The Mongolian Mining Journal: Interview with 2030 WRG Mongolia Representative Dorjsuren Dechinlkhundev

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NEWS SOURCE: The Mongolian Mining Journal 

Group studies the economics of water, and is worried

Mongolia has two major water consumption areas – Ulaanbaatar and the southern Gobi region. The first has population pressure, while the second is where mining and economic activity will become more and more intense. The 2030 Water Resources Group recently conducted a hydro-economic survey of the two areas, and its reports on them contain water consumption growth forecasts, potential water resource availability, and such questions of supply and demand.

Read the interview with 2030 WRG Mongolia Representative Dorjsuren Dechinlkhundev on the Mongolian Mining Journal:

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SWPN facilitates financial sector participation in mission to close South Africa’s US$ 2.3 billion annual water infrastructure gap

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SWPN MSP meeting_Oct17Johannesburg, October 12 2017 – Leading water, infrastructure and financial sector stakeholders met in Johannesburg for in-depth talks on funding models to improve South Africa’s water security. The third Annual Water Stewardship summit, kicked off with calls for the financial sector to look introspectively at ways to support efforts to close the water services infrastructure funding gap amounting to around US$ 2.3 billion per annum; in support of the coming National Water and Sanitation Master Plan.

The South Africa Department of Water and Sanitation is currently in the process of drafting the country’s new National Water and Sanitation Master Plan, with expected completion in March 2018.  The summit, organized by the Strategic Water Partners Network, the National Business Initiative and the Royal Danish Embassy, provided an often-neglected opportunity for public and private financiers to become involved in the initial planning and project conceptualization stage of the new National Water and Sanitation Master Plan. By involving such financiers early in the process, it is hoped that the master plan’s investment strategy would be designed in a way which is as beneficial to the country as it is attractive to investment.

Outlining the goals of the plan, Trevor Balzer, Deputy Director General: Strategic and Emergency projects at the Department of Water Sanitation, echoed sentiments made earlier this year by his Deputy Minister, Pamela Tshwete, who, at the first dialogue on the Water and Sanitation Master Plan on 19 May this year, called upon big businesses to assist in funding sustainable development projects. Balzer said: “Today’s event has brought us together at a critical time in South Africa’s water and sanitation planning. We expect to incorporate the feedback we received today from the financial community and other stakeholders to create a plan that effectively addresses the country’s needs.”

Catherine-Candice Koffman, Head of Infrastructure and Telecommunications Project Finance within Corporate and Investment Banking (CIB) one of the “big four” banks in South Africa – Nedbank, stated, “Getting involved at this stage of the planning process helps us from a corporate and investment banking perspective to better conceptualise how we can leverage our strategic, operational and sustainability goals to proceed in a way which will contribute to the future master plan. At Nedbank CIB we understand the intimate connectivity between leveraging natural resources and converting these into viable economic solutions to ensure the sustainability of our business and the socio-economic ecosystem in which we co-exist.”

One key recommendation, among a few others, for the Master Plan was that because Non-Revenue Water losses amount to about US$ 500 million annually, this was an area to consider a central government led programme that could make use of public and private investment to reduce municipal water and revenue losses. The SWPN is already testing some concepts of how this could be done.

Peru working groups advance with concrete solutions

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Peru transformative working groupsSince the beginning of 2017, the three large working groups that had been in operation evolved into six working committees that were more limited to the needs, problems and opportunities that were identified in the spaces for dialogue. The new committees today address the following issues:

1. Water Works for Taxes
2. Groundwater management
3. Hydrically Responsible Companies- The Blue Certificate
4. Water governance and dialogue processes
5. Promotion of public policies around water
6. Water stress and adaptation to climate change

The advantage of these committees with a total participation of more than 100 members, is that they are focused on finding concrete solutions with specific tasks for the different stakeholders. For example, the Water Works for Taxes mechanism is being implemented and the private sector participates and invests directly in works of the State to improve sanitation services, to expand potable water services and improve drinking water treatment plants, among others. Another group enables methodologies for the definition of tariff groundwater use, one focuses on the promotion of the water footprint through the certification of companies, among others. The 2030 WRG ACT methodology has allowed, step by step, to build robust and sustainable programs and policies for the sustainable water management in Peru.

