to

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determine if private investment is feasible. Governments' role in setting tariffs. Be-Second, interested countries must rapidly cause tariffs are a sensitive issue in mostcreate the necessary laws and institutions to countries, governments often prefer to sub-attract potential investors. Third, customer sidise rather than increase them. To explorecontracts need to include clear rules and the issue adequately, authorities need toregulations to ensure transparency in trans- conduct studies to examine consumer con-actions and provide guarantees to minimize cerns and the social impact of new waterrisks. tariffs.

4.3.4 Issues, actions and recommendationsIssues. Institutional reform is a social project and takes a long time to design and implement.

. The rationale for decentralization is the urgent need to save water and finances. Although few exam-ples of decentralization exist in the region, countries can leam a great deal from experiences in otherparts of the world, such as in Asia.

. The increasing interest for private sector financing in MNA stems from the huge amount of financesneeded to develop/manage water resources. Recent experience with PPP has been largely with watermanagement rather than financing, and has focused on urban supply and sanitation. Today, interest isgrowing in PPP options for irrigation, and a couple of pilot projects are underway.

. PPP activities need to take account of their effect on people.

. Private investors require risk-sharing opportunities, some types of guarantees and an environmentconducive to PPP.

Actions and recommendations

. Obtain political support from MPs by clearly describing the benefits of institutional reform; also se-cure media support. Since reforms take time to develop, create a long-term perspective.

. For decentralization, support scaled-up pilot projects that include significant user participation; rec-ognize the constraints to mobilizing local participation; obtain information to monitor performance onwater and cost savings, service improvements, and the role of women.

. For PPP, build capacity to monitor the performance of contracts; learn about various options for thirdparty guarantees to cover risks; develop cost-effective mechanisms to resolve disputes.

. Develop new laws and, where necessary, reform/enforce existing laws that pertain to decentralizationand PPP.

. Develop and disseminate tools to implement water demand-management programs.

. Promote cost-effective ways to share experience with all stakeholders at the regional level; also pur-sue national-level consultations for sharing experiences.

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4.4 Non-Conventional Water Resources

4.4.1 Introduction suffer from excessive salinization ofirrigated lands.

Despite measures to conserve water, in someMNA areas, demand will outstrip supply. In recent years, the World Bank, along withThus, the possibilities for non-conventional other stakeholders, has sought to raisewater resources must be assessed. These decision makers' awareness about theinclude desalination, along with using development and management of non-wastewater and brackish water for irrigation conventional water resources. To this end, it(bio-saline agriculture). held a workshop on the use of wastewater

and conducted a regional study onDesalination measures were originally desalination.confined to the wealthiest countries, but thecost of large seawater desalination plants has 4.4.2 Summary of presentationsdropped to under US$1 per cubic meter--from US$.50-US$.90. Further, the cost of Dr. Ali Altokhais, Deputy Minister for Wa-brackish water desalination is about half that ter Affairs, Saudi Arabia, who chaired theamount. Meanwhile, the higher costs of session, and Dr. Amadou Cisse, Vice-securing new freshwater are eroding the President of the Islamic Development Bankprice difference between conventional and (IDB), keynote speaker, focused on the chal-desalination projects, while due to increased lenges imposed by water scarcity, the needdroughts, there is now a premium on reliable to manage demand and develop new sourcessources such as desalination. of supply, including non-conventional water.

Dr. Cisse noted that the IDB had invested inWith regard to wastewater, treating and the water sector over the past few years, butusing it for restricted irrigation purposes can had moved gradually away from irrigation toconserve resources and reduce pollution. water supply/sanitation projects, based onParticularly in agriculture, the use of treated the region's needs. The IDB also supportedwastewater and drainage water can release a new research center for salt-tolerant cropsfreshwater for higher-value activities and (ICBA) so as to increase crop production inreduce fertilizer consumption. The cost of saline lands.treating wastewater for irrigation isUS$0. 10-US$.50 per cubic meter, and in Both stressed that desalination should besome cases, is an attractive option vis-a-vis integrated with the management of demandother sources of supply. and supply: For example, efforts to develop

and manage non-conventional water need toFinally, biosaline agriculture has become an be linked with capacity building, traininginteresting option to countries disposing of and studies on demand-supply issues. Theunused brackish water (naturally brackish environmental effects of desalination can begroundwater and springs, or drainage water mitigated at reasonable costs and privatedisposed to the sea or salt pans) and which sector participation can be beneficial.

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A two-pronged approach to using treated For example, salinity guidelines that are un-wastewater is needed so as to address each necessarily stringent impede the use ofcountry's conditions, which, in turn, affect brackish surface and groundwater and slowthe development of consistent and realistic research on salt-tolerant crops.standards.

Trends in desalination, presented by Adel Bushnak, Bushnak Water Group, Jeddah.

Trends include the declining cost of desalination measures, its recent spread outside Gulf countries, andincreased reliance on the private sector to finance and operate desalination plants. Also, technologies ap-plied in desalination have recently become more energy-efficient.

Environmental impact assessments are needed of brine discharges from desalination facilities. Further,demand must be vigorously managed through sensible tariffs, leakage controls and increased publicawareness. Also, it is important that capacity be strengthened through research, development and training,building on existing institutions such as the Middle East Desalination Research Center (MEDRC) inOman.

