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Page 1: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

•'•••••.•íVíkr-rM-hs-

Page 2: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

W A T E R : N A T U R E U N I Q U E E L E M E N T

er is the world's, most abundant resource, l&t most -water is unusable; the restis a precious commodity liiat must be preserved and protected, ^fatcr is essentialfor life. The value of water changes according to its use, location, time of avail-anility and quality.

is widely distributed around the glohe. In fact,Over 70 percent of the earth 's surface is covered with water.

Ç7 percent of all water is in the world's oceans as unusable sali water.

Of lhe remaining 3 percent freshwater:

—- 87 percent is locked in ice caps, glaciers, the atmosphere, soil, or deep aquifers;

—' only: dkput 13 percent (0.4 percent of all water) is usable.

And of that, less than 1 percent is in the Middle East and North África.

WorldTotal Water

WorldTotal Accessible Freshwater

WorldTotal Freshwater

World99.1%

MENARegion .9%

13% AccessibleFreshwater

"Water, water, everywhere,nor any drop to drink "

— SAMUEL TAYLOR COLERIDGEThe Rime of the Ancient Mariner

Tile ^liclale Ea0t ana North Afriç^ (MHNA)Tfigiiïrt refers to the countries ana territories oí Algeria, Bahrain, Egypt, Iran, lr;U{,Waylv^Jyruaiiy Kuwait, Lebanon, Libya, Malta, Morocco, Oman, QaUr, Saudi Arabia, Syria, Tunisia, WniLerl Arab HrniraLoii,Yymfcin, ana tlie West EanE and Gaza.

TLÍB booklet expand» on tlie concepts ill tbe WojiJ Bank report A Strategy for Managing Vfcltcr in the Middle East and NorthAfrica, 1994. Copies of tbe report and tbis liookUt tHay be otitatnorl fttiiii tlur External Aífüir» Unit, MkUle East anil NorthAfriia Region, Tlie World Bant, 1818 H Street, NW, WasbmgtotJ, DC 20433 ; USA.

This pubiicaLion nas been prepared by staff of tbe Agriculture and Water Resources Management Unit of (lie Technical Depart-ment, Middle Kasl and Nurth Africa Ri!gu)i:i.

Page 3: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

FOREWORD

INTERNATIONAL REFERENCE CSNTKFFOR COMMUN! : Y WATBe cUPPLY ANTiiANITAÏO (iRC)

lie countries of the Middle Eastand. North Africa (MliNA) regionare home lo five percent of the

world's people, nut have less than one per-cent of the world's renewable fresh water.Inexorable population growth ana associatedwater usage by farmers, firms ana familieshave reduced Lhe region's limited per-eapitasupply to only one-Lnird of its I960 level.Per-capita waLer availability is expected, tohalve over tlie next 30 years, exposing all hutone or two countries to severe problems orwater scarcity. Unless there are fundamentalchanges in the way waLer resources aremanaged and used, the region as a whole willexperience a worsening crisis or water scarcityand economic decline. A vicious circle willset in whereby harsh water shortages ad-versely affect economic growth, and slowergrowth in turn constrains the investmentneeded to improve water availability. Thisdownward spiral would spell disaster for theregion.

But MENA's looming water crisis and itsconsequences can be averted. The strategyoutlined in this booklet presents a way ofbreaking the vicious circle, and offersprospects for a virtuous spiral whereby"Water lor Growth" policies today can lay thefoundations for "Growth for ^ater" policiestomorrow. The strategy proposes priorityinitiatives Lo be undertaken by governmentsin partnership with domestic users andexternal sources of financial and technicalsupport. They include: mobilizing govern-

ments and peoples to promote nationaland local partnerships and participatoryapproaches for using water wisely; integrat-

ing water resources management to recon-

cile competing claims on limited supplies;using water more efficiently to get the mostvalue from it; seeking alternative sources

of water to free countries I rom reliance onfinite Ireshwater; and, promoting regional

ana international partnerships to fostertechnical and financial cooperation on water

Designing the policies and raising the fundslor implementing the strategy, in line withcountry-specific circumstances and priorities,must be the primary responsibility of na-tional governments. But I believe that theinternational community, including theWmd Bank, must also play its part in thiselloii. lo this end, the booklet includesproposals for a targeted, costea, lime-boundMENA Water Partnership and Action

Program, to be launched aL a Regional

water Conjarance in 1997. The Conferencewould provide a forum lor definition of, andcommitment Lo, country-level programs andpartnerships by governments and donors,^ e at the Bank sLand ready to increasesubstantially our financial and technicalassistance to support countries in imple-menting strategies and action plans in linewith their own individual needs. It is myhope that publication of this booklet will helpstimulate trie important preparatory work forthe Conference and the wider objective it isintended to serve — long-term water security,essential for realizing prosperity and peacethroughout the MUNA region.

CAIO KOCN-W"l:SI-R,Viee President,Middle East and North Africa Region,The World. Bank

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Page 5: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

TABLE OF CONTENTS

I. MENA'S LOOMING WATER CRISIS

II. FROM SCARCITY TO SECURITY: OPTIONS AND OPPORTUNITIES 7/

III. THE MENA WATER PARTNERSHIP: A PLAN FOR ACTION 23

REFERENCES

WoAd Resources Institute; W.irldwatch; Pacific Institute for Studies in Development, Environment andSccuriLy; Stockholm Environment Institute; Water in Crisis, Peter Gleiek (1993); German DevelopmentInsLiLuLe; World Bank: World Development Report (1995); Water Resources Management Policy Paper (1993);

A Strategy for Managing Miter in the Middle East and North Africa (1994); Middle Bast and North Africa

Environmental Strategy (1995); ami other World Bank reports and esLimates. Most data are for tne 1990s.Other hrlormation, such as "renewable water resources" îruiy date tact earlier, but changes since then arebelieved Lo be minimal. US dollars and cents are-used .-throughout.

/33¿? »>:: I

Page 6: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents
Page 7: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

/ . MENA'S LOOMING WATER CRISIS

aler shortages are a global

problem. The world is rapidlymoving toward shortages or

freshwater. Global water use has increasedfivefold "this century, and today's per-capiLaavailability is predicted to decline hy a thirdover the next generation, \vater shortagesare rapidly emerging even in water-richcountries irom the United States to China;recent droughts in Europe and North A i ricahave emphasized Lhe precarious balancebetween water supply and demand.

The MENA region is the driest m the

world. The region ¡s poorly endowed withnatural rreshwaLer supplies [Illustration 1J.