National Multi-Sectoral Water Resources Management Forum Tanzania

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Tanzania_MSP_Oct517October 4, 2017 – The Ministry of Water and Irrigation in collaboration with the 2030 Water Resource Group Tanzania Partnership held a two-day multi-sectoral forum on 4 and 5 October to discuss Tanzania’s water management issues. The forum participants included representatives from the private sector, government and civil society organizations.

Professor Kitila Mkumbo, Permanent Secretary in the Ministry of Water and Irrigation, said in his opening remarks at the event: “People need to know that Tanzania is one of the countries said to have abundant water resources but are subject to competing demands. The use of such forums will help to get an agreed agenda to address competitions and thereby support sustainable growth. The country is endowed with relatively abundant freshwater sources, including rivers, sprTanzania_CreditAndersBerntellings, lakes, wetlands, and aquifers. However, these resources are unevenly distributed in time and space.”

The Director of Water Resources in the Ministry of Water and Irrigation, Mr. Hamza Sadiki said: “the average volume of renewable freshwater per capita per year has been declining, from 2,300 m cubic in 2002 to 1,952 m cubic in 2015. This figure is projected to further decline to 1,500 m cubic by 2025.” Mr Sadiki further warned that if water resources are not managed well, it will put the country within the water-stressed category, below 1,700 m cubic per capita, and business as usual will further put Tanzania in the water–scarce category.”

 

Transitioning for scale and impact

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Jyoti Shukla_Dominic Waughray_openingpiece

January 2018 will mark a new phase for 2030 WRG as the program moves from IFC to the World Bank Water Global Practice (Water GP). The strategic decision has been made by the 2030 WRG Governing Council to accommodate opportunities for larger scale impact as the program is set to expand its operations. 2030 WRG Steering Board Co-Chairs Dominic Waughray and Jyoti Shukla shared some thoughts on this development.

“2030 WRG challenges how stakeholders across all sectors engage and collaborate in the water space,” Dominic said. “It is a positive innovation that brings together the public and private sectors as well as civil society organizations (CSOs).”

Jyoti added: “The Water GP is very excited about this transition. We will be looking at approaches for each program and intervention to develop sustainably at scale. Both an opportunity and a challenge, we will build upon the wonderful work that has been done in the past 6 years, during which the program was given the opportunity to mature and grow at IFC, after its initial incubation period at the World Economic Forum.”

Vision and Leadership

Kenya 2030 WRG partners attending the 3GF

Kenya 2030 WRG partners attending the Global Green Growth Forum in Denmark, June 2016.

Dominic and Jyoti both acknowledged the 2030 WRG partners and thanked them for their vision, commitment, and leadership to embark on this innovative collaboration back when it was merely an idea. It has not been a journey void of challenges as the program engaged partners who would not normally have been at the same table constructively debating water issues and co-designing public-private solutions. “The result is the tremendous impact we are already making in the countries and the potential it has to grow at a global scale. With the transition to the Water GP and its extended network there is an opportunity to scale impact in existing country partnerships and reach out to many more countries and stakeholders,” Dominic added.

Jyoti elaborated: “Typically, the Water GP engages in global and regional partnerships with governments, CSOs and other related development partners. 2030 WRG adds tremendous value to the Practice as there is now an opportunity to bring in more private sector partners to the mix. The World Bank’s main instruments include lending support through IBRD and IDA, policy dialogue and providing technical assistance to governments on legal and regulatory frameworks. We are now creating the capacity to mobilize the expertise of the private sector, including commercial financing approaches that reach the poor and are environmentally and socially inclusive and sustainable. The transition now to the Water GP is an important next step for 2030 WRG. It will be a natural development to find synergies and collaboration with the largest concentration of the world’s water experts that work within the Water GP.”

The World Bank’s water portfolio currently covers 175 projects worth US$27 billion in lending and technical expertise. Around 70% of lending is for services such as water supply and sanitation and irrigation projects. Since 2014, lending for water resources management has also shown rapid growth, rising to 30% of the portfolio in 2017. In addition, projects with a water sector-related component managed by other World Bank global practices total approximately $10 billion, meaning the Bank’s total water-related investments are $37 billion.