Desalination in the Middle East, North Africa and Central Asia, presented by Mr. Jeroen Kool,DHV

The World Bank's ongoing regional desalination study aims to improve the understanding of recenttrends. It analyzes the role of the private sector, impact of desalination costs on different economic sectorssuch as agriculture, environmental effects, affordability and social impacts, and recent technologicaltrends and developments. Desalination stimulates water demand management, since its higher cost maytrigger conservation measures.

Use of wastewater, presented by Dr. Akissa Bahri, National Research Institute for Agricultural En-gineering, Water and Forestry, Tunisia

Most wastewater in the region is not adequately treated and is either discharged into the sea or used in anunsafe and unhealthy manner. While the amount of sewage is expected to double in the next 15 years, theplanned use of reclaimed water is still in its infancy in Arab countries and Iran. Moreover, it can only oc-cur if a number of conditions are met. These include the (a) adequate and reliable treatment of wastewa-ter, which, in turn, depends on the existence of strong and financially viable utilities, (b) existence andenforcement of quality standards for reclaimed water, (c) arrangements to recover at least the recurrentcosts of storing and transferring reclaimed water and (d) effective arrangements for inter-institutional co-ordination.

In many countries, the enforcement of crop restrictions, improvements in treatment, and awareness cam-paigns directed at farmers are the most urgent steps needed to protect public health. In countries with bet-ter track records, the restrictions should be lifted to allow (a) higher value crops to be cultivated, (b) coststo be recovered more effectively and (c) formal partnerships between utilities and WUAs to be created.

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Best practices in non-conventional water management in Cyprus, presented by Dr. ChrysostomosKambanellas, Cyprus

In Cyprus, desalination and the use of wastewater were recently introduced in the context of an integratedwater resources management approach. Until 1974, Cyprus relied exclusively on groundwater, whichcaused its resources to be over-exploited. After this, surface water was used, followed by desalination in1997, with two plants (one each in Dhekelia and Larnaca).

The plants were executed under BOOT schemes and operate throughout the year; the two have eliminatedurban water shortages, which is critical for the health of the large tourism industry. Peak summer demandis satisfied by the release of surface water from reservoirs. Desalinized water now provides 55% of theurban water supply, as opposed to 21% for groundwater. High water tariffs provide an incentive to savewater and the finances to pay private operators of the plants. Other demand management measures in-clude subsidies for using marginal quality water, such as shallow groundwater and gray water, for somehousehold needs. In addition, treated wastewater is used to irrigate landscape and agriculture.

Irrigation with saline water for sustainable agricultural production, presented by Dr. DonaldSuarez, USDA-ARS, Riverside CA, & Dr. Kauser Malik, Nuclear Institute for Agriculture and Bi-ology, Faisalabad, Pakistan

The two speakers introduced the new field of biosaline agriculture, which is defined as "the profitable andintegrated use of genetic resources and improved agricultural practices to obtain better use from salineland and saline irrigation water on a sustained basis." The new process assumes saline ecosystems to be aproductive resource. Given the substantial amount of naturally brackish groundwater, the problem ofsalinization of irrigated lands (up to 40% of irrigated land in some countries), water logging and largeamounts of saline water from rivers lost to the sea, agriculture could benefit substantially if these mar-ginal resources could be better used.

From the Nile River alone, 2-4m hectares of land could be irrigated with brackish water that is currentlybeing lost to the sea, thereby doubling the Egypt's irrigated area. Some benefits from using saline waterinclude conserving the fresh water supply, controlling regional water tables and increasing irrigated areasand total production. Measures recommended include revising overly strict salinity guidelines in irriga-tion, developing more salt-tolerant crops, improving crop rotation, lining irrigation canals with gypsumstones and increasing the use of micro-irrigation techniques. However, controls on discharging drainagewater must be enforced to ensure that it is not mixed with non-saline water.

The creation of the Intemational Center for Biosaline Agriculture (ICBA) in Dubai was a promising stepin promoting research and building capacity for this new alternative.

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4.4.3 Discussion ThemesHealth and environmental impacts of

Solar energy and desalination. Given high- treated wastewater. Use of treated wastewa-energy costs associated with desalination ter in MNA is still resisted by consumersplants, renewable solar energy is an attrac- because of its effects on health. For exam-tive option, considering its abundance in the ple, groundwater recharge with treatedregion. In addition, it involves no mechani- wastewater could cause aquifers to be con-cal or chemical processes, thus reducing taminated, and is a very sensitive issue.negative environmental impacts. However, Some participants argued that the effects ofbecause solar power is more expensive than using treated wastewater on health are stillconventional power, further research on the unknown and more studies are needed.subject is needed.

Costs associated with treating wastewaterThe search for integrated solutions. Aqui- are high (transportation, storage, level offer storage could help make better use of treatment required to reach a specific waternon-conventional sources, given substantial quality, etc.). Thus, it is important to com-seasonal fluctuations in demand. Thus, in- pare the cost effectiveness of all solutions.novations must be looked at in an integratedmanner, taking into account all water re- Biosaline agriculture. An important issue issources management practices. the technical and commercial viability of

biosaline agriculture. As with desalination, itTechnology developments in nonconven- is important to compare the use of saline wa-tional water. Membrane technology has deter with other sources of supply. Also, theveloped considerably but it is still current price for irrigation water in someexpensive. However, prices are expected to countries does not provide incentives fordecline further and this will become an in- farmers to use saline water.creasingly used technology in desalinationplants.

