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.”
As part of a global initiative of 2030 WRG, Peru also interviewed its main stakeholders to gain insights into their appreciation and perceptions about the work that 2030 WRG has been undertaking in Peru. The results are encouraging:
- Awareness: 97% consider the role of the 2030WRG to improve governance and reduce the water gap excellent or good
- Collaborative and coordinated action: 52% acknowledge that 2030WRG has contributed to the improvement in water resources management.
- Leadership and mobilization: 50% believe that the internal mobilization has been successful.
- Interaction among members: 94% acknowledge having worked with counterparts with whom they did not previously work.
- Variations in involvement on specific issues: 45% increased their participation in governance actions.
- Results and impact: 71% state that 2030 WRG is very effective and 74% recognize socio-environmental and / or socio-economic results.
As pending challenges, it was suggested to involve new actors and / or define more specific roles for some of the existing working groups, as well as to communicate the actions now that concrete results are beginning to occur.
Since 2016, 2030 WRG Peru has been working closely with the National Water Authority (ANA) to look for the best possible alternatives to ensure that companies in the private sector measure their water footprint throughout the value chain. This now means that they are aware of their own water consumption and can take actions to reduce it. That is why they have created and launched the Blue Certificate, a form of recognition that encourages companies to meaesure their water footprint and additionally to have a Shared Value strategy with the community, which makes it a sustainable program.
The certificate has been very well received in the private sector and there are already about 10 companies in the process of being certified. One company has already obtained certification in July of this year. A communication strategy with private sector companies from the 2030 WRG working groups is being implemented, and an advocacy strategy and bilateral meetings for the presentation of the Blue Certificate and its benefits has been developed since the beginning of the year. A meeting with high-level representatives from the private sector is scheduled for November to engage even more companies with this innovative approach.
Mumbai, 13 October 2017 – The Government of Maharashtra has partnered with 2030 WRG to form the State’s first Water Multi-Stakeholder Platform for transformative solutions in water resources management. The first meeting of the MSP Steering Board for was convened under the chairmanship of the Chief Secretary, Government of Maharashtra, on 7 August 2017. Emphasizing the importance of a multi-stakeholder partnership approach, Sumit Mullick (IAS), Chief Secretary, indicated that “government can only solve the serious water problems we face with the active and enthusiastic participation of the private sector and civil society.”
At the Steering Board meeting, Bombay Chamber of Commerce and Industry, Indian Merchant’s Chamber and State Level Banker’s Committee actively represented the private sector, BAIF Development Research Foundation, Watershed Organisation Trust (WOTR), Indian Water Works Association and Indian Institute of Technology (IIT, Bombay), represented civil society and academia. Experts at the Maharashtra Water Resources Regulatory Authority, Department of Agriculture, Water Conservation and Water Resources of the Government of Maharashtra attended the meeting.
Acknowledging that Maharashtra faces a high risk to climate change and agriculture sector is the highest user of freshwater in the State withdrawing more than 80% of the water available, the Steering Board agreed to formalize the Rain-fed Agriculture Work Stream (anchored by the Agriculture Department) and the Command Area Water Productivity Work Stream (anchored by Water Resources Department), and appoint its multi-stakeholder members. The MSP emphasizes the importance to aligned with current state priority initiatives such as the Chief Minister’s flagship Jalayukt Shivar (focused on Water for All – drought-free state by 2019), the World Bank supported USD$480 million Project on Climate Resilient Agriculture (POCRA), the multi-stakeholder Maharashtra Cotton Water Platform promoting greater water use efficiency in the cotton sector, and the US$270 million Green Climate Fund submission Scaling Adaptation in Maharashtra Rain-fed Agriculture (SAMRA), supporting most vulnerable village clusters adopt water conservation measures leveraging private sector/market linkages. The latter two are existing 2030 WRG initiatives launched previously in partnership with the Maharashtra Department of Agriculture and other key stakeholders.
The Steering Board’s decision to develop these Work streams was informed by the Maharashtra Hydro-Economic Analysis of Opportunities to Improve Water Use in Agriculture Sector championed by 2030 WRG in 2015. The report addressed the question of how Maharashtra can continue to grow its State GDP in the agricultural sector 4% overall and 6% in rain-fed areas, while maintaining or even reducing the overall water footprint.
Given the rapid urbanization in the state of Maharashtra and legacy of industrial development, the Steering Board also consented to the immediate launch of a third Work stream for Urban Industrial Water Security, to be anchored by the Urban Development Department.