Three-quarters ol the land mass is arid. Andmore than a third or the river supply flowsfrom countries outside the region. Rainfallis low, erratic, and poorly distributed anddroughts and deserts define the region.

demand in the region is growing

fast. MENA countries, home to 5 percentol the world's people, contain less than1 percent or the world's annual renewablefreshwater. The population, having morethan ao LI bled in the past 30 years to about280 million, could double again in the next30 years. Cities growing at more than 4percent a year, already contain 60 percent ofthe region's people, ^ater demand for

7. Worldwide Net

Oceania

Latin America

North America

Eastern Europe andCentral Asia (ECA)

Africa

Western Europe

Asia

MENA*

Renewable Water Distribution by Region

Net Annual RenewableWater Resources

(billions of cubic meters)

769

10,766 : ;

5,379

7,256

4,184

1,985

9,985

355

Population(millions)

21

466

287

495

559

383

3,041

284

and Per Capita

Per Capita(cubic meters)

36,619

23,103

18,742

14,659

7,485

5,183

3,283

1,250

"Totals may not add due to rounding.

Sources: World Development Report, 1995; World Resources, 1992-93; Pacific Institute for Studies in Development,Environment and Security - Stockholm Environment Institute; and World Bank estimates, 1995.

Page 8: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

domestic and industrial uses nas exploded in

recent decades. At the same time, tubewelltechnology and liie development of agricul-ture have increased water use in rural areas.

availability is falling to crisis levels.

About 45 million or the regions people —16 percent — lack safe water, and more than80 million lack sale sanitation. As popula-tions nave grown against a background offinite freshwater resources, so the wateravailable to individuals has fallen dramati-cally. Annual per-capita availability, about3,300 cubic meters in I960, has fallen by60 percent, to about 1,250 cubic meterstoday, the lowest in trie world and it ispredicted to fall by another 50 percent toabout 650 cubic meters by 2025 ¡Illustration

2]. This average covers all human activities— domestic, industrial and agricultural —

and masks extreme local variability. Forexample, in Yemen and the West Bank andGaza, per-capita availability todayis less than 180 cubic meters, already farbelow the projected regional average 30 yearsfrom now [Illustration 3j.

Some countries are destroying their capital,

mining grounawatar. Groundwater resourcesthroughout the region are overexploited[Illustration 3], Jordan and Yemen withdraw25 to 30 percent more from aquifers than isbeing replenished, and in Gaza aquifers arebeing mined even lasler. Such over-exploita-tion risks further damage to undergroundwater reserves through the intrusion ofseawater or the leaking of pollutants. Thoughnot yet as dramatic, shortages due to over-extraction of groundwater are imminent inthe Maghreb countries.

2, Projected Renewable Resources Per Capita by Major Region - Year 2025

1960

Source: World Resources 1992-93

1990 2025

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3. Water Availability and Usage in MENA Countries

Country

Algeria

Egypt

Bahrain

Iran

Iraq

Israel

Jordan

Kuwait

Lebanon

Libya

Malta

Morocco

Oman

Qatar

Saudi Arabia

Syria

Tunisia

UAE

Yemen

'West Bankand Gaza

Total MENA

AnnualRenewableResources

BCM

18.4

58.0

n.a.

118.3

104.0

2.1

0.8

4.8

0.7

0.03

30.0

2.0

0.02

2.2

5.5

4.4

0.3

3.0

0.2

355

AnnualWithdrawals

BCM

3.0

56.3

0.2

46.5

43.9

1.9

1.0

0.8

2.8

0.02

11.0

1.3

0.15

3.6

3.3

3.0

0.4

3.9

0.2

183

As a % ofAnnual

RenewableResources

10

97

_

39

42

90

125

17

400

67

37

65

750

164

60

68

133

130

100

52

Per-capitaRenewableAvailability

in 1995 (CM)

655

1005

_

182Ó

4952

375

213

1200

130

1083

1053

118

385

489

167

176

105

1250

Water Usage {%)

Domestic

22

7

60

4

3

16

20

64

11

15

76

6

3

36

45

7

13

11

5

12

6

Industry

4

5

36

9

55

5

32

4

10

8

3

3

26

8

10

7

9

2

13

7

Agriculture

74

88

4

87

92

79

75

4

85

75

16

91

94

38

47

83

80

80

93

75

87

1. As allocated between Israel and Gaza (1991), currently under negotiation.

Sources; World Resources 1992-93; Pacific Institute for Studies in Development, Environment and Security; StockholmEnvironment Institute; arid World Bank estimates, 1990-1995,

Page 10: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

Shortages are compounded by pollution.

Contamination by fertilizers and peslicides,dumping or municipal and. industrial waste-wale r into rivers and lakes, Solid wastedeposits along river banks, and uncontrolledseepage Ixom unsanitary landfills — all tliesefactors are degrading freshwater resourcesand imposing health risks, especially forchildren, the primary victims of waterhornediseases. Morocco's most, important river,the Sebou, has become a waste dump for thecities along its hanks. Tunisia's largestreservoir, the Sidi Salem, and Algeria'sMilidja and Saida aquifers are threatened bypollution from cities, industrial diluents andagricultural runoffs. The Nile waters in

Egypt are contaminated by uncontrolled

industrial and agricultural discharges.

Too much water is going to low-value

agriculture, not enough to cities and

people. Much of the water crisis is caused bythe way water is used. In MFNA, 87percent of water withdrawn is allocated toirrigation and only 13 percent to municipaland industrial uses, compared, with 69percent and 31 percent worldwide. Agricul-ture is thus a crucial area in future water-usemanagement. Irrigation efficiency is ex-tremely low in most countries. In floodirrigation, only about 30 percent ol the waterreaches the crops. Urban water systems arealso inefficient, losing an average of 50percent of available supply as "unaccounted-for " water. Poor maintenance, inappropriatetechnology, and weak technical and financialmanagement are the problems.

Bjforts to improve the water situation are

uncoordinated. Local, national and interna-tional initiatives are underway to overcomethe water crises. Frequently, however, thebenefits are small. The reasons: nationalinstitutions do not work together; plans andprograms are often du pi ¡cative and some-times contradictory; donor involvement isfragmented and unfocused; and water isgenerally heavily subsidized, providing noincentives for conservation.

For years, great efforts nave been made tokeep pace with the burgeoning demand formore water. Massive investments havebrought water supplies and sale sanitation tomillions of people and have similarly enabledagriculture to remain a major contributor tothe economy of the region. Nevertheless,water demand increasingly outstrips supplythroughout the region, lliis worsening

Page 11: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

imbalance Between supply anu demand nasbrought many countries to the brink of

crisis.