4.4.4 Issues, actions and recommendationsIssues

Non-conventional water resources will play an increasing role.. The cost of desalinating water has declined and it is a more reliable resource in a time of climate

change; the use of desalinated water needs to be linked with demand management and capacitybuilding.

. A two-pronged approach to the use of treated wastewater is needed. It must consider conditions ineach country as well as improved treatment methods, and then develop consistent and realistic stan-dards.

. With respect to biosaline agriculture, salinity guidelines are unnecessarily strict, and impede the fulluse of brackish surface and groundwater. Additional research is needed to develop salt-tolerantcrops.

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Recommendations

. The use of non-conventional water resources must be better integrated in national water policies.

. With respect to using wastewater, a working group with specialists from developed and developingcountries must be created to reconcile standards based on toxicological and epidemiological studies.

Actions

. Experiences in the use of non-conventional water must continue to be shared among research insti-tutes (ICBA, MEDRC and others), regional governments, networks (GWP-Med) and donors.

4.5 Issues in the Stakeholder Panel and Thematic Sessions

In the last session of the Day, rappoteurs, activity (Dr. Houria Tazi Sadeq frompanel members and the audience discussed ALMAE).the issues raised in each thematic session. ... cn .Water cannot be saved in irngation activitiesThese include the following: unless farmers change traditional practices.

New laws alone will not foster change;4.5.1.rManagingbgound watuer: Law efr rather farmers will need to be encouraged totrans-boundary issues and efficiency aotmdr ehoois(..Bha

improvements ~~~adopt modern technologies (H.E. BahramAminipouri from Iran).

Issues raised in the groundwater session in-volved the (a) institutional aspects of man- Many farmers do not have the knowledge toaging the resource, (b) capacity building and properly use fertilizers and other moder(c) international cooperation and partner- techniques, which limits their prospects toships (including the role of interna-tional increase productivity. Also, pastoralistsorganizations) to deal with trans-boundary (who cultivate crops differently than settledmatters. populations) in some countries will need to

With respect to shared groundwater re- adapt to new irrigation management sys-sources, these are not covered well in inter- tems. However, if laws change and subsidiesnational law since there is no clear are applied, particularly in low-rainfall ar-understanding about their legal status. Na- eas, this could increase agricultural produc-tional laws provide rules and regulations on tivity. Thus, special attention must be given

exploitation withi eachcountry,butnonto farmers' education and research, particu-expist atione wegitina leah t counitry buto larly for rainfed agricultural areas. (Dr. Eglalexist at the regional level to monitor such Rached from IDRC)

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4.5.2. Water, agricultural policies and may not be prepared to adopt competitivefood security; protectionism in ag- techniques due to strong traditional practicesriculture; new cultivation practices and water scarcity. The challenge is to find a

balance between traditional cultivationIssues emerging from the water, agricultural methods and sustainable development, andpolicies and food security session include (a) competitiveness and productivity (Dr.agricultural subsidies imposed by developed Youssef Nouri Co-chairman, Mediterraneancountries, which restrict market access by Information office for Environment, Culturecountries of the region and diminish their and Sustainable Development--MIO-competitiveness and (b) reconciling water ESCDE).savings in agriculture while addressing pov- It is more difficult to change attitudes thanerty and food security issues in the region, implement technical improvements. How-where 40%-60% live in rural areas.rr

ever, Egypt's Irrigation Improvement Pro-gramme (IIP), created to improve the

With respect to protectionism, it was noted physical and organizational aspects of irri-that given trade liberalization, it may be ar- gated agriculture, is an example where therogant to require developing countries to combination of technological improvementschange their agricultural practices; rather, it and awareness helped the project succeed, asmay be wiser to strengthen solidarity be- did trust between local leaders and farmers.tween developed and developing countries, The organizational aspect entailed creatingfor example, through bodies created to man- WUAs and improving cooperation betweenage water resources. Further, stakeholders the irrigation directorate and farmers. Sup-and community organizations must partici- ported by physical improvements, farmers'pate in managing the resources and making participation (of both men and women) isdecisions to achieve the goals of the Johan- leading to more reliable water services that,nesburg Summit. NGOs, which are close to in turn, are increasing crop production andpeople, could be vital in the interface be- farmer satisfaction. Also, media campaignstween the technical and human aspects (H.E. and communication strategies targeted to allMs Roselyne Bachelot-Narquin, Minister of stakeholders, including women and children,Environment, France). are a first step to changing attitudes (Dr.

Asghan Abou Gabal, Communication andWith respect to cultivation practices, sus- Rural Development Expert, Egypt).tainable agriculture is based on two pillars:competitiveness of production prices and 4.5.3 Institutional reform; successes andenvironmental-friendly agriculture, where failures of PPPresources such as soil and water can be pre- The institutional reform session raised theserved for future generations. Subsidies may issues of their timing and process, monitor-be necessary for both (Mr. Andres del issuentheizatiomin and pro motngCampo, from the Euro-Mediterranean Fed- ing decentralization measures and promotingeration of Irrigation Associations). stakeholder participation in designing and

implementing PPP.