- Government Resolution issued by the Government of Maharashtra to form the Steering Board for MSP
- Maharashtra Hydro-Economic Analysis
Mexico City, October 11, 2017 – A core group of representative of industries (including Bimbo, Danone, Cuahtémoc Brewery, and Femsa Foundation), the Toluca Valley Business Council (representing more than 40 international and domestic industries with operations in the Toluca Valley), The Nature Conservancy (TNC), and the Lerma River Commission (a local government body in charge of supporting multi-stakeholder participation in water resources management processes) met to discuss the progress made so far in the design of the Toluca Water Security Initiative (TWSI). The TWSI has the objective of supporting the efforts of government and civil society in facing severe groundwater exploitation and pursuing long-term water security for the Toluca Metropolitan Region, one of the most important industrial regions in the country.
During the meeting, the 2030WRG representative presented some reflections on how to face the groundwater management challenges faced in the Toluca Metropolitan Region, suggesting that a central element of TWSI should be to establish the Groundwater Management Technical Committee or COTAS (Comité Técnico de Aguas Subterráneas). The COTAS are multi-stakeholder platforms that exist in the National Water Law as the institutions entrusted with enabling participatory groundwater management and producing a groundwater management plan. This was followed by a presentation of the CEVAT who has been working with CONAGUA and the Lerma River Commission to establish the Toluca Valley Aquifer’s COTAS. The plan is to launch the COTAS before the end of the year.
Finally, the representatives of the Lerma River Commission presented the Lerma River Basin Integrated Conservation and Restoration Strategy, a comprehensive strategy that seeks to systematically address the pervasive water pollution and environmental degradation challenges faced in the region. It was agreed by the core group of representatives in the meeting to fully endorsed the establishment of the COTAS and to find ways to jointly participate in the implementation of the River Basin Integrated Strategy.
We would like to draw your attention to the following 3 job posts that are currently advertised on the World Bank Group website. We are looking to recruit 3 more positions in Bangladesh, India and Kenya soon after. Kindly check back soon on the World Bank Group jobs website: http://ow.ly/cAru30fRa4e.
- 2030 WRG Program Manager
Location: International Hire
Closing Date: 17 October 2017
(see details here: http://ow.ly/JFOk30fRafd)
- Senior Water Resources Management Specialist Africa
Location: International Hire
Closing Date: 31 October 2017
(see details here: http://ow.ly/gIX530fRanq)
- Senior Water Resources Management Specialist Asia
Location: International Hire
Closing Date: 31 October 2017
(see details here: http://ow.ly/gIX530fRanq)
- Country Water Resources Management Specialist Bangladesh (to be announced soon)
Location: local recruitment
- Country Water Resources Management Specialist India (to be announced soon)
Location: local recruitment
- Country Water Resources Management Specialist Kenya (to be announced soon)
Location: local recruitment
About the 2030 Water Resources Group (2030 WRG)
The 2030 WRG is a unique global public-private partnership, with a mission to facilitate collective action on water between governments, the private sector and civil society, to help countries achieve water security by the year 2030. To meet its objectives, 2030 WRG acts as a multi-stakeholder platform for action, bringing governments, financial institutions, non-governmental organizations and companies together to work towards a water secure future.
Starting in January 1, 2018, the World Bank Water Global Practice will host the 2030 WRG, which has hereto been hosted by the International Finance Corporation of the World Bank Group. With the arrival of the Sustainable Development Goals in 2015, including Goal 6 for Water and Sanitation, a new strategy for the World Bank Global Water Practice has been developed in 2017. This strategy has a strong focus on scaling partnerships for action, including in water resource management. In June 2017, it was agreed by the Governing Council of the 2030 WRG to move 2030 WRG to the World Bank’s Global Water Practice for its third phase of activity 2018-2023.
As a central part of this transition, the World Bank is now seeking a Program Manager and two Senior Water Resources Management Specialists for Asia and Africa to take the partnership within the 2030 WRG team forward. The World Bank Group is committed to achieving diversity in race, gender, nationality, culture, and educational background. Individuals with disabilities are equally encouraged to apply.
Thank you kindly for your help in distributing these vacancies further within your relevant networks.
Dhaka – Understanding water scarcity in the Bangladesh context is deeply related to the estimation of the value of water in a particular season, region and use. A comprehensive but flexible framework for Water Valuation for industry, agriculture, municipalities and environmental would be an important element of making approval decisions on Water Resource projects, water allocation among competing uses and establishing water trading markets (a market mechanism to allocate water to most productive uses). Sound methodologies to valuing water can provide decision support tools to policy makers, help harmonize practices at the factory and farm levels, provide a rational basis to resolve conflicts and to set incentives. As Bangladesh lacks such instruments, the 2030 WRG Bangladesh Water MSP decided to prioritize design and adoption of Water Valuation methodologies.
