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El. knyga: Global Water Funding: Innovation and efficiency as enablers for safe, secure and affordable supplies

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Is safe and sustainable water and sanitation for all an unaffordable pipedream? This book surveys the worldwide development of water and sewage services and the challenges in meeting Sustainable Development Goal 6 (SDG6) along with climate change, population growth and urbanisation. It explores the reasons why current SDG6 progress is failing, including weak policy implementation, staff shortages and inadequate funding, as well as the limited impact of aid funding. The author contends that despite a series of innovations, debt finance remains too small to address needs of developing economies. Therefore, instead of advocating new funding, this book proposes addressing the funding gap through technological innovation and more efficient management and procurement through a series of examples that have challenged traditional assumptions. 

After four decades of good intentions, SDG6 is making a difference in monitoring shortfalls for the first time, allowing for more effective responses. This book outlines the role of innovation in hardware development, procurement and installation, and discusses how network management and operations can most effectively address funding gaps. The potential for savings is considerable, if effectively replicated. New approaches are driving forward affordable resilience, including nature-based solutions such as upstream habitat enhancement to retain water and improve downstream water quality; the circular economy, including water, nutrient, energy and heat recovery from wastewater; and demand management. This book will be of great value to scholars, policy makers and practitioners interested in the global finance of sustainable water and sanitation.

1 The Case for Universal and Sustainable Access
1(42)
1.1 Introduction
1(1)
1.2 A Brief History of Water and Sewerage Infrastructure
2(5)
1.2.1 Bulk Water and Water Treatment
2(1)
1.2.2 Water Carriers and Household Connections
3(1)
1.2.3 Sanitation and Sewerage
4(2)
1.2.4 Sewage Treatment
6(1)
1.3 Where Should We Be? Water, Public Health, Development and Sustainability
7(4)
1.3.1 Water and the Burden of Disease and Lost Time
8(3)
1.4 The Impact of Poor Sanitation in South East Asia
11(2)
1.5 In Search of Lost Time
13(1)
1.6 The Human Right to Water
13(2)
1.7 The European Union and Common Standards
15(2)
1.8 Access to Safe Water and Sanitation
17(1)
1.9 International Initiatives `Progress on Drinking Water, Sanitation and Hygiene'
18(6)
1.9.1 The Sustainable Development Goals
18(5)
1.9.2 Access Can Depend on Seasons
23(1)
1.10 Potable or Safe Water Standards: The World Health Organization
24(2)
1.11 Water Availability
26(4)
1.11.1 Renewable Water Resources
26(1)
1.11.2 Water Stress and Scarcity
27(3)
1.12 The Impact of Climate Change
30(4)
1.12.1 Observed and Predicted Impacts of Climate Change on Water Management
31(3)
1.13 Conclusions
34(9)
References
34(9)
2 Where We Are
43(66)
2.1 Introduction
43(1)
2.2 Data and Data Gaps
44(2)
2.3 A Water and Sanitation Infrastructure Integrity Index
46(1)
2.4 Levels of Water Access
47(1)
2.5 Regional Overview: Europe--Developed
48(15)
2.5.1 Advanced Treatment: Nutrient Removal
54(5)
2.5.2 Comments on Countries
59(4)
2.6 Regional Overview: The Americas--Developed
63(5)
2.6.1 Canada
63(2)
2.6.2 Chile
65(1)
2.6.3 USA
65(3)
2.7 Regional Overview: South East, East Asia and Oceania--Developed