Impact

2030 WRG Peru Mongolia Water and Mining Exchange. April, 2017

2030 WRG Peru Mongolia Water and Mining Exchange. April, 2017

“Country-level success has been demonstrated in many of our MSPs,” Dominic said. “Part of 2030 WRG’s impact and success is its ability to break through silos – when an important platform on water in a country is co-hosted by a minister and a private sector representative who is knowledgeable on the topic. When on that same platform civil society partners, academics, and a range of other actors are welcomed to openly discuss plans to grow the economy within the constraints that water has to offer. In Peru, South Africa, and Mongolia to name a few interventions, practical plans have emerged from those platforms. This model has emerged as a reliable and effective approach to integrate business with sustainable water resources management and can be replicated now in other countries.”

Jyoti concurred and added: “As water is increasingly becoming a scarce, economic and political commodity it is extremely important for all stakeholders to come together to discuss alternative uses of water, contribute to water policy and water resource management interventions. This balances out competing demands more successfully. When there is a common understanding and a willingness to understand each other’s perspectives, this will translate into policies and interventions that may change the way water resources are managed on the ground.”

Innovation

Dominic suggested the role of technology as one potential avenue to continue innovating within the MSPs, particularly when it comes to measuring and scaling impact “Perhaps we can draw in more ideas from science and technology innovators to help countries improve their water resources management and monitoring capabilities. This will help us find additional ways to iterate and refine our engagements, while ensuring that the lessons we learning along the way are incorporated into the decision-making processes. It is heartening to see attribution of our work in the water resource space and I am eager to learn how, jointly with the Water GP, 2030 WRG can do an even better job of demonstrating its impact in the long run.”

Message for partners

Reflection in water tank. Ghana. Photo: © Arne Hoel / World Bank

Reflection in water tank. Ghana. Photo: © Arne Hoel / World Bank

Jyoti and Dominic welcomed all new partners who recognize that collaboration in the MSP domain is key to addressing water resources challenges. They also acknowledged that given the program’s ambition to scale up, new partners and sources of funding will naturally be needed to achieve 2030 WRG’s continued success and maximize impact. “New stakeholders have the opportunity to join an initiative that, several years into its delivery, is now maturing into an extended network, enriched with tremendous sector expertise” Dominic said. “To our current network of partners of high-level government officials, companies and CSOs, I would like to encourage them to reach out to their peers and share their 2030 WRG experience, including advice and guidance to those who are embarking on this 2030 WRG model of collaboration. Peer-to-peer flow of knowledge is key.” Jyoti added: “It is really time for the water sector to move away from augmenting supply to putting the efficient management of water resources at the heart of the water agenda. Achieving the SDGs will be quite a daunting challenge and it requires all parties to work together towards this common goal.

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Dominic Waughray is Head of Public-Private Partnership, Member of the Executive Committee at the World Economic Forum in Geneva and Jyoti Shukla is Director of the Water Global Practice at the World Bank Group in Washington DC.

Both Dominic and Jyoti have expressed their heartfelt thanks to the Governing Council and Steering Board members for their dedication and unwavering support all these years. The program’s success and impact is reflected in their continued commitment.

 

 

Partner in the spotlight: interview with Phyllis Wakiaga, CEO, Kenya Association of Manufacturers

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Phyllis Wakiaga

Phyllis Wakiaga, CEO, Kenya Association of Manufacturers

In this quarterly edition of ‘Partner in the Spotlight’ we interviewed Phyllis Wakiaga, CEO of the Kenya Association of Manufacturers  (KAM) about her vision on Kenya’s water management challenges, incentives for the private sector to collaborate with governments and a new industrial water policy. 

KAM’s goals are to promote competitive and sustainable local manufacturing. How do you see the ongoing work jointly undertaken with 2030 WRG contributing to these goals?

“Water is becoming an increasingly paradoxical subject; mainly because it is a universal basic need without which there would be no life, and yet, it is fast becoming the foremost depleted and scarce resource in the world.

Collaboration with 2030 WRG has leveraged KAM’s work in industrial water management, particularly in the Nairobi sub catchment. It is through this collaboration with 2030 WRG, that led to the formation of the Kenya Industrial Water Alliance (KIWA) that brings industry stakeholders together to build a shared understanding of a water secure future.”

