Transcript Slide 1

The global commodification of
wastewater
Panel on New Trends in Regulation, Symposium
on Water Governance: the Public-Private Debate,
organized by Unité Mixte Internationale
(University of Arizona and Centre National de la
Recherche Scientifique) and Center for
Sustainability of semi-Arid Regions and Riparian
Hydrology, University of Arizona, 4 February
2009
THE GLOBAL
COMMODIFICATION OF
WASTEWATER
Christopher Scott
[email protected]
Udall Center for Studies in Public Policy, &
Dept. of Geography & Regional Development
University of Arizona
Wastewater Boom
Urbanization
Water supply
Expanding sewerage (collection & “disposal”)
Millennium Development Goals investments
Yet… wastewater (as treated effluent and raw
sewage):
– a traded commodity (informal and increasingly formal
markets)
– regulated using overly simplistic, antiquated frameworks
– receives inadequate investment, management & policy
– research emphasis on case study documentation
Water & Sanitation in the
Millennium Development Goals
(targets to achieve by 2015)
• MDG 1 Eradicate extreme poverty and hunger
• MDG 2 Achieve universal primary education
• MDG 3 Promote gender equality and empower women
• MDG 4 Reduce child mortality
• MDG 5 Improve maternal health
• MDG 6 Combat HIV/AIDS, malaria and other diseases
• MDG 7 Ensure environmental sustainability
• MDG7, Target 3: Reduce by half the proportion of
people worldwide without safe drinking water and basic
sanitation
Sobering Demographics
880 million additional
population by 2015,
virtually all in developing
countries.
After 2015, all worldwide
growth in population will
take place in developing
country cities.
Urban Explosion
India to cross the 50-50 urban-rural population
threshold… 750 million urban Indians by 2050.
China is actively planning for cities each with
more than 100 million population.
Africa’s urban population growth rates among
the highest in the world.
Latin America predominantly urban for decades.
Western U.S. experiencing rapid urban growth.
Urban Water Supply Growth
Millennium Development Goals face resource constraints (water, investment). Progress towards
sanitation goals lagging behind water supply; therefore, wastewater management is critical.
In 1990 - 23% of the world’s population lacked safe
drinking water and 51% lacked adequate sanitation
Today - roughly 1.1 billion people still live in
conditions of water stress or scarcity; 2.6 billion
people lack any improved sanitation facilities
MDG Challenge - Supply water to 1.2 billion
additional people (100 million / yr or 260,000 / day)
- Provide sanitation to 1.8 billion (180 million / yr or
400,000 / day)
DRINKING WATER COVERAGE
Between 1990-2002, access rose from 77% to 83%
SANITATION COVERAGE
Between 1990-2002, coverage rose from 49% to 58%
FINANCING GLOBAL WATER GOALS
ESTIMATED COSTS TO MEET THE 2015 WATER AND SANITATION
TARGETS (HIGHLY VARIABLE)
-$10-12 BILLION (WHO-UNICEF)
– water access and basic sanitation
-$49 BILLION (Camdessuss Report)
– full water ($17bill), sewage connections and
primary wastewater treatment ($32bill)
-$180 BILLION (World Water Commission)
– maintain full water supply (drinking, agriculture, energy, industry)
and sanitation needs by 2025
Acknowledgment:
Anthony Rock, Arizona State University
[email protected]
SOURCES OF GLOBAL WATER FINANCING
• 64 % - Domestic public sector financing at the
national or local level (from taxes, user
fees, public debt, etc.)
• 19% - Direct investments from domestic private
sources
• 5% - Direct investments from international
private sources
• 12% - International sources of support and
cooperation including multilateral and
bilateral Overseas Development Assistance
USG INVESTMENT
FY 2003-2005
$1.7 BILLION IN ODA
100 WATER AND RELATED PROJECTS
24 MILLION PEOPLE RECEIVED IMPROVED WATER ACCESS
26 MILLION PEOPLE RECEIVED ACCESS TO IMPROVED SANITATION
15 USG AGENCIES AND DEPARTMENTS SUPPORTED INTERNATIONAL
WORK (WITH VIRTUALLY NO DIRECT APPROPRIATIONS)
KEY AREAS INCLUDED: AFGHANISTAN, BANGLADESH, COLOMBIA,
EGYPT, ETHIOPIA, HAITI, INDIA, INDONESIA, KENYA, NEPAL,
PAKISTAN, PHILIPPINES, SOMALIA, SUDAN, UGANDA, NILE BASIN,
OKAVANGO BASIN
ESTIMATED FINANCIAL SUPPORT FOR GLOBAL WATER PROGRAMS
BY LEADING USG FUNDER, FY2005
USAID
$397.7 million
Millennium Challenge Corporation
$89.9 million
Environmental Protection Agency
$79.3 million
Department of State
$36.0 million
Department of Defense
$3.4 million
total
>$600 million
(figure excludes Iraq and Afghanistan – additional $290 million)
(loans, guarantees, and insurance can average an additional $200 million)
Selected International Organizations
Fiscal Year 2005
Organization
UNICEF
WHO
UNESCO
UNDP
WMO
UNEP
FAO
Total
U.S. Contribution
to Core Budget
$342.00M
$96.11M
$77.00M
$108.00M
$11.00M
$6.00M
$81.62M
$721.73M
% of Core Budget
Spent on Water
10.4%
1.9%
8.1%
13.1%
4.6%
12.3%
0.8%
(The U.S. does not earmark contributions to core budget, but
by comparative percentage $36.6M was spent on water
programs.)
WASTEWATER IMPLICATIONS
• Treatment not part of MDGs
• National finance woefully
inadequate (e.g., India $7 billion
investment is 10% of needed)
• Most existing
plants not
working (Ghana 7
plants working of
57 total)
AGRICULTURAL REUSE INEVITABLE
+
=
?
Kumasi, Ghana
Hyderabad, India
Faisalabad, Pakistan
Prescott Valley
Arizona
Effluent Auction
Oct. 2007
2,724 acre-feet (3.36 million cubic meters) of
effluent per year
Winning bid of $24,650/ acre-foot = $67M by
Water Property Investors, LLC (New York)
Floor price $19,500/ AF by Aqua Capital
Management (Nebraska) - year-long negotiation,
delayed initial auction
Nominated for “Water Deal of the Year”
Hermosillo, Sonora
Commodity, Resource, or
Hazard?
• Wastewater value high in water-scarce regions
• Latent irrigation and environmental demand
• Increases land values
• Growing resource-value for urban reuse
• Wastewater markets & informal trading expected
to increase
• Current regulation absent or highly disarticulated
(minimizing hazard impact; little attention to
wastewater resource or “service”)
Wastewater Regulation
Multiple uses, multiple users
Overlapping jurisdictions
– Water supply
– Environmental protection
– Urban development – Agriculture/ irrigation
– Public health
– Civil society
Need coherent institutional framework
– Promote beneficial reuse while mitigating risk
– ‘Polluter pays’ principle to mobilize funds
– Stockholm Framework - adaptive, evolutionary
Risk Mitigation
‘Yuck’ factor, public opinion
Trust in authorities?
Reuse and growth (landscaping & turf?)
Environmental use more benign - but
may not compete in markets
Agricultural reuse with crop restrictions
(non-edible and fodder)
– Scott, C.A., N.I. Faruqui, L. Rachid-Sally (eds.) 2004.
Wastewater Use in Irrigated Agriculture. CAB
International, Wallingford - free download from:
http://www.idrc.ca/en/ev-31595-201-1-DO_TOPIC.html
Thanks.
For further information, see:
udallcenter.arizona.edu/wrpg/waterreuse.html