If farmers do not shift to modern methods, Institutional reform within an integrated wa-they will not be able to compete. Also, they ter resources management approach is im-

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portant, but the process is complex-as it Although private sector involvement is im-includes irrigation, drinking water and vari- portant, public participation is equally im-ous sub-sectors. It requires a strategic ap- portant, and the informal sector has privateproach and a plan with clear objectives for sector knowledge that needs to be heeded.the middle and long term (awareness raising, (Dr. Houria Tazi Sadeq, ALMAE)regulations, laws and incentives). For ex-ample, Tunisia designed a national strategy 4.5.4 Non-conventional water resources:that extends until 2030; a chief goal is to Integrating and comparingachieve 30% water savings for consumption alternativesand increase the use of non-conventionalwater use through institutional reforms. Be- The discussion focused on what can be donecause some countries may not have pro- to promote non-conventional water re-duced long-term water strategies, or have sources within the context of integrated wa-some that are inconsistent, it is vital that ter resources management.they prepare and implement a national strat-egy for institutional reform. (Mr. Abdelaziz Non-conventional water resources need toLiman from SONEDE (National Water Dis- be compared with other alternatives such astribution Utility), Tunisia) demand management. Although significant

progress has been made in techniques andSeveral risks are attached to PPP. Lessons financing over the past 10 years, suchfrom Asian experiences involve the effec- sources are not the only solution. Rather, ativeness of subcontracting or users' willing- combination of methods and proper demandness to pay for services. For example, the management is key to addressing future wa-public's refusal to pay for water may explain ter needs. For example, the Mediterraneanwhy privatization did not succeed in Indone- Commission for Sustainable Development issia, as opposed to the Philippines-which focusing on the latter course (better man-may be due to different historical attitudes. agement of demand). It was noted that to-Thus, it is important to consider cultural and day's water crisis is similar to the oil crisishistorical aspects when implementing pro- in 1973, which caused countries to improvefound changes. (Mr. Shozo Matsuura, Man- technical performance and make huge ef-aging Director of Grant Aid Department and forts to become more energy efficient. (Mr.Former Managing Director of Africa & Lucien Chabason, Chairman, MediterraneanMiddle East Department, JICA) Action Plan, UNEP).

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5REGIONAL ACTIONS SUPPORTING REFORM

Various topics were discussed at the closing 5.1 Partnerships for Actionsession which included the (a) need for re-gional cooperation among countries and do- On the subject of regional cooperation andnors and (b) financing requirements and partnerships, proposals were offered to rein-options to advance such cooperation. De- force them with all stakeholders and donors,spite cultural differences, Mediterranean building on existing regional alliances.countries have a common history and iden- Many organizations and networks are al-tity, which could serve as the basis for ready involved in promoting sustainable wa-stronger partnerships. ter resources at various levels. These include

the Mediterranean Action Programme, Bar-The conference reviewed the achievements celona Convention, Euro-Mediterraneanof water policy reforms in order to accom- Partnership, Mediterranean Commission forplish the almost impossible task of shifting Sustainable Development, GWP-Med, otherfrom unsustainable to sustainable water regional organizations and various donors,practices and securing prosperity while solv- including the EU, IDB and World Bank.ing poverty problems and environmentaldegradation. The experiences presented The donor community reaffirmed its supportthroughout the day indicated that substantial for strengthening regional partnerships. Is-progress has been made. (Mr. Michael sues with respect to donor support were dis-Scoullos, Chairman of GWP-Med) cussed by Mr. Peter Woicke (World Bank)

and H.E. Ms. Rodoula Zissi (European Un-ion), and are excerpted below.

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Regional Actions Supporting Reform

Box 4 - World Bank support for regional partnerships

Water challenges in the region require urgent action that must include not only new national policies butstrong international support--including well-coordinated donor assistance. The Bank is anxious to coordi-nate its work with other international and bilateral organizations and the countries. A regional partnershipmust bring together regional experts and policymakers, their external supporters, and other (including pri-vate sector) sources of finance and expertise, to develop and expand regional alliances to achieve the goalof "water for growth."

The partnerships need to build on existing networks that include the Global Water Partnership Mediterra-nean Technical Advisory Committee (GWP Med-Tec), European Union (EU), International DevelopmentResearch Institute (IDRC), Islamic Development Bank (IDB), and World Bank's MNA Regional WaterInitiative, in close cooperation with governments, bilateral donors, NGOs and the private sector. Techni-cal meetings between country and donor experts are needed to develop practical proposals on prioritizedactivities and operational mechanisms.

The World Bank is ready to support both the lending operations and partnerships. Since 1960, it hascommitted more than $6 billion for over 100 water, sewerage and irrigation projects in MNA. At present,it is launching a new multi-sectoral approach to water lending through country water resources assistancestrategies in consultation with countries and donors in order to assess the multiple issues as well as assistin reforming water policies and building/managing infrastructure. It has also entered into a partnershipwith AGFUND to provide technical assistance to Gulf countries.

Box 5 - EU support for regional partnerships

The EU Water Initiative, launched in Johannesburg, introduced the World Summit on Sustainable Devel-opment agreements and action program designed to achieve water-related development goals and promotepartnerships.

The EU's new Water Framework Directive (2002) adopted an integrated approach, focusing both on qual-ity and quantity. The Directive's goal is for all water in EU countries to achieve "good status" by 2015. Inparticular, it centers on river basin management and attempts to involve all interested parties. It representsa fundamental shit of EU water legislation, making integrated river basin planning and management com-pulsory for member states, as well as for EU candidate countries.