The water crisis is imminent but can beaverted. Continuing current practices willplunge the region deeper into crisis, creatingconditions where conflict over scarce re-go urces at local and national levels becomesinevitable. Tfct this crisis can be averted, by afundamental change in direction that

involves mobilizing popular support for waterSaving; integrating water resources manage-ment and reconciling competing claims onlimited resources; allocating water to highest-value uses; conserving water and preventingpollution; and focusing international supportlor water initiatives on priority areas. 1 heMHNA Water Partnership proposed herewould he a decisive step in such a change indirection. •

Page 12: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

10

Page 13: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

II. FROM SCARCITY TO SECURITY:OPTIONS AND OPPORTUNITIES

AVERTING THE CRISIS

he critical water situation through-out the MENA region calls forimmediate action hy governments,

water users and donors working in partner-ship. I. be augmented, supply-orientedapproach to water development must giveway to integrated water management, withemphasis on a partnership or water suppliersand water users and on the conservationhoth of quantity and quality.

National efforts should he directed at:

• Mobilizing country efforts, includ-ing private participation — to develop

partnerships at national and local levels.

• Integrating -water resources manage-ment — to reconcile competing demands rorwater.

• Using water more efficiently andreducing pollution — to geL the most valuefrom it.

• Seeking alternative sources of water— to Iree countries from reliance on finitefreshwater supplies.

International efforts should he directed at:

• Promoting partnerships at regionaland international levels — Lo maximizetechnical and financial cooperation.

Page 14: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

MOBILIZINGCOUNTRY EFFORTS

Many communities are now reaching socio-poliiically sensitive limits oí waLer availabil-ity, where tlie cost oJ: managing shortages isbecoming a constraint on the lives of indi-viduais and on the economy. Averting a full-scale crisis will require changing attitudes atall levels and making the mental shift fromasking how much more water is needed todeciding what activities can he best anordedwilli the water available. That shift inthinking will result in water developmentbeing tackled in a coherent, integratedmanner, by a combination of strong publicand private sector institutions, and with avision tbat looks beyond the boundaries ofindividual countries.

Public awareness campaigns help change

behavior. People in the MhNA region arewell aware of local water scarcity. Butgovernments rarely enforce conservationmeasures or inform the public why economicincentives are needed to conserve water andshift it to highest-value uses. Appealsthrough schools and media-based publiceducation campaigns are, thus, needed tohelp change behavior.

Participation breeds success. In the past,decision-making on water affairs tended to hedivorced from local communities, which notsurprisingly felt little ownership of, orcommitment to, water services. Participationin water sector decisions, through nationalwater advisory councils with representativesfrom governments and water users, shouldincrease community acceptance. Socialassessments of traditional water users anduses, especially iti rural areas, should helpdefine participatory programs to enableholders of traditional water rights to main-tain their livelihood, while reallocating waterto higher-value uses.

user associations provide batter

services. Community-based associationsthat take responsibility for water delivery andsystem maintenance can improve servicesand help recover costs. In Tunisia, suchassociations have been functioning effectivelysince colonial times, and today they controlpractically all tubewell irrigation schemes.

12

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INTEGRATING WATERRESOURCES MANAGEMENT

The adoption or a comprehensive policyframework ana the treaLmenl ol water as aneconomic good, combined with decentralizedmanagement and delivery structures, is thebasis lor integrated water resources manage-ment. So long as water is abundant and ofgood quality, interaction between differentwater users and stakeholders may not beessential, and water projects can be imple-mented with little regard to their impactelsewhere. But as pressures mount, so doesthe need ror such interaction. Userscompete ror the same resource and waterquality is modified in ways that may affectwater s value to other users. fragmentedapproaches that rail to account for these'actors can incur rapidly rising costs in

terms of water quality degradation, waterallocation to low-value uses and actual waterlosses. Therefore, governments need toestablish a policy framework that takes along-Lerm perspective for the managementof water demand and supply, to ensure thatwater developments today do not compro-mise the environment tomorrow.

Central policy making ana decentralized

management is necessary. An in Leg ratedstrategy for managing water as a commonresource ensuring its raLional use is urgentlyneeded. Iraditionally, a myriad of watersector institutions have overlapping tasks;and competing users in agriculture, munici-palities and industry fragment the sectorfurther, making the coordination of resourceplanning and management by a centralinstitution critical. Some form of national

13

Page 16: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

water authority should he responsible for

designing ana implementing the national

water strategy. The mandate of the national

water authority and the sector's organiza-

tion as a whole, should he described in a

water law that defines water as a public good,

recognizes water rig'its and creates autono-

mous and decentralized managerial units; as

well as setting water quality standards,

pollution control and conservation guide-

lines. Water delivery, by contrast, should be

decentralized, to he the responsibility of river

basin and regional irrigation authorities,

water and sewerage utilities, and rural

communities. Morocco is one of the first

countries in the region to adopt such an

integrated approach [Illustration 4J. Also

Algeria is already moving toward creating

river basin authorities modeled on the

French system, a first step toward a decen-

tralized integrated management approach.

4. Morocco - Toward Integrated Water Management

Morocco faces a growing challenge inmanaging its water resources. Demands fromexpanding irrigated areas and a growingurban population are running up against therapid depletion and pollution of accessibleresources. Sanitation infrastructure anddrinking water supply have not kept pacewith demand. Only 15 percent of the ruralpopulation has access to potable water.Contaminated water is the major cause ofdisease in rural areas. Municipal, agricul-tural and industrial effluents, as well asunsanitary solid waste deposits, contribute topollution of surface and groundwater.

Past government strategies emphasized thedevelopment of additional water resources,an approach reaching technical and eco-nomic limits. The government has nowcommitted itself to an integrated waterresources management approach, based ona long-term national strategy, including anational water law that defines water qualitystandards, water conservation and costrecovery policies. Under this approach,Morocco plans to develop autonomous riverbasin agencies that will be responsible forregulating and monitoring the use and safedisposal of water, as well as for planningand funding related investments.

