The Asian Development Bank (ADB) expects to double its investments in the water sector in 2006-2010 to well over US$ 2 billion (EUR 1.7 billion) annually, making water a core business area of its operations. A recent study [1] co-published by the ADB estimates that annual investments of US$ 8 billion (EUR 6.6 billion) are required to meet Millennium Development Goal (MDG) targets for safe drinking water and sanitation in Asia by 2015.

ADB’s new Water Financing Program (WFP) will focus on investment, reform, and capacity development in three key areas: rural water services, urban water services, and river basin water management.

Expected achievements of the WFP are:

• safe drinking water and improved sanitation for about 200 million people
• improved irrigation and drainage services for 40 million people
• reduced flood risk for about 100 million people
• integrated water resources management introduced in 25 river basins
• significant increases in investment in China, India, Indonesia, Pakistan, and Viet Nam
• mobilisation of co-financing and investments from government clients (through counterpart financing), the private sector, and multilateral and bilateral partners
• higher levels of grant co-financing assistance.

[1] Asian Development Bank (2006). Asia water watch 2015 : are countries in Asia on track to meet target 10 of the Millennium Development Goals? Download here

Web site: ADB – Water Financing Program

Contact: Wouter Lincklaen Arriens, Lead Water Resources Specialist, ADB, water@adb.org ; K. E. Seetharam, Principal Water and Sanitation Specialist, ADB, water@adb.org

Source: ADB, 20 Mar 2006