The Mediterranean component of the EU Initiative involves four themes: (a) water supply and sanitation,particularly for the poor; (b) integrated water resources management, emphasizing the management oftrans-boundary water bodies; (c) the interaction of water, food and environmental issues, particularlywithin fragile ecosystems and (d) non-conventional water resources. Linking these components are (a)the transfer of technology, know-how, capacity building and training and (b) education. Partnerships al-ready exist and the funds needed to improve water resources in the region are available.

The current design phase of the EU Initiative is attempting to identify building blocks, which may be on-going programs, projects being prepared or implemented, or existing networks and partnerships. The ap-proach requires that the building blocks reinforce each other to achieve specific objectives. Where gaps

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occur, new building blocks will be added. Subsequent implementation will ensure local ownership andleadership of the program. The blocks that have already been designed include two initiatives: theEuro-Mediterranean Water and Poverty Facility, and the Mediterranean Education Initiative for Environ-ment and Sustainability (MEDIES). Both focus on water and waste.

Presented by H.E. Ms. Rodoula Zissi, Deputy Minister for Environment, Physical Planning and PublicWorks, representing the Greek presidency of the EU.

Panel members indicated that, rather than 5.2.1 Towards a work program forcreate new institutional structures, the prior- regional cooperation:ity should be to exchange information and Supporting policy reformstrengthen links among regional initia-tives/networks. Also, existing actions In the closing session, the panel and audi-should receive adequate long-term funding ence discussed ways to promote viable re-to ensure continuity. gional cooperation through policy reforms

and stressed the need to (a) focus on govern-Participants pointed out the difficulty of ance, (b) address training and capacitypromoting partnerships in a region when building so as to strengthen partnerships, (c)many countries are in conflict with each track progress in implementing policies andother. Thus, it is crucial to promote water as (d) ensure that knowledge and experiencesmeans of collaboration and as a vector for are shared across countries.regional cooperation and growth.

Policy reform requires a smooth transition5.2. Supporting Regional Cooperation that can be accomplished through training,

through Water Policy Reforms and education and capacity building. Partici-Donor Cooperation pants in all sessions stressed the need for

learning and many noted that reinforcingThe panel presented several options for existing networks and sharing knowledgemoving from words to actions. These in- would promote education and training, andclude: speed the reform process.

(a) Securing greater cohesion among exist- In this process, it is important to track howing regional initiatives to support policy countries are advancing towards sustainablereforms; development: Progress should not be meas-

ured only in terms of economic stability but(b) Securing finances for regional actions also by long-term sustainability. In addition

and encouraging donors to adopt a uni- to knowledge-sharing and training, the is-fied position. sues of governance and participation in

MNA should precede financial reforms.The discussions are summarized below.

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5.2.2 Donor collaboration and new tives, networks and partnerships in theapproaches to financing regional Mediterranean Region to avoid duplicationcooperation and optimize efforts.

Financing is a major issue for which donorswill need to better coordinate efforts when Panelists also stressed the need to exploredevising strategies for the next 15 years. non-traditional financial instruments, basedInnovative ideas will be vital because, while on the findinggs of te Report of the Worldcountries are more informed about institu- Panel on Financing Water Infrastructure,tional solutions and priorities, financial which should be adapted to the MNA re-mechanisms for regional cooperation need gion.to be further explored. Joint efforts, as wellas identifying and agreeing on common po- Recommendations from the closing sessionsitions, are needed to ensure the maximum were included in the Regional Statement,

impat o fudingoptonsfromthepriate which was submitted to the 3WWF Secre-impact of funding options from the private tariat on March 21. Dr. Mahmoud Abu-Zeidsector, EU, World Bank and Islamic Bank. con th key Dr. oud AteidAlso, donors must create operational conveyed the key messages of the statementmechanisms that build on existing initia- to the Ministerial Conference on March 22.

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l's~~~~~~~~~t es

A VNEXES., 1

Annex 1AGENDA

The 3 World Water ForumMiddle East and Mediterranean Regional Day

March 20, 2003Takaragaike Prince Hotel, Kyoto, Japan

8:00 - 8:30: Arrival of Participants

8:30- 11:00: OPENING SESSIONWater Policy Reforms - Challenges and AchievementsVenue: Prince Hall

Chairperson: Dr. Ismail Serageldin, Director General, Library ofAlexandria and Former Chairman of Global Water Partnership

8:30 - 8:35: Welcoming Remarks by Chairperson

8:35 - 8:45: Introduction of the DayMr. Salah Darghouth, Sector Manager, Water and Environment, MiddleEast and North Africa Region, the World Bank

8:45- 9:00: Egyptian Children Performance: A Better Future ror You and Me(Part l)

9:00 - 9:10: Water, Growth, and Socio-Economic Development in the ME/MEDRegionMr. Peter L. Woicke, Managing Director, World Bank Group andExecutive Vice-President, International Finance Corporation

9:10 - 9:20: Water Policy Reform Challenges and Achievements in EgyptH.E. Dr. Mahmoud A. Abu-Zeid, Minister of Water Resources andIrrigation, Egypt

9:20 - 9:30: Water Policy Reform Challenges and Achievements in TunisiaH.E. Mr. Ameur Horchani, Secretary of State in charge of WaterResources and Fisheries, Minister of Agriculture, the Environment andWater Resources, Tunisia

9:30 - 9:40: Water Policy Reform of the Mediterranean and Linkages with the EUWater InitiativeMs. Rodoula Zissi, Deputy Minister for the Environment, PhysicalPlanning and Public Works, Greece (EU Presidency)