68(5)
2.7.1 Improvement of Asset Condition in Australia
70(1)
2.7.2 Japan's Recent Adoption of Sewerage
71(1)
2.7.3 Infrastructure Development in South Korea
71(2)
2.8 Regional Overview: Middle East and North Africa, Developed
73(2)
2.9 Regional Overview: Eastern Europe and Central Asia
75(3)
2.9.1 The Danube Countries: Outside the European Union
77(1)
2.10 Regional Overview: South Asia
78(6)
2.10.1 Bangladesh
79(1)
2.10.2 India
80(2)
2.10.3 Pakistan
82(2)
2.11 Regional Overview: South East, East Asia and Oceania--Developing
84(4)
2.11.1 China
86(1)
2.11.2 Indonesia
86(2)
2.11.3 Taiwan
88(1)
2.12 Regional Overview: The Americas--Developing
88(3)
2.12.1 Brazil
90(1)
2.12.2 Cuba
90(1)
2.13 Regional Overview: Middle East and North Africa
91(4)
2.13.1 Water Resources and Management in the Gulf States
91(3)
2.13.2 Egypt
94(1)
2.13.3 Saudi Arabia
95(1)
2.14 Regional Overview: Sub-Saharan Africa
95(4)
2.14.1 Mauritius
97(1)
2.14.2 Democratic Republic of Congo
97(1)
2.14.3 Uganda
97(1)
2.14.4 Kenya
98(1)
2.15 Conclusions
99(10)
References
100(9)
3 Where We Need to Be
109(36)
3.1 Introduction
109(1)
3.2 The Other Sustainable Developmental Goals 6 Targets
109(10)
3.2.1 Sewage Treatment
110(1)
3.2.2 Inland Water Quality
110(1)
3.2.3 Water Use Efficiency and Stress
111(4)
3.2.4 Integrated Water Resources Management
115(3)
3.2.5 Inland Water Quality Restoration
118(1)
3.2.6 Monitoring Water-Related Ecosystems
118(1)
3.3 Central Assumptions for 2030 and 2050
119(5)
3.3.1 Population Projections and Assumptions
120(1)
3.3.2 Population and Water Stress
120(1)
3.3.3 Water Access and Water Stress
121(1)
3.3.4 Household Size and Water Demand
122(1)
3.3.5 Connections and Populations
123(1)
3.3.6 The Impact of Rising Standards
123(1)
3.4 Forecasts for Needs by 2030 and 2050
124(18)
3.5 Conclusions
142(3)
References
142(3)
4 The Costs Involved
145(44)
4.1 Introduction
145(1)
4.2 Cost Assumptions
145(2)
4.2.1 The Timescale
146(1)
4.2.2 The Cost of Extending Water and Sewerage Services
146(1)
4.2.3 Defining the Sector
147(1)
4.3 Previous Cost Estimates
147(13)
4.3.1 The Water and Sanitation Millennium Development Goals
147(1)
4.3.2 Estimating the Millennium Development Goals
148(1)
4.3.3 The World Water Vision--Universal Water and Sanitation by 2025
148(2)
4.3.4 OECD Reviews
150(1)
4.3.5 Some Other Recent Surveys
151(2)
4.3.6 Global Water Intelligence--Global Water Market Surveys
153(3)
4.3.7 World Bank Analysis
156(4)
4.4 Per Capita Estimates
160(2)
4.4.1 Meeting the Millennium Development Goals: Basic Urban Services
160(2)
4.5 Rehabilitation and Renewal
162(2)
4.6 European Union Compliance: Advanced Asset Development
164(5)
4.6.1 Upgrading and Extending Services in England and Wales
165(1)
4.6.2 Complying with European Union Directives
166(3)
4.7 North America: US Environmental Protection Agency Needs Surveys
169(2)
4.8 Latin America
171(1)
4.9 Cost Assumptions
171(5)
4.9.1 Timing
171(1)
4.9.2 Central Cost Assumptions
172(1)
4.9.3 Quality of Input Data and Costs
173(3)
4.10 Cost Estimates
176(5)
4.11 Comparing the Costs of New Assets and Rehabilitation
181(1)
4.12 Conclusions--The Forecasts in Context
182(7)
References
184(5)
5 Funding Flows Today
189(36)
5.1 Introduction
189(1)
5.2 Tariffs
190(15)
5.2.1 Cost Recovery
190(1)
5.2.2 Cost Recovery Policy
190(1)
5.2.3 Cost Recovery in Practice
191(1)
5.2.4 Cost Recovery and Utility Finance Data
192(2)
5.2.5 How Far Can We Go? AfFordability and the Limits to Tariffs
194(2)
5.2.6 Water Tariffs and Household Incomes
196(1)
5.2.7 Tariff Limits in Theory
197(1)
5.2.8 Cost Recovery and Politics
198(1)
