ADB doubles lending to $4.2 billion for water security in Asia-Pacific’s developing countries

The information was released on Wednesday by Amy SP Leung, deputy director-general of the ADB’s department of sustainable development and climate |change.
Speaking at a media briefing on water and urban initiatives, Leung said the Asia-Pacific region was facing a critical situation with water security.
“Currently, most of the region is facing problems of ageing infrastructure, weak institutions, poor governance, [and] sub-optimal water management, which results in low productivity and very inefficient use of water resources in almost sectors including agriculture, industries and domestic uses,” she said.
Water demand in the region is estimated to go up by 55 per cent by 2050. The water shortage will get worse and 3.4 billion people would be living in water-stress areas, she stressed.
The World Economic Forum’s “Global Risk Report” last year assessed the emerging water |crisis as one of the three most serious risks that people will be facing in the next decades, she added.
Population growth and economic development will continue to be the driver of water demand. As a result, many countries in the region will end up with lower water per capita in the coming years.
The “Asian Water Development Outlook 2016” ranks countries in terms of water security, and based on the assessment, 29 of 48 countries in the Asia-Pacific region are water-insecure.
To help address the challenges, the ADB has focused on four areas: increasing water-use efficiency, water and climate, |integrated water-resource |management, and expanded sanitation and wastewater management.
The bank will also continue promoting innovative and transformative technology projects, for example, using remote-sensing technology for water accounting and productivity in irrigation system, and sludge de-watering and treatment technology so that treated wastewater can be |reused.
Of the $4.2 billion, $1.5 billion or 38 per cent of the loans will be provided to irrigation and drainage, while $1.4 billion or 35 per cent will be granted to water-supply, sanitation and waste-management projects. 
The rest will be used to finance flood management, water-resources management and watershed protection, as well |as hydropower generation projects.
Leung noted that climate finance within water projects was still very low as developing countries still identified what they need to do to adapt water projects to climate. 
“This is an area [where] we are expecting that we will provide more support.”
Last year, a small proportion of the ADB’s $2.4 billion in loans was used in climate-change resilience projects.
Another issue that needs better management is water leakage, said Vijay Padmanabhan, the ADB’s urban technical adviser. “If we can manage water loss from poorly maintained pipes, we can save half of that.”
The amount of water saved can be provided to 150 million people without building new facilities, the expert stressed.
Therefore, asset management and good governance are important to ensure water security for the region, he added.
Leung said: “Beginning this year, ADB is combining concessional lending and ordinary capital lending, so we are able to lend more, and we expect water projects would go up by 50 per cent in coming years.” 
ADB experts also urged more coordinated actions throughout the region and more cross-sector cooperation, as the water-security issue has become more complex and integrated.