9:40 - 10:30: General Discussion

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Annexes

10:30 - 11:00: Egyptian Children Performance: A Better Future for You and Nie(Part II)

11:00 - 12:30: Lunch Break

12:30 - 15:15: THEMIATIC SESSIONS Four Key Pillars for Water PolicyReforms

THEMATIC SESSION: Groundwater and Shared Aquifer ManagementV'enue: Room Hiei

Chairperson:

Rapporteurs: Dr Rawya Kansoh, Water Expert, UN-ESCWA andMr. Satoru Ueda, Senior Water Resources Specialist, the World Bank

12:30 - 12:45: Introduction of the session: Groundwater Management: LessonsLearned from Sana'a and Barcelona workshopsMr. Satoru Ueda, Senior Water Resources Specialist, the WorldBank

12:45 - 13:00: Keynote Address: Overview of Groundwater Management in theME/MED RegionDr. M. Ramon Llamas, Professor Emeritus, Complutense University,Madrid, Spain

13:00 - 13:15: Lessons from the Global and Regional ExperiencesDr Rashid AI-Hmoud, Professor, Texas Tech University, USA

13:15 - 13:30: Country Experiences: YemenH.E. Mr. Jamal M. Abdo, Chairman, National Water ResourcesAuthority, Yemen

13:30 - 13:45: Country Experiences: JordanMr. Edward Qunqar, Director, Ministry of Water and Irrigation,Jordan

13:45 - 14:00: Questions and answers from the audience (coffee available)

14:00 - 14:15: Shared Aquifer Management: Nubian AquiferDr. Khaled Abu-Zeid, Senior Water Resources Specialist, CEDARE

14:15 - 14:30: Shared Aquifer Management: North Western Sahara Aquifer

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Annexes

Mr. Rachid Taibi, General Director, Water Resources NationalAgency, Algeria


15:10 - 15:15: Concluding Remarks

THEMATIC SESSION: Water, Agricultural Policies and Food SecurityVenue: Room Takasago

Chairpersons: Dr. Ahmed A. Goueli, Secretary-General, Council ofthe Arab Economic Unity, Egypt and Mr. Juan Canovas Cuenca,Chairman, GWP-MED Advisory Board/Chairman, EMWIS

Rapporteurs: Dr. Bayoumi Attia, Adviser, Ministry of WaterResources and Irrigation, Egypt and Ms. Shobha Shetty, SeniorEconomist, the World Bank

12:30 - 12:35: Introduction of the session: Dr. Ahmed Goueli, Secretary-General,Council of the Arab Economic Unity, Egypt

12:35 - 12:55: Water for Food in MED/ME in 2025Dr. Mark Rosegrant, Senior Researcher, IFPRI

12:55 - 13:15: Water, Agriculture and TradeMs. Shobha Shetty, Senior Economist, the World Bank

13:15 - 13:25: Water and Agricultural ProductivityDr Theib Oweis, Senior Irrigation and Water Management Scientist,ICARDA

13:25 - 13:45: Vulnerability and PovertyMr Ahmed Oulhaj, Advisor to the Minister of Agriculture and RuralDevelopment, Morocco

13:45 - 13:55 Sustainable Use of Water Resources for Agricultural Development inWetland AreasMr. Spyros Kouvelis, Coordinator, MedWet-The MediterraneanWetlands Initiative


15:10 - 15:15: Closing Remarks

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Annexes

THENIATIC SESSION: Institutional Reforms: Decentralization and Public-PrivatePartnerships

*'enue: Room Suehiro

Chairpersons: Dr. Eglal Rached, Regional Director for the Middle Eastand North Africa, IDRC

Rapporteurs: Dr. Elly Baroudy, IDRC and Mr. Ashok Subramanian, LeadWater Institutions Development Specialist

12:30 - 12:40: Introduction of the Session and Overview of the Water DemandManagement Forum in MENADr. Elly Baroudy, IDRC

12:40 - 13:00: Keynote Address: Efficient Integrated Water Management RequiresInstitutional ReformMr. Abdelkader Hamdane, Director of Rural Development andEngineering, Ministry ofAgriculture, the Environment and WaterResources, Tunisia

Decentralization13:00 - 13:15: Comparative Experiences in Decentralization and Participatory Irrigation

Management in MENA - Lessons LearnedMr. Qahtan Abdul-Malik, Director, Central Unitfor Irrigation and WaterMonitoring, Ministry ofAgriculture and Irrigation, Yemen

13:15 - 13:30: Overview of Decentralization in Asian Countries and links withME/MED Experiences and Future StrategiesDr. Tsugihiro Watanabe, Research Institute for Humanity and Nature,Ministry of Education, Culture, Sports, Science and Technology, Japan

13:30 - 13:45: The Dialogue on Effective Water Governance in the MediterraneanMr. Vangelis Constantianos, Executive Secretary, GWP-Med

Public Private Partnerships13:45 - 14:00 Private Sector Participation in Water Resources Management in

MoroccoMr. Mokhtar Bzioui, Director of Research and Water Planning, Ministryof Land Use Planning, Water and Environment, Morocco

14:00 - 14:15: Private Sector Participation in Water Resources Management inJordanEng. Mohammed Najjar, Ministry of Water and Irrigation, Jordan