2030 WRG developed preliminary recommendations (Working Paper) to implement Water Valuation in Bangladesh under the Water Governance and Sustainability work-stream, chaired by the Senior Secretary of Ministry of Water Resources which was subsequently endorsed by the high-level National Steering Board (NSB) chaired by the Cabinet Secretary. The Working Paper included the principles and factors that need to be considered for adopting Water Valuation methodologies for the different sectors such as industry or agriculture and international best practices in this area. The NSB recommended further work to arrive at a set of methodologies for Water Valuation for Bangladesh.
Internationally, Water Valuation is also a priority and has been designated as a major topic at the High-Level Panel on Water (HLPW) along with Climate Change, Water Data and Water Use Efficiency. The HLPW was formed with the support of the UN and World Bank to accelerate a change in the way governments, societies, and the private sector use and manage water. The HLPW has created the roadmap and principles for applying Water Valuation, including for economies, ecosystems, communities, individuals, political environments (politicians/lawmakers), cultures, and religions. Going forward, the HLPW will finalize the recommendations through an inclusive, consultation-driven process and highly encourages country level initiatives which conforms with the framework developed internationally at the HLPW.
Dhaka Water Conference
In July 2017, the government of Bangladesh invited 2030 WRG to make presentations on its Water Valuation work at the Dhaka Water Conference (including a High-Level Panel for Water Sherpa side-event). The events brought together the relevant government representatives, experts and scientific community from 28 countries from around the world. 2030 WRG’s presentations on Water Valuation and the subsequent discussions were widely appreciated by the participants and seen as an example of implementing recommendations from the HLPW. Interesting synergies between the work done on the global level by the HLPW and 2030 WRG’s work on water valuation in Bangladesh have emerged, these will feed into the 2030 WRG process.
Going forward, 2030 WRG will develop a Project Proposal including detailed Water Valuation methodologies and implementation guidelines and support a series of sectoral and national workshops, from October to December 2017 to solicit feedback into the White Paper. Once, the Proposal is adopted by the National Steering Board, the government of Bangladesh will be able to take measures to implement the methodologies.
Tanzania, October 4 2017 – The Pangani Basin Water Board, the Tanzania Horticultural Association, and the 2030 Water Resources Group signed an MoU in October, showing commitment to the coordination and implementation of the Kilimanjaro Water Stewardship Platform (KWSP).
The role of the Kilimanjaro Water Stewardship Platform is to:
- Promote the uptake of water stewardship standards;
- Increase water use efficiency;
- Develop and scale-up collaboration for improved catchment management; and
- Strengthen catchment governance.
The agreement initiates the establishment of a dialog framework for all stakeholders involved. The framework was developed following the need to address the region’s water stresses in the Pangani Basin in north west Tanzania to improve water security for people and economic prosperity.establishment of the KWSP gives the Ministry of Water and Irrigation, the Pangani Basin Water Board and other key water stakeholders a mechanism to develop, coordinate and scale up interventions and solutions to tackle the growing water resource challenges in the Basin.
Hanoi, September 26, 2017 – An advisory group meeting was held in Hanoi to discuss the completed report conducted by ARUP and ISET called ‘Vietnam: Hydro-Economic Framework for Assessing Water Sector Challenges’. The meeting also helped identify future work streams for 2030 WRG’s engagement in Vietnam.
Building on multi-stakeholder engagement, the report analyzed the water sector challenges in Vietnam by assessing the water demand-supply gap and water stress of Vietnam’s four key river basins. It then performed a high-level cost curve analysis to recommend cost-effective solutions to address these challenges. Deep dives were undertaken for four solutions, which were identified by the analysis and from stakeholder consultations to have the largest potential to address Vietnam’s identified water resource challenges.
- Improved irrigation scheduling for coffee in the Central Highlands
- Alternate Wet and Dry (AWD) rice management practices in Mekong
- Wastewater treatment and reuse in Ho Chi Minh City
- Wastewater treatment from industrial clusters around Hanoi
Vietnam’s economic growth and social transformation over the past decades has been impressive and has lifted large portions of the society out of poverty. Striving for economic growth, however, has put pressure on sustainable resource use and environmental protection. In 2016, MONRE’s Minister Tran Hong Ha, stated that ‘along with the process of economic development, the environment has reached the threshold of tolerance’.
The river basins responsible for generating approximately 80% of Vietnam’s GDP, namely, the Red Thai Binh, Mekong, SERC and Dong Nai river basins, are expected to face water stress or even severe water stress in the dry season by 2030. For SERC river basin it is even expected that over 28% of water demand will not be met in the dry season by 2030. An increase in hydropower plants, while seen as essential for Vietnam’s economic development, is expected to increase water allocation conflicts and water stress between hydropower generation and other water uses during the dry season.