Morocco has embarked on a program ofintegrated water management supported bya Water Sector Investment Loan, covering theOum Er R'bia, a major river basin. Theproject, essentially a slice of the publicinvestment program, is supporting a numberof key policy reforms, institutional strengthen-ing and selected investments, to conservewater and control pollution of surface andgroundwater resources. The principalcomponents of Morocco's integrated pro-gram are:

Water Demand Management:• cost recovery• water-saving irrigation technologies• rehabilitation of small and medium-scale

irrigation

Water Supply Enhancement:• aquifer recharge •'•[.• reuse of treated wastewater/recycling• flood protection and prevention

Water Quality Improvement:• wastewater treatment• pollution prevention and control• watershed protection• public awareness campaigns

Multilateral and bilateral donors are fullycooperating with this approach.

14

Page 17: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

' • • • ' : " Ï : H : - - - V . - , :

USING WATER MOREEFFICIENTLY AND REDUCINGPOLLUTION

Reducing the demand for water hy reduc-ing the subsidies. Water lias a financial costas well as an opportunity cost, the latterrepresenting its highest achievable value.Almost nowhere do users connected to thesupply network pay anything near lhefinancial cost of water, let alone its opportu-nity cost. Thus, huge subsidies are needed tosupport water services. In Jordan, subsidiesto water utilities are equivalent to 1 percentor CJDP; and financial transfers to theirrigation authority are ten times tbe feesrecovered from farmers.

Pricing water appropriately is often thoughtto be unpopular, but this need not he so.Studies worldwide show that people will paythe real cost of water, if they receive reliableservice. Currently, tbe poor, who oftenreceive no water and sanitation services, paymany Limes tbe municipal rates to privatewater vendors. In Amman, water traderscharge US* 3 a cubic meter and in Tais:almost US$ 5 a cubic meter. 11 reliablenetwork services were available, people wouldwillingly pay for their upkeep, willingness-to-pay studies with user participation canhelp design tariff structures that cover servicecosts while keeping lileline use affordable tothe poor.

15

Page 18: íVíkr-rM-hs- · downward spiral would spell disaster for the region. But MENA's looming water crisis and its consequences can be averted. The strategy outlined in this booklet presents

Budgetary iinancitig of water investments ishighly inefficient because it exposes largemulti-year projects to the vagaries of annualvariations in available runas, and frequentfinancing gaps result in lime- and cost-overruns. Furthermore, it promotes aculture in the water-operating agencies inwhich capital is perceived to he free andassets do not have to he maintained. At aminimum, governments have to set prices tocover operation and maintenance costs. Inthe medium term, tariffs and other feesshould aim at recovering the full cost ofwater services. Illustration 5 provides a fewexamples of countries at various stages ofCost recovery.

Private involvement is vital. Under govern-ment control, the water sector has a trackrecord ol inefficiency and. poor cost recovery.But given the right incentives, privateinterests can improve the efficiency of wateragencies. Reducing the number of staff perwater connection in usually over-staffedutilities and improving tariff collection willraise cost recovery rates, reduce tariff in-creases, and generate investment funds. Thiscombination of increased efficiency andgreater revenues is essential if systems are to

catch up with past deficits and investmentshortfalls.

Transferring responsibility from public toprivate entities is traditionally unpopular andwill not take place overnight. The first stepto efficiency is to commercialize operations,as most European public utilities have donesuccessfully. For example, in the Gaza Strip,the .Palestinian authorities are preparing aperformance-based management operatingcontract to improve the drinking watersupply and wastewater treatment and disposalsystems. In addition to reducing water lossesand increasing cost recovery, the operatorwould also provide management support foran intensive investment program andeventually assist the authorities to merge thedifferent municipal water departments undera public water and wastewater company,managed according to commercial principles,for the Gaza region. Lebanon is also movingtoward contracting private operators for waterutilities.

More advanced alternatives for involving theprivate sector include management, lease,and concession contracts I Illustration Ò] torun utilities; or private companies to provide

5. Typical Water Tariffs in the MENA Region

In Morocco, current urban water tariffsrange from 44 cents to $1.35 a cubic meter.They are expected to increase progressively,so that by 1 998 they will cover operationand maintenance charges, as well as interestpayments for capital investments. In irriga-tion, the average tariff is about 2 cents acubic meter. In Tunisia, farmers pay about5 cents a cubic meter for irrigation water,whereas the total cost for production anddistribution is about 7 times higher. InJordan, municipal water charges average

about 38 cents a cubic meter — about one-third of total costs; and in 1995 the irriga-tion water tariff was increased from about 1cent to 2.5 cents a cubic meter — about halfof average O and M costs incurred over thepast ten years. In Israel, the average tarifffor urban drinking water is $1 a cubicmeter, fully recovering the total cost, pluspartly subsidizing agricultural water, sold onaverage for 40 cents a cubic meter. Agricul-tural water also received subsidies from thestate budget.

16

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6. Private Sector Alternatives

Contract

Service

Management

Lease

Concession

Applications

Meter reading, billing and collec-tion, and maintenance of privateconnections.

Operation and maintenance of thewater supply system or major sub-system.

Extended operational contract.

All features of the lease contract,plus financing of some fixed assets.

1 • : •

Incentives

Permits competition among multipleproviders, each with short-term andspecific contracts.

Contract renewed every one to threeyears, and remuneration based onphysical parameters, such as volumeof water produced and improvementin collection rates.

Contract bidding, with contractduration of about ten years;provider assumes operational riskand generates revenue.

Contract bidding, with contractperiod up to thirty years; providerassumes operational and investmentrisk.

Source: World Bonk, 1993.

17

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bottled drinking water, a solution for smalltowns without any access to drinking water,or where drinking water supply is subject tothe vagaries and leakages of old, deteriorateddistribution networks Lhat require majorcostly rehabilitation or replacement ¡illustra-

tion 7],

Increase the efficiency of irrigation.Throughout the region, only about a third ofwater applied in irrigation reaches the crops,and many of them have low value. Thetechnical efficiency of irrigation can heimproved. Drip irrigation, plastic houses andlining of canals to reduce evaporation andleakages can cut water use by 50 percent perhectare and more than double crop yields,showing that less can actually produce more.Meanwhile, agricultural value added can beincreased by a better selection of crops. Forexample, a single hectare of bananas requiresat least 20,000 cubic meters of water peryear — for a crop value of about 44 centsper cubic meter or waLer. Similarly, it takesup to 1,500 cubic meters of water to produceone ton of wheat, valued al less thanUS* 300 — a crop value of less than 20cents per cubic meter. By contrast, Jordanproduces irrigated flowers for local markets

at prices that allow the farmers to pay US* 1per cubic meter ol water.