14:15 - 14:30: Mobilizing Financial Resources and Attracting Investment/Public-PrivatePartnershipsMr. Mohammed Benblidia, President, Mediterranean WaterInstitute (IME)

14:30- 15:10: General Discussion

15:10 - 15:15: Closing Remarks

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THEMtATIC SESSION: Non-Conventional Water ResourcesVenue: Prince Hall

Chairperson: H.E. Dr. Abdelmajid Attar, Minister of Water Resources,AlgeriaRapporteurs: Dr. Karim Allaoui, Focal Point for Water ResourcesManagement, Islamic Development Bank and Mr. Manuel Schiffler,Senior Economist, the World Bank

12:30 - 12:40: Opening AddressH.E. Dr. Abdelmajid Attar, Minister of Water Resources, Algeria

12:40 - 12:50: Opening AddressDr. Amadou B. Cisse, Vice President (Operations), Islamic DevelopmentBank

12:50 - 13:05: Trends in Desalination in the ME/MED RegionDr Adil Bushnak, Bushnak Group, Saudi Arabia

13:05 - 13:20: Innovative Use of Non-Conventional Water Resources in CyprusDr. Chrysostomos Kambanellas, Ministry of Agriculture, NaturalResources and Environment, Cyprus

13:20 - 13:30: Questions and answers from the audience on Desalination

13:30 - 13:50: Wastewater Reuse in ME/MED RegionDr. Akissa Bahri, National Research Institute for AgriculturalEngineering, Water and Forestry, Tunisia

13:50 - 14:00: Questions and answers from the audience on Wastewater Reuse

14:00 - 14:20: Irrigation with Saline Water for Sustainable Agricultural ProductionDr. Donald Suarez, Director of US George Brown Salinity Laboratory,University of California, Riverside, USA

14:20 - 14:35: Biosaline Agriculture: An Approach to Utilization of Brackish WaterDr. Kawser Malik, Director General of Biological Sciences, PakistanAtomic Energy Commission, Pakistan

14:35 - 14:50: Questions and answers from the audience on Saline Water Use

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14:50 - 15:10: General discussions focusing on common aspects of non-conventionalwater resources in the context of integrated water resources management


15:15 - 15:45: Coffee Break

15:45- 18:00: CLOSING SESSIONThe Way Forward and Recommendations for ActionVenue: Prince Hall

Chairpersons: Dr. Ismail Serageldin, Director General, Library ofAlexandria and Former Chairman of Global Water Partnership and ProfMichael Scoullos, Chairman MIO-ECSDE and Chairman GWP-Med

15:45 - 16:00 Introduction of the Panel

16:00 - 17:45: Panel and General Discussion


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Annex 2Middle East and Mediterranean Regional Day, March 20, 2003

Takaragaike Prince Hotel, Kyoto, Japan

Closing Session -Water Panel15:45 - 18:00

What is the objective of the Panel?The objective of the Water Panel is to broaden the debate of the Regional Day in an effort toincorporate the perspectives of a wide range of stakeholders from the region. The focus of thediscussion will be on water sector reforms: strategies for action and recommendations at theregional level. Panelists are not expected to make any presentation or statement on theirrespective country or sector of interest. Rather, they are invited to answer any question raised bythe moderators of the session based on observations from the audience.

What is expectedfrom the Panelists?Based on their views of the Regional Statement and their participation in the opening andthematic sessions, the Panelists are invited to discuss actions to implement their visions forwater sector reforms in the region. More specifically, Panelists are invited to propose actionablerecommendations at a regional level through the broad framework of integrated water resourcesmanagement.

What is the expected output of the Panel discussions?The Panel discussions will provide ideas and inputs for the call for action; enhance the dialoguebetween stakeholders and Ministers scheduled at the Forum; and contribute to the design of afuture Middle East and Mediterranean Regional Water Partnership in close collaboration withcountries and partners.

List of Panelists:(1) H.E. Dr. B. Aminipouri, Deputy Minister for Soil and Water Directorate, Ministry of

Jihad-e - Agriculture IranH.E. Dr. Abdelmajid Attar, Minister of Water, Algeria

(2) S.E. Mme Roselyne Bachelot - Narquin, Minister for Environment and SustainableDevelopment, FranceH.E. Mr. Altero Matteoli, Minister for the Environment, ItalyMr. Redaud, Plan Blue, UNEP

(3) Prof. Youssed Nouri, Co-Chairman, Mediterranean Information Office for Environment,Culture and Sustainable Development (MIO-ECSDE)

(4) Ms. Houria Tazi Sadeq, President, ALMAE, Morocco and UNESCO(5) Dr. Ashgan Abou Gabal, Communication and Rural Development Expert, Egypt

Mr. Andres del Campo, Chairman, Euro-Mediterranean Irrigation Communities NetworkMr. Abdelaziz Limam, SONEDE, Tunisia

(6) Representative from JICA(7) Dr. Eglal Rached, Regional Director for Middle East and North Africa, IDRC

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Annex 3Statement of Middle East and Mediterranean Regional Day

From Scarcity through Reform to Security1. Key Issues. Water resource management issues in the Middle East and MediterraneanRegion are among the most critical of any region in the world. Annual per capita wateravailability for the Southern Mediterranean region has fallen from about 3,400 m3 in 1960 toan average of about 1,200 m3 today. It is projected to fall to just over 500 m3 in 2025 due tohigh population growth rate and increased urban and rural water use. In many parts of theregion, dwindling water resources are threatening people's livelihood, the environment, andeconomic growth. Intermittent supply is common in many cities and agricultural watersupply faces the challenge of competing demands for water.