How does this work support the government’s Vision 2030 campaign’s main pillars?

“Water’s essential quality to our economy is clear, especially the aspects that drive growth such as industrialization. Economies depend either directly or indirectly on industries where the main input is water. The government is focused on industrialization as one of the vehicles to deliver Vision 2030. Therefore, we must start paying attention to the role of water as the main ingredient to a thriving and growing industry.

Industries and other businesses have realized that their individual use of water cannot be viewed in isolation as increased activity or demand in one sector alters the amount of input, in terms of water, energy or raw material, needed for another sector. Hence there is bound to be a burgeoning competition for water, which reduces the availability for other users. Through the KIWA initiative implement activities have greatly assisted industry. Manufacturers are now able to increase their sustainability to access water and manage efficiency and quality.”

With a predicted 30% gap between water supply and demand by the year 2030, what is the risk for the Kenyan economy and for its manufacturing sector if we are to conduct business as usual?

“The Manufacturing sector in Kenya is currently faced by a shortage in water supply , and is increasingly recognizing that the availability and quality of water poses a risk to their operations. KAM is supporting the manufacturers by providing subsidized water and waste water audits to identify areas of improvement at firm level while at the same time reducing their waste water flows and finding potential areas of either recycling, reusing or reducing the waste water. Promoting sustainable manufacturing will reduce the risk of increased water demand per capita, which translates to high water footprints for the manufacturing sector.”

What do you think are the main bottlenecks that Kenya needs to overcome to be able to close this gap between water demand and supply as much as possible? I.e. inefficiencies in water use.

“Kenya is one of the countries termed by the UN as ‘Chronically water scarce’. This is because we fall below the global standard benchmark for water adequacy set at 1,000 cubic meters, registering less than 647 cubic meters of water supply.

Increased populations in urban spaces bring along increased business activities, erode the natural resilience for water bodies, making them vulnerable to climate change and other environmental shocks. This diminishes presently available sources of fresh water whilst exacerbating the tension between the ever-growing demand for it and the dwindling supply. We therefore need to develop an industrial water policy to look at the provision, use, distribution, disposal and the reuse of water whilst upholding and replenishing the ecosystem.”

You advocate for an industrial water policy. Can you elaborate a bit on this initiative?

“We are advocating for an effective industrial water policy that will be the framework upon which water governance is formulated to ensure sustainability and accountability in the Country. An effective industrial water policy will be the framework upon which water governance is formulated to ensure sustainability, and will focus on solving key water challenges by integrating industrial processes towards improving water accessibility, while fostering constructive relations between Industry, Government and communities.”

What are the main incentives for the private sector to get involved in collaborating with the government on sustainable water management practices?

“Kenya’s economy suffered a setback during the severe drought that we experienced at the beginning of the year. The drought, which was declared a national disaster, caused a contraction in Agricultural activities and a deceleration in supply of electricity. It is important that we partner with government to ensure continuous supply of water for industry. Some of the major incentives that private sector can involve itself in to drive continuous supply include:

  • Economic instruments
  • Investment in water management technologies
  • Building capacity for private sector
  • Develop water use benchmarks
  • Promoting adoption of best practices & water efficient fixtures for demand side management”

What do you think the role and added value is for the broader 2030 WRG and the recently established Kenya Industrial water alliance (KIWA)?

“As mentioned above, The Kenya Industrial Water Alliance (KIWA) is an example of a platform that was set-up to bring industry stakeholders together to build a shared understanding of what a ‘water secure’ future entails. KIWA includes the input of diverse stakeholders who contribute not only towards finding solutions for the current issues but to deliberate on future water management challenges that would compromise our economic and social development goals. The initiative also acts as a tool to track and monitor industry use of water and to find ways to adjust their capacity to recycle waste water. These activities have increased sustainable access to water, improved both industrial water use efficiency and surface water quality management for manufacturers.”

What is the perception among industry partners of these platforms?

“As industry, we need a well-structured policy that considers all facets of human life – that is – political, social and economic. Aside from cementing and harmonizing existing water regulations, such a policy will aim to incentivize, self-regulation and re-use of water in industry.  It would be very beneficial to our country as it would present a well–articulated understanding of water governance, in order to maximize the economic and social welfare benefits that access to adequate water brings.”