Irrigation water is usiially priced at a fractionof its cost — little more than 2 cents a cubicmeter in the Jordan Valley — providing littleor no incentive for efficient use. Even smalltransfers of water out of agriculture canmake a big dillerence. A 15 percent reduc-tion in agricultural use in the region woulddouble the water available to households andindustry. In .Morocco, a 10 percent transferfrom irrigation would provide enough waterfor all additional domestic use for more thana decade. ^^ter-searce economies such asSingapore, Hong Kong and Malta havesuccessfully built their economies on trading,finance, and tourism. Gaza might followsuit and embark on a growth path centeredon manufacturing and services.

Reallocate water from low-value irrigation

by trading water rights. Farmers generallyhave entrenched rights to large volumes ofirrigation water, while nearby cities experi-ence water shortages. Shifting water fromagriculture is socially and politically sensitive,especially for rural communities, which seethe risks but not the potential benefits. In

7, Working with the Private Sector in Egypt

lhe Egyptian Government is taking steps toinvolve the private sector in providingdrinking water and in conservation. In avillage of 5,000 inhabitants with no drinkingwater, a private company has been con-tracted to purify water and sell it in bottles atUS$ 2.50 a cubic meter — covering capitaland operating costs. If the experiment issuccessful, purification plants will beestablished locally and the system will beextended to other villages.

Under a USAID-financed scheme, a NGOand a private Egyptian company areworking in three governorates — Cairo,Suez and Ismailia — to detect and repairleakages in houses and government build-ings, install water meters and carry outsocial assessments to draw lessons from thescheme. :

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some instances, informal markets navedeveloped — around Amman, Jordan, farmerstruck water to the cily — but these transac-tions are uncoordinated and inefficient.Farming communities across trie regionshould pay the real cost or water; they canthen he shown the opportunities ror growingwater-efficient crops and selling the watersaved in a formal water market. Shiftingwater from larms to cities is already done inmany parts of the world — for example, inChina, Mexico and Ine United States (the"water hanks" of Calilornia). But introduc-ing farmers to this "win-win" situation willrequire participatory approaches involvinglocal leaders in demonsLraLion schemes.

Reduce the volume of "missing" water.About hair the water pumped into municipaldistribution systems in MENA is unac-counted for. Compounding this loss are highoperating costs and low tariff-recovery ratesdue lo poor maintenance and weak manage-ment. Household devices often use waterwaslefully. The installation of efficient, low-cost alternatives — water saving lancets,low-volume Hush toilets, low-llow showerheads — can help improve the efficiency ofwater use. In all this, the key is for peopleand governments to understand water's value.

Control groundwater extraction. Sustain-able groundwater use musL be central to anynational water strategy. At present rates ofwithdrawal, the Sana'a hasin will he com-pletely dry within twelve years, unthinkablefor a nation's capital. The highland aquifersin Jordan and Yemen and the coastal aquiferof Gaza are also being depleted. A nationalstrategy should regulate, monitor, and controlgroundwater extraction, through pumpingtaxes, extraction fees, and withdrawal quotas.

Improving water quality is critical. Envi-ronmental safeguards to protect aquifers andkeep surface water clean are essential.Countries should prepare environmentalsanitation strategies, establish water qualitystandards, and rigorously enforce them.For example, most of the region's wastewatertreatment plants are inadequately designedand poorly operated, and untreated waste-water contaminates both land and water.To salvage the large sums invested andforestall further environment degradation,governments should embark on programs torehabilitate wastewater treatment plants, andprovide adequate incentives and training toensure proper operation and maintenance.

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8. Cost of Options for Enhancing Water Resources

Reducing end-user demand (recirculation, low water-usetechnologies) and leakage repair

Treatment of wastewater for irrigation

Desalination of brackish water

Development of marginal resources

Desalination of seawater

Source: World Bank Estimates, 1995.

Estimated Costs inUS Cents/Cubic Meter

5-5030-6045-7055 - 85

100-150

Reuse wastewater to augment supply and

reduce pollution. Disposing or untreatedwastewater is causing serious environmentalproblems, as well as polluting surraee and.groundwater. Treating and reusing waste-water can conserve resources and reduceresource pollution. Particularly in agriciil-ture, the reuse oí treated wasLewater anddrainage water can release rreshwater lorhigher-value use and reduce rertilizer eon-sumption. 1 he cost or treating wastewaterlor irrigation averages about 45 cents percubic meter, significantly less man develop-ing many alternative sources or supply

[Illustration S], Egypt recycles atout 3.4billion cubic meters or agricultural drainagewater and may double what it recycles by tneyear 2000. Tunisia is currently irrigating3,000 néctares with 18 million cubic metersor treated wastewater per year and hopes toincrease the wastewater-imgateo surlacetenrold by 2000. However, reuse is mostlyhaphazard and presents significant healthrisks, especially where untreated wastewater isused to irrigate vegetables as is tne case inalmost all MENA countries. To avoid thespread or disease, water should be suitablytreated ror the type or crop to be irrigated.

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SEEKING ALTERNATIVESOURCES OF WATER

New water supplies will have to be identi-

fied. Despite all conservation measures,demand will eventually outpace supply andnew sources of water will ne needed. Desali-nation is a technical option available tocountries wliose economies can near the cost.The most promising alternative supplyoptions are international, regional, and. localwater markets for translerring water fromsurplus to déficit areas using canals, pipe-lines, and tankers. Canals and pipelines aretechnically feasible but bear the risks at-tached to monopoly suppliers and politicalinterference. A more recent option, giantfloating hags for transporting water by sea, iscurrently under study. Estimated transportprices across the Mediterranean range rrom15 cents to 35 cents per cubic meter rorseveral million cubic meters per year. 1 heseprices, however, do not include the costs torterminals, inland transport, or purification.

Desalination was once confined to thewealthiest countries, hut costs have fallenfrom more than LIb$ 4 a cubic meter tobetween Ufa* 1 and Lib* 1.50 today, andlocating plants close to coastal populationcenters can keep distribution costs low.Meanwhile, rapidly escalating costs of newfreshwater are eroding the price dillerencebetween conventional and desalinationprojects, wim desalinaLion last becoming anoption for many countries. Malta shows howa country can reorient its economy, adjust towater shortages, and afford the cost ofdesalination [Illustration Q/.