5.2.9 Consumer Choice: `Can't Pay, Won't Pay!'
198(1)
5.2.10 Cost and Confidence
199(1)
5.2.11 Service in Formal and Informal Settlements
199(2)
5.2.12 A Focus on Sub-Saharan Africa
201(3)
5.2.13 Tariff Structures
204(1)
5.3 Non-tariff Sources of Funding
205(5)
5.3.1 Official Development Assistance
205(2)
5.3.2 Official Development Assistance as a Part of Funding Flows
207(3)
5.4 Debt Finance
210(2)
5.4.1 Lending by Multilaterals, Development Banks and National Aid Agencies (Non-Official Development Assistance)
210(1)
5.4.2 Green Bonds and Water Infrastructure
210(1)
5.4.3 Debt Issuance
211(1)
5.5 Subsidies
212(2)
5.6 Indirect Financing
214(1)
5.7 Funding Flows for Private Sector Water Utilities
215(2)
5.8 Funding Flows
217(3)
5.9 A Caveat About Data Quality and Availability
220(1)
5.10 Conclusions
221(4)
References
222(3)
6 The Gap Between Aspirations and Realities
225(38)
6.1 Introduction
225(1)
6.2 What Happens Where There Is Insufficient Access?
225(6)
6.2.1 Alternatives to Piped Water
226(1)
6.2.2 Bottled Water
227(1)
6.2.3 Point of Use and Point of Entry
227(3)
6.2.4 Can Point of Use Represent the Best of Both Worlds?
230(1)
6.3 Tariffs and Cash Flow Generation
231(4)
6.3.1 T ariff Generation Today
231(1)
6.3.2 Tariffs and Economic Growth
232(1)
6.3.3 Tariffs: Affordability and the Willingness to Pay
233(2)
6.4 Gaps in Governance and Funding
235(10)
6.4.1 Plans and Their Implementation
236(4)
6.4.2 A Look at Africa's Funding Gap
240(1)
6.4.3 The Ability to Meet Targets
241(2)
6.4.4 O&M and Cost Recovery
243(2)
6.5 Assessing Operating Costs
245(13)
6.5.1 Tariffs and Funding Needs
249(1)
6.5.2 Tariff Generation Between 2015 and 2050
249(1)
6.5.3 Global Capital Spending Needs, 2015-50
249(7)
6.5.4 Can Other Funding Sources Cover Such Spending Gaps?
256(2)
6.6 Conclusions: An Unbreachable Gap?
258(5)
References
259(4)
7 Addressing Capital Costs
263(32)
7.1 Introduction
263(1)
7.2 Gold Plating and Incentivising Efficiency
264(7)
7.2.1 The Impact of Community Involvement
265(1)
7.2.2 Regulation and Incentivising Efficiency
266(1)
7.2.3 Incentive-Based Economic Regulation in England and Wales
267(2)
7.2.4 USA--Cost Savings Through Design-Build-Operate Contracts
269(1)
7.2.5 Lowering Costs in Supplying Villages in Punjab
270(1)
7.2.6 Rural Water Pumps in Sub-Saharan Africa
270(1)
7.3 Sanitation and Sewage Treatment
271(3)
7.3.1 Condominial Sanitation
272(1)
7.3.2 Localised Labour
273(1)
7.3.3 Distributed Sludge Management
274(1)
7.4 Cutting the Cost of Procurement
274(3)
7.4.1 Urban Sanitation
275(1)
7.4.2 Rural Sanitation
276(1)
7.5 Grinding Away at Corruption
277(5)
7.5.1 The Impact of Corruption in India and China
278(1)
7.5.2 Transparency International's `Corruption in the Water Sector' Report
279(1)
7.5.3 The Water Integrity Network's 2016 Report
279(1)
7.5.4 Aid-Related Outflows: A World Bank Study
279(1)
7.5.5 Some Examples of Progress
280(1)
7.5.6 Combatting Corruption
281(1)
7.6 `Nature-Based Solutions'
282(4)
7.7 Conclusions--The Scope for Capital Efficiency
286(9)
References
288(7)
8 Lowering Operating Costs
295(22)
8.1 Introduction
295(2)
8.2 Smart Operations
297(1)