Further, over-exploitation of Vietnam’s unmonitored groundwater resources, is already resulting in declining groundwater levels and localized water shortages in the dry season, saline intrusion in Vietnam’s most productive agricultural areas and land subsidence in it’s most important cities, namely Hanoi, Ho Chi Minh City and Da Nang. With only 10% of the municipal and industrial wastewater treated, Vietnam’s surface waters, especially around urban and industrial centers, face serious pollution issues, which worsens groundwater over-abstraction and poses serious public health issues. Climate change is expected to worsen Vietnam’s situation, with the recent El Nino event between 2014 and 2016, which caused the most severe drought Vietnam experienced in 90 years, providing a first impression for what Vietnam may has to prepare for.
To avoid crossing the ‘threshold of environmental tolerance’ and maintain sustainable socio-economic water security, immediate action is required.
Taking this very seriously, Members from the Government, Donors, Water User Associations, Research Institutions, NGOs, and Private Sector representatives engaged in an active and constructive discussion on the report findings as well as what actions are required for Vietnam. The discussions went beyond the deep dives presented in the study to include topics around incentives and regulatory reforms, river basin management, and policy incentives for private sector engagement.
It was agreed that an expansion of AWD for rice production has great potential and is of interest to Vietnam, however, guidance is required on how to do this. Further, coffee was identified as a priority crop for action, besides rice. The creation of incentives for sustainable water resource management was seen as crucial. For this, the participants saw potential in supporting the government in drafting decrees, circulars and decisions on guiding the implementation of the new irrigation law. Further, the potential of market-based instruments to create incentives was discussed. On wastewater treatment and reuse, guidance on drafting regulations and standards was seen as required to leverage the large scope of the currently unused and untreated wastewater. Focused and industry-specific assessments are required to implement industrial wastewater treatment – going beyond the policy and regulatory aspects. Support in developing the vision, mission and institutional arrangements of river basin councils was seen as critical and timely, as MONRE has just decided to aggregate all river basins to six overall units. Further, improvements in access to finance, e.g. PPP or green finance, were discussed to be relevant for water sector transformation.
A representative from Esquel, a textile high-end brand said industries would not only be interested in quantitative analysis but also qualitative assessment of water uses and their impacts. Within their own sub-sectors, private companies can initiate technical working groups and be ready to engage in multi-stakeholder platform. Communications and public awareness raising on effective water resources management are not to be neglected, a comment made by a participant from the Vietnam Water Supply Association.
The active stakeholder discussions will be continued to further define potential 2030 WRG work streams. Within the coming 3 months a broader national consultation workshop will be held in cooperation with the World Bank, which will present its upcoming and complementary report on Water Governance in Vietnam.
Mexico City, September 19 2017 – The Water Advisory Council (Consejo Consultivo del Agua) with the support of 2030 WRG convened a multi-stakeholder working group to endorse the launching of a Green Infrastructure Solutions in the Mexican Water Sector Initiative. The main objective of this initiative is to establish a multi-stakeholder dialogue platform to develop a common vision on how to strengthen the integration of water resources management and environmental policy; to evaluate the challenges and opportunities faced by green infrastructure solutions -as a mechanism to bridge the objectives of both policy sectors-; to establish synergies and enable collective action; to enable the implementation of green infrastructure solution projects and to contribute to policy reform.
Some of the members of this working group include: Conservation International (CI), Deutsche Gesellshaft für Internationale Zusammenarbeit (GIZ), the Geographic and Geomatic Research Centre of the UNAM, the Geology Institute of the UNAM, The Mexico City Water Fund, the Mexican Institute of Water Technology (IMTA), The Nature Conservancy (TNC), The World Resources Institute (WRI), the World Wild Fund for Nature (WWF), and the 100 Resilient Cities Initiative (Mexico City). It is expected for other private sector stakeholders to join the Initiative. Mr Eugenio Barrios, President of the Water and Environment Committee of the Water Advisory Council and Director for Policy and Development of WWF, heads the activities of the working group.
There are several activities foreseen to be undertaken in the context of the initiative, including the identification and socialization of best-practices -with focus on innovative institutional designs and financial mechanisms-; some institutional and policy analysis to assess the path for greater water and environmental policy integration and understand the viability of green infrastructure solutions in the Mexican water sector; the development of business cases and feasibility studies of prospective projects; and the production of a road map to mainstream green infrastructure solutions in the water sector.