9. Malta - Successful Desalination

For a country with a strong economy,desalination is a reasonable source ofadditional freshwater, especially if a largeproportion of the population is located aior near the sea. Thirty years ago, Maltahad a small, agriculture-based economywith a yearly per<apita income of onlyabout US$ 500. The country hasrenewable water resources of only 80cubic meters per capita per year. Fueledby its service-oriented economy, it hasraised incomes to US$ 6,000 per person.Recognizing the imperative of overcomingits water constraint, Malta started desali-nation in the 1960s and today supplies70 percent of its water needs, about85,000 out of 120,000 cubic meters perday from desalination, at a cost of US$1.20 per cubic meter (mostly financed byuser charges). Malta's economy canafford the cost of desalination, and watersupply has ceased to be a constraint foreconomic development.

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PROMOTING PARTNERSHIPSAT REGIONAL ANDINTERNATIONAL LEVELS

More than a third of MENA's renewablewater resources come rrom outside theregion, so MENA countries need waterstrategies thai look beyond their borders. Aswater scarcity becomes more acule, regionalperspectives and initiatives will become moreimportant, and national and internationalpartnerships will be key to successful regionalwater management. To harmonize policiesand coordinate development approaches,such partnerships will need to address jointplanning or river basins, sharing water data,and establishing effective networks ror theexchange or inrormation on water develop-ment and management. Early examples orsuch partnership arrangements include theroilowing :

• Regional and. river basin planning.To manage the water How between ripariancountries, the ongoing Jordan River Basinstudy — involving a partnership or GermanTechnical Assistance and the world Bank,supporting local teams or water experts — iscarrying out an in-depth analysis or theBasin with, a 50-year perspective. Similarly,the Jordan Rift Valley Development study,which emerged rrom the signing of the PeaceTreaty between Israel and Jordan, considerswater, now largely absent from the RiftValley, as the main element determining thescale of future economic development.

• Data collection ana exchange. Rased

on a concept developed, hy the World Meteo-rological Organization and the World Bank,the Mediterranean Hydrological Cycle Observ-

ing System (MED-IIYCOS) is in its firststage of regionwide hydrometeorological

monitoring and automated data collection,transmitted hy satellite to receiving stationsin participating countries. The system willprovide countries of the Mediterranean Basinwith a powerful tool for water planning andmanagement.

• Institutional networks. The Mediter-

ranean Water Agencies Network (MEDWAN)

is fostering technical assistance and exchangeof information between water agencies in theregion. Focusing on integrated waterresources management and the developmentof project proposals in the water sector, it wascreated jointly by the Mediterranean Envi-ronment Technical Assistance Program(METAP), which supports innovation inwater management, and the Marseille-hasedInstitut Méditerraiméeii de l'Eau.

• Innovative water developmentinitiatives. To shift to sustainable, partici-patory approaches employing low-costtechnologies — and to test new methodolo-gies and persuade people and decision-makersof their viahility — small demonstrations areneeded as precursors of larger projects. TheWorld Bank, in partnership with donors, willseek financing to provide grants for suchinnovations.

Donor Jjaison ana Partnerships. Toimplement the partnership and in response toMENA countries' revised national waterstrategies, donors will need to define newtechnical assistance and financing priorities.The creation of donor liaison groups could hea first step to help coordinate and. facilitatethe process of change in the countries. •

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III. THE MENA WATER PARTNERSHIP:A PLAN FOR ACTION

oncerted actions are necessary.Although past individual projectsand programs had some local

impact, the overriding result has beenfragmentation or effort at local ana govern-ment levels, as well as among donors. Thishas lea to duplication, ineffic.ie.nl use ofresources and overall frustration. To helpalleviate these problems, the ^jr ld Bankproposes to launch a MHNA Water Partner-ship that would energize and harmonizegovernment and donor efforts in the sector.The Partnership would define ana imple-ment a coordinated Plan of Action whichwould depend on people, sector institutions,governments, and donors, all workingtogether. This chapter suggests an outlinefor the Plan of Action which would operate

on Iwo levels. The first level would heimplemented in countries, among andbetween people, government and sectorinstitutions. People's perception that theirneeds are being heard and addressed, andtheir participation in the process, areessential for sustainable development.Cooperation among sector institutions iscrucial to reconcile competing demands forwater. The second level would be imple-mented internationally, between govern-ments and donors, and among donorsthemselves. A concerted approach betweendifferent donors and. individual governmentswill be essential for a coherent and effectiveapproach to water management. Thepartnership approach would be specified andagreed at a MENA v̂&ter Conference, where

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IO. World Bank Commitment to The MENA Water Partnership

Since 1960 the World Bank Group has lentUS$ 35 billion globally for water projects.About US$ 4.5 billion (13 percent) has goneto MENA countries, US$ 2.5 billion for waterand sewerage projects and US$ 2,0 billionfor irrigation. For the past five years Banklending for water projects in the MENAregion has averaged about US$ 220 milliona year.

In 1993, the Bank issued its Policy Paper onWater Resources Management, calling forthe integrated planning, financing andmanagement of water resources, followed byA Strategy for Managing Water in the MiddleEast & North Africa which related the newpolicy to MENA countries. The mainelements of this strategy are reflected in theMENA Water Partnership. Countriesthat develop effective strategies will besupported by the donor community, includingthe World Bank, which intends to double itslending for water. Future Bank wateroperations will assist MENA countries intheir implementation of the Partnership.

In addition, the World Bank will:

• Significantly strengthen its capacity tohelp countries develop their water plans, withparticular emphasis on river basin planning,creating water markets and using social andenvironmental assessments and participatoryapproaches to ensure the sustainability ofwater programs.

• Deploy water staff in the Region andmobilize local expertise to provide a fullrange of needed services.

• Develop with countries a joint program ofwater staff and management training, includ-ing a coordinated program of in-country andregional workshops.

• Promote regional awareness of waterprograms and issues, participate in donorliaison groups, and jointly sponsor a triennialMENA Water Conference.

• Seek, together with other donors,financing to provide grants for innovativeprojects and approaches.

national and international interesLs wouldconic together to harmonize their sectordevelopment plans and policies. The Ijuro-pean Union, oilier regional donors andseveral counlries have already expressedinterest in joining the partnership and inhelping to organize the Conference in 1997,

At the Stockholm Water Symposium inAugust 1995, the World Bank announcedthe creation or a Global Water Partnership(GWP) thai would bring together keyparticipants in integrated water resourcesmanagement, to pool their efforts lor moreeffective country-level programs. Buildingon the GWP, Lhe MENA Partnershipdelineates actions that countries ana Lneir

internaLional partners could take over lhenext five years. The Plan of Action needs tobe adapted to the institutional arrangementsand stage or water development in eaelicountry. For countries already gearing up forchange, starl-up actions can he completed bytne end. of 1997 wiLh medium-term goals tobe attained, by 2000. Hven for these coun-tries, successful completion of trie programmay Lake a decade. So starting now is vital.

