Excellencies, distinguished guests, mayors, development partners, ladies and gentlemen: Good evening. I would like to acknowledge the presence today of Professor S. Jayakumar, Senior Minister and Coordinating Minister for National Security; His Royal Highness, Prince Willem-Alexander, Crown Prince of Orange, Netherlands; and Dr. Yaacob Ibrahim, Minister for the Environment and Water Resources. I appreciate very much the opportunity to return to Singapore International Water Week again this year.
Demand Despite the Downturn
Ladies and gentlemen, our world is a remarkably different place than it was when we gathered for this event last year. Many of us did not expect then-in scale or scope-the global financial crisis and economic downturn we find ourselves in. ADB, along with the rest of the development community, is concerned that national and municipal governments in Asia and the Pacific region will mistakenly react to this crisis by cutting or postponing infrastructure investments, particularly in the water and wastewater management sector. But this is actually the time for sustaining and increasing financing to fuel infrastructure investment to be the engine of growth once again.
The water sector is at the core of both economic growth and social development. Industrialization, education, health, tourism, the environment-all depend on clean and adequate water and sanitation, well-functioning infrastructure, and efficient services. The demand for this does not change in economic downturns. It is indeed fundamental to leading an acceptable quality of civic life for our people.
The Cost of Cutting Water Investments
In 2004, 635 million people in Asia the Pacific did not have access to safe drinking water. And 1.86 billion do not have access to improved sanitation. When many are yet to be covered, to cut or postpone spending in the sector now will prove even more costly in the future. And quite frankly, Asia cannot afford such an approach as many countries are already struggling to provide even the most basic services.
Climate change will impact the water sector most, due to far too much or far too little water. This calls for climate change adaptation in the planning, design and management of water resources. Stagnant investments in this sector may compromise our energy and food security, as well as our economies and environment - creating a significant new threat to both poverty reduction and economic growth.
ADB's Contributions
ADB is keeping water and wastewater investments on the front burner. During Singapore International Water Week last year, we launched our 7-point water agenda. It includes improving water governance, disaster management, climate change adaptation, sanitation, and knowledge networking through regional water knowledge hubs. We remain firmly committed to that agenda.
Our Water Financing Program 2006-2010 seeks to double investments in rural and urban water services, and basin water management, giving priority to disaster management and climate change adaptation. Projects approved to date under the program will provide more than 95.5 million people access to safe drinking water and improved sanitation; benefit 35 million people through flood management projects; serve 8 million people with more productive and efficient irrigation and drainage services, and introduce integrated water resources management in 24 river basins.
We continue building long-term partnerships with donors, clients, and stakeholders to increase cofinancing and leveraging of ADB's financial resources. Our active collaboration with external knowledge institutes, including water utilities networks, amply reflects our commitment to extend cooperation, knowledge sharing, information dissemination, and implementation of various water programmes and projects.
Conclusion: Opportunities in Downturns
Economic recessions also present opportunities, and the shortage of public funding for this critical sector presents business opportunities for private sector investments. To fill the funding gap, ADB has identified public-private partnerships as essential to enable its developing member countries to increase investments for urban infrastructure development.
The key to attracting investments is greater political will-to enforce wastewater standards on businesses and industries, and to set appropriate tariffs. This begins with clear policies, fair and transparent performance standards and regulations, and the empowerment of providers to perform their mandated function.
To improve water security in the region, innovative partnerships are critical, along with leadership and capacity building. Promoting the participation of governments, the private sector, development institutions, communities, NGO stakeholders and the media is a key element of this goal. Together we can surely build a more water-secure, future-secure Asia and Pacific region.
Considering the important knowledge building activities during the Singapore International Water Week, I am pleased to announce that ADB will be a Strategic Partner of Singapore International Water Week during 2010 - 2012. This will allow both of us to use this global platform effectively to discuss the future challenges in the water sector, share our experiences and provide enduring and practical solutions for easy and adequate access of clean water and improved sanitation for all our people in the region.