2. Strategies for Actions. Moving from water scarcity to water security in the region isachievable only through major reforms in the management of water resources. Somecountries have made significant progress with reforms to meet their water challenges and toachieve the Millennium Development Goals, while others are at early stages of the reformagenda. Water reform entails establishment of a policy and institutional framework,including integrated water resources management programs to adequately address depletingwater resources, increasing competition for water, and problems of water quality. Efficientand effective water use is critical for success. Furthermore, water reform requires capacitybuilding/enhancement and empowerment of the public and private sectors as well ascommunity organizations to realize and fulfill their roles.

Governments in the region will act upon their primary responsibility in creating the enablingpolicy, economic, social and environmental conditions for sustainable, efficient and equitablewater management. They will promote a reform agenda that should at least contain thefollowing four key strategic actions: (i) Adopting an integrated water resources managementframework for planning and management of water resources in the country; (ii) Promotingefficient use of water through technical instruments and economic incentives, includingappropriate pricing and cost recovery mechanisms; (iii) Mobilizing stakeholders to advanceparticipatory and decentralized approaches and public-private-partnership; and (iv)Promoting regional and international partnerships to foster technical and financialcooperation on water issues. (See Annex for a more detailed description.)

3. Recommendation. There is a need to support the countries' reform agenda, whichcalls for concerted and sustained effort among governments, stakeholders, localcommunities, and partner organizations. It is recommended that partnership activities bestrengthened among the countries of the Region (i) to deepen the understanding of commonwater challenges, (ii) to enhance knowledge and information sharing between the countriesand the partners, and (iii) to provide systematic support for strategy formulation and capacitybuilding for governments, institutions, and civil society organizations. Recommendations ofthe Report of the World Panel on Financing Water Infrastructure are noted and will beadapted to the regional situation.

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Key Strategic Actions for Reform in the Water Sector

Institutional reform is a central requirement for comprehensive water planning andmanagement yet is one of the most difficult measures to implement. A reform strategy mustbe flexible and tailored to the requirements of individual countries and basins. Certain keyactions are essential to the reform process in the water sector in the Middle East andMediterranean Region as follows:

1. Adopting integrated water resources management as the key process utilized inaddressing the water challenges

Integrated water resources management is a framework for coordinating sectoral needs, waterand water-related policy, resource allocation, and management within the context of social,economic, and environmental development objectives. It provides a systematic process forlinking water and water-related policies, objectives, and water uses to the design andimplementation of programs, improvement of decision-making, and management of naturalresources.

Governments in the region would be well served by adopting an integrated approach to waterresources management because: a) it is globally accepted and makes good sense; b) itassesses all sources, including non-conventional ones, and uses of water in a comprehensivemanner from both water quantity and water quality aspects; c) it incorporates social andenvironmental considerations directly into policy and decision making; d) it directly involvesthe stakeholders; and e) it is a tool for optimizing financing and investments under tightfinancing climate.

2. Using water more efficiently for most value and benefit through technicalinstruments and economic incentives

Given demographic pressure on limited resource and financial and technical constraints onnew supplies, greater emphasis should be put on demand management, covering both directmeasures to control water use through regulation and technology and indirect measures thataffect voluntary user behavior. This may be achieved through market mechanisms, economict financial incentives, and public education.

Resource pricing progressively brought closer to real economic levels through application offinancial instruments and incentives. Also, technical interventions are important in all sectorsto reduce unaccounted-for water and losses and maximize use of non-conventional sources.Modernization of both conveyance and distribution systems and use of non-conventionalsources have particular potential.

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3. Mobilizing stakeholders to promote participatory and decentralized approaches andfacilitating Public-Private Partnership

Water management consists of: (i) management of the resource itself and (ii) delivery ofwater services. Management of the resource includes policy, legal/regulatory framework,allocation, and environmental aspects. National policy formulation is inherently a centralizedgovernment function, but many other aspects of water management may be delegated to theregional, basin, or local institutions/organizations. Decentralization and stakeholderparticipation in decision-making not only promote accountability and transparency but alsocreate strong ownership of and commitment to the management of water resources.

Delivery of water services generally involves wholesaling of water to intermediaries andretail distribution to end users - households in a municipality, farmers in an irrigationscheme, etc. Services delivery can be by public, private, or through a public/privatepartnership. An increased role of the private sector, where appropriate, should be pursued forsupplying cost-effective and quality service under an effective regulatory framework in theurban as well as in the rural sectors.

4. Promoting regional and international partnerships to foster technical and financialcooperation on water issues

Designing water policies and financing their implementation in line with country-specificcircumstances and priorities, is the primary responsibility of national governments. Theinternational community must play its part in this effort to enhance development assistanceand to coordinate better their support programs.

Given the complexity of the policy and institutional reform process, knowledge generationand sharing, as well as information / data sharing on good practices, systems, andtechnological development are essential, strengthening of partnership and networkingactivities in the Middle East, North Africa, and the Mediterranean region among thecountries, as well as with partner organizations is critical to the success of the strategicactions outlined here. Recommendations of the Report of the World Panel on FinancingWater Infrastructure are noted and will be adapted to the regional situation.

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