The World Bank is a partner. Committedto this partnership, the Wind Bank willexpand its technical assistance, credits, andloan guarantees, and will work in closecollaboration with other donors in mobilizingresources for the sector [Jjlusiration 10]. The

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African Development Bank, the HuropeanInvestment Bank1, the European Union, ArabFunds, as well as a large number of bilateraldonors, nave made significant investments intrie water sector. These donors and .MKNA.countries are invited tu play a major wlc in

the proposed partnership, to seek sustainableand. coherent ways to avert the water crisis.

GOALS AND EXPECTEDRESULTS

The long-term goals of the MHNA WaterPartnership arc to:

• Improve the efficiency and allocation ofwater use, thus reducing the overall per-capitaextraction or raw water to sustainable levels.

• Make the water sector self-financing.

• Ensure consistent water supply to the

largest possible number of consumers.

INVESTMENT COSTS

Averting the water crisis in the MI3NAregion will not be possible through thetraditional supply-side approach. Instead, itwill require a réorientation and expansion ofinvestment, designed to rehabilitate and.extend distribution and transfer networks, tomodernise irrigation systems, to greatlyexpand waste-water collection and treatment,and to preserve water quality through solidwaste management and river and aquiferprotection.

Recent investment data are available for theseven countries in the region that have-actively borrowed from the World Bank for

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I I . Estimates of MENA RegionWater Investment Requirements, 1996 - 2005

Increasing Water Use Efficiency:(irrigation upgrading and réallocation networks)

Sanitation and Wastewater Treatment:(collection, treatment, disposal; target 80% service coverage)

Conservation and Water Supply:(rehabilitation and expansion of distribution networks; target 90%

service coverage)

Environmental Protection:(solid waste management, river clean-up, control of agricultural run-offs)

Estimated Ten-Year Total

Source: World Bank estimates, 1995.

US$ Billion

20 - 24

1 0 - 15

5 - 6

1 0 - 1 5

45-60

the water sector in the last three years —Algeria, Hgypt, Jordan, Lebanon, Morocco,Tunisia ana Yemen. These seven countrieshave together invested about US$ 1.5 billionannually in water development, or whichabout Ufo$ 1. billion came from officialdevelopment assistance. This represents onaverage 1 percent or their combined GDI"*.Other countries in the region have alsoinvested significantly in water.

In the next ten years, to raise regionwideservice coverage Irom S4 percent to 90percent lor water supply, rrom 1% percent to80 percent lor sewerage and sanitation, andto substantially increase water-use efficiencyand environmental protection, the M UNAregion's annual investments need to increaseto about US$ 4.5 to U S $ 0 billion [Illustra-

tion 11/. l he above seven countries andIran, Iraq, Syria and the West Bank anaGaza, have most or the unserved. people, andtherefore will need to invest the bulk or. thesehmds. This will ne a major endeavor ill

which several countries will need to invest upto 2 percent or their GDP. In addition,about 5 to 10 percent or asset values should,be generated, ror sustainable operation andmaintenance.

FINANCING PT.AN

An indicative regional financing plan [illus-tration 12] shows that the majority oí íutureinvestments — about 70 percent, comparedwith abo Lit 30 percent in the past — mustcome from governments, mostly throughwater-user charges. The international donorcommunity would contribute abolit 25percent oí the total investment cost, aboutone and a half times the current level, lheprivate sector, whose participation is currentlyalmost nil, is expected to have about a 5percent stake in the sector by 2005.

To afford the tremendous increase in annualinvestment requirements and Lo improve the

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low overall cosi-recovery rate oí 10 percent attest, governments need to drastically increasetrie sector's cash generation. J his can bedone through tariff increases, particularly forirrigation water, along with an active drive tomobilize private funding. World Bankguarantees can facilitate access to, or im-prove tlie terms of this financing [Illustration

13]. Such guarantees are being consideredtor two major bulk water supply systems,Jordan's Amman pipeline and Lebanon's

Awali-BeiruL conveyer. Both would expandwater supply in the two capital cities.

The large investment program will severelystrain current implementation capacity inMENA countries. The World Bank andother donors will help countries to expandtheir institutional and human resources basewith technical assistance, training programsand best practice seminars. •

12. Indicative 10-Year Financing Plan for Water Investments

Governments, mostly through user fees(70 percent)

D o n o r s ' • . . " ' ' • • • ...... . • . ,.:.,: ;

(25 percent)

Private sector financiers(5 percent)

Total

Source: World Bank estimates, 1995. ií

us$

30

13

2

Billion

- 42

- 15

- 3

45-60

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73. Guarantees Can Make Private Financing of Water Projects Possible

Countries that have an established trackrecord in regulating private infrastructureentities fairly can secure private financing forviable projects at reasonable terms. Forcountries that lack this experience, however,it is often difficult to attract private interest forthe first few projects needed to build marketconfidence. This difficulty is especiallypresent in the water sector, which is charac-terized by large investments with longpayback periods and extensive governmentregulation. The Bank's partial risk guaran-tees can help countries overcome thisobstacle.

The guarantees cover payments to commer-cial lenders in the case of defaults resultingfrom non-performance of contractualobligations undertaken by governments orpublic agencies. For water or wastewaterprojects, such obligations may include:

• maintaining an agreed-upon regulatoryframework, including tariff formulas;

• delivering inputs, such as electricitysupply to a pumping station;

• paying for outputs, such as bulk waterdelivered to a publicly-run distributioncompany;

• compensating for project delays orinterruptions caused by government actionsor political events;

• compensating for incremental costsimposed by changes, e.g. in environmentalregulations;

• central bank obligations to provideforeign exchange.

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M E N A W A T E R A C T I O N P L A N

Start-up Actions (by end 1997) Medium-Term Goals (by 2000)

A. INITIATIVES AT COUNTRY LEVEL

1. Mobilizing

PUBLIC AWARENESSPublic information campaigns implemented inschools and community centers. Willingness-to-pay assessed through local participation.

PARTICIPATIONA nationa water advisory council or equiva-lent body to include key representatives fromgovernment, water users and cultural leadersis established to provide a forum for two-waycommunication between government andlocal communities on issues includingconservation and water pricing. Developprocedures, including social assessments, forensuring user participation in water decision-making activities.

WATER USER ASSOCIATIONSStrategy for promoting and sustaining waterusers associations is prepared. Pilot schemesin operation.