8.3 The Potential Impact on Operating Spending
298(7)
8.3.1 Minimising Pumping Costs
298(2)
8.3.2 Storm Sewerage Overflow Detection and Response
300(1)
8.3.3 Monitoring for Sewer Overflows
300(1)
8.3.4 Smart Sewerage Capacity Optimisation
301(1)
8.3.5 Making the Extant Networks Deliver More
302(2)
8.3.6 Efficient Deployment of Meters and Monitors
304(1)
8.4 Specific Interventions for Developing Economies
305(6)
8.4.1 Monitoring, Mobile Money and Water
305(2)
8.4.2 Remote Pump Condition Monitoring
307(1)
8.4.3 Data Collection, Transmission and Interpretation
308(1)
8.4.4 Managing and Monitoring Losses
309(1)
8.4.5 Smart Sanitation in Senegal
309(1)
8.4.6 India--Performance-Based Purchasing Power Parity Contract for Water Services
310(1)
8.4.7 Making Such Innovations Commonplace
310(1)
8.5 Conclusions: The Scope for Savings
311(6)
References
313(4)
9 Demand Management and Resource Recovery
317(26)
9.1 Introduction
317(8)
9.1.1 Wasteful Acronyms: NRW and UFW
318(1)
9.1.2 The Cost of Non-revenue Water
319(2)
9.1.3 Lowering Non-revenue Water
321(1)
9.1.4 Pressure Management
322(1)
9.1.5 Leak Detection
323(1)
9.1.6 Non-revenue Water Management in Practice
324(1)
9.2 Demand Management
325(7)
9.2.1 Smart Water Metering and Demand Management
326(1)
9.2.2 The Greening of White Goods
327(2)
9.2.3 Demand Management in Action
329(1)
9.2.4 Responding to Drought in Melbourne
329(1)
9.2.5 Demand Management and the Water-Energy Nexus
330(1)
9.2.6 Improving Efficiency for Commercial Customers
331(1)
9.3 Resource Recovery
332(4)
9.3.1 Water Reuse
333(1)
9.3.2 The Economics of Water Reuse
333(1)
9.3.3 Phosphorous Recovery
334(1)
9.3.4 Sludge to Energy
334(1)
9.3.5 The Impact of Resource Recovery
335(1)
9.4 Conclusions
336(7)
References
337(6)
10 Innovation, Efficiency and Affordability
343(24)
10.1 Introduction
343(1)
10.2 Management Challenges
344(1)
10.3 The Private Sector
344(2)
10.4 Lowering the Cost of Project Capital
346(1)
10.5 Finance in Developing Economies
347(7)
10.5.1 Pooled Finance in the Philippines
349(1)
10.5.2 Revolving Credit in the Philippines
349(1)
10.5.3 Revolving Credit in Colombia
350(1)
10.5.4 Innovative Bond Structures in India
350(2)
10.5.5 Wastewater Recovery Revenues from Industrial Customers Supporting a Bond in South Africa
352(1)
10.5.6 Blended Funding Supported by Reclaimed Water Sales in Mexico
352(1)
10.5.7 Community-Level Support Blended with Commercial and Output-Based Aid Grants in Kenya
353(1)
10.5.8 Grant Aid and an Extant Contract's Cash Flows Support a Sewage Treatment Upgrade in Jordan
353(1)
10.5.9 Cambodia--Supporting Private Operators to Connect Poor Households
354(1)
10.6 Financial Efficiency in Developed Economies--Thames Tideway and Glas Cymru
354(1)
10.7 The Scope for Efficiency
355(9)
10.8 Conclusions
364(3)
References
365(2)
Conclusions 367(2)
Index 369
David Lloyd Owen runs Envisager, advising multilaterals, governments, companies and financiers about water regulation, economics and policy. He sits on the Advisory Board of the Pictet Water Fund and has previously authored Smart Water Technologies and Techniques: Data Capture and Analysis for Sustainable Water Management (2018).