2. Integrating Water 1

STRATEGY AND INSTITUTIONSNational water strategy prepared, includingwater law and measures to:

promote conservation, improve sectoralallocation, recover costs, prioritizeinvestments, investigate alternative sourcesof supply, and reform institutions.

A National Water Authority, responsible forwater resource policies and planning, isestablished.

National Water Authority prepares plan fordecentralization and commercialization ofservice management.

Country Efforts

Citizens accept and adopt new pricing andconservation measures.

User participation fully operational; stake-holders on boards of local service agencies.

Water user associations active and manag-ing irrigation schemes and small watersupply systems.

Resources Management

Strategy adopted:• users conserving water; ¡

• higher water prices and fees shift waterto high-value usage and recover costs;

• priority projects implemented;• alternative water sources identified;• integrated central and decentralized

service agencies operating effectively.

National Water Authority plans, coordinatesand monitors water resource allocation andmanagement.

Water service management decentralizedand operating on business principles bycorporate utilities.

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Start-up Actions (by end 1997) Medium-Term Goals (by 2000)

3. Using Scarce Water More Efficiently and Reducing Pollution

Plans prepared for;

DEMAND MANAGEMENT• recovering operation and maintenance

costs in urban and irrigation sectors.

IRRIGATION EFFICIENCY• reducing water use in irrigation while

maintaining or increasing agriculturalvalue added.

URBAN EFFICIENCY• reducing unaccounted-for water, includ-

ing rehabilitation of networks, watersaving by households and industry. Prior-ity programs and investments identified.

SUSTAINABLE GROUNDWATER USE• restricting groundwater exploitation to

sustainable levels, including regulation,monitoring, and enforcement.

Pilot scheme in operation.

IMPROVING WATER QUALITY• an environmental sanitation action plan is

prepared including wastewater treatment,river cleanup and groundwater protec-tion. Water quality standards established.

REUSE OF TREATED WASTEWATER• substituting treated wastewater for

freshwater in agriculture and industry.

Full O and M costs and 20 percent self-financing for all urban utilities are beingrecovered from water users.

Significant reduction in irrigation water use.

Unaccounted-for water significantly reduced;regional benchmark should become 30percent or less, instead of current 50percent.

Groundwater regulations enforced, ground-water overdrafting restricted to temporaryuse of small aquifiers and large-scale use ofmajor aquifiers, only after other solutions areshown to be less suitable.

wastewater treatment plant rehabilitationprogram being implemented;river and groundwater cleanup, focusingon "hotspots", being implemented;quality standards enforced.

At least half the country's wastewater beingreused for economic activities.

4. Seeking Alternative Sources of Water

NEW WATER SUPPLIES

• evaluate the need for supplementingexisting supplies with alternative re-sources, e.g. water imports anddesalination.

• identify alternative supply options includ-ing desalination and assess their feasibility.

Plans analyzed and costed. Legal contractsestablished. Detailed feasibility studiesprepared for key projects. Financingidentified.

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Startup Actions (by end 1997) Medium-Term Goals (by 2000)

B, INITIATIVES AT REGIONAL AND INTERNATIONAL LEVELS

5. Promoting Partnership at Regional and International Levels

REGIONAL INITIATIVESJordan Rift Valley Master Plan prepared;feasibility studies of priority projects com-pleted. Joint management structure agreed.

Jordan River Basin Study completed. Pro-posal for ¡oint water management programpresented by riparians.

DONOR LIAISONDonors, in conjunction with countries, jointlydefine new lending and technical assistancepriorities to complement MENA countries'revised national water strategies.

Donor water liaison group or possibleconsortium established to promote consis-tency of approach and effort.

MENA Water Conference in 1997 to bringtogether donors and MENA country waterrepresentatives to agree future directionsand investment priorities.

DATA AND INSTITUTIONAL NETWORKSMED-HYCOS system in place and operationalin at least five countries.

MEDWAN program implemented.

Priority projects financed and under construc-tion.

Feasibility study for priority projects underpreparation regionwide. Continued regionalcollaboration on development of plans and¡oint projects.

Process complete. Inventory of donor wateractivities established.

Donor-country partnership incorporated intocountries' water planning process.

Coordination mechanism fully operational.Liaison group meets annually to coordinateprograms.

Conference repeated in 2000 and trienniallythereafter,

MED-HYCOS system completed and opera-tional.

Regional technical assistance supportingpriority programs.

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CONCLUSION

MHNA's dwindling water resources arethreatening people's livelihoods and theregion's economic growth. Despite theextraordinary resilience or MUNA countriesin dealing with water scarcity, a crisis islooming. But the crisis is no I inevitable; itcan ne averted.

The ^ i t e r Action Plan proposes Key stepsfor tackling the problem. The Plan is aguide, not a blueprint. Each counLry isdifferent and should set its own targets.These will depend on its starting position andwill demand the full participation ol users,governments and donors.

The need for action is urgent. The agenda islarge and will require a concerted andsustained effort, if countries follow theAction Plan, the region can expect lo makeprogress within a decade toward its long-termgoal of water self-sufficiency. Measurabletargets of such progress could include:

• a reduction in the use of irrigation waterby about 10 percent and a simultaneousincrease in agricultural value, added;

• a regionwide reduction in water losses ofabout 40 percent;

• a 50 percent morcase in water availabilitytor domestic and industrial use;

• access to drinking water for about 90percent of the population and safe sanitationfor 80 percent.

If these goals are achieved, the MENA

region will he well on the path to averting the

water crisis and will be moving from water

scarcity to water security. •

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THE WORLD BANK

Headquarters1818 H Street:, NWWashington, DC 20433, USATelephone: 202-477-1234Facsimile: 202-477-6391

World Bank Resident Missions and Offices in the Middle East and North Africa

Egypt Saudi ArabiaWorld Trade Center P. O. Bo* 59001191 Corniclie El-Nil, lSlh floor Kiya.dk 11432Cairo

YemenP. O. Box 18152foana a

Telephone: 202-5744670Facsimile: 202-57^1076

Tunisiac/o UNDPi l p . Box 863Tarife'

Telephone: 2164-264-011Facsimile: 216-1-438-494

Telephone: 966- I.-465-9630 Telephone: 9Ó7-1-413-526Facsimile: 966-1-465-5842 Facsimile: 967-1-269-247

West Bank and GazaAl-RatnWest Bank

Telephone: 972-50-209-767.';/•;. Facsimile: 972-2-823-249

© The World Banky;