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PRACTICAL SOLUTIONS TO WATER CHALLENGES Learning from the Spanish Experience June 14 – September 14, 2008 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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Page 1: Public Disclosure Authorized PRACTICALSOLUTIONS ...documents.worldbank.org/curated/en/... · PRACTICALSOLUTIONS TOWATERCHALLENGES Learningfromthe SpanishExperience June14–September14,2008

PRACTICAL SOLUTIONSTO WATER CHALLENGESLearning from theSpanish Experience

June 14 – September 14, 2008

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AcknowledgmentsThis document was prepared by Luis E. García and Milena Gaviria, under the direction of Abel Mejia, withco-authors Diego Rodriguez, Luis Ortega, Fernando Pizarro, Guillermo Donoso, N. Vijay Jagannathan, RitaCestti, and Meike van Ginneken. The authors also thank Marcus Thadeu Abicalil, Ventura Bengoechea,Guang Z. Chen, Manuel Contijoch, Salah Dargouth, IJsbrand De Jong, Asfaw Dingamo, Matar Fall, ErickFernandes, Mila Freire, Peter Kolsky, Danny M. Leipziger, Mouhamed Fadel Ndaw, Dilma Pena, ManuelSchiffler, Chongwu Sun, for their valuable contributions. Also acknowledge the WBI, the GDLN and theWater Tribune for providing the forum for this exchange of ideas. Special thanks to the Ministry of Economicsand Finance of Spain for the financial support that made this publication possible.

DisclaimerThe opinions expressed herein are those of the authors and do not necessarily represent the official positionof the World Bank Group or the Government of Spain. The data provided in the tables and figures are notofficial Bank or Government of Spain data. Permission is granted to reproduce this publication in whole orin part for noncommercial purposes only and with proper attribution to the authors, the Bank, and theGovernment of Spain.

© Expo Zaragoza 2008

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FOREWORD

The water challenges and issues faced by Spain areunique in Europe but are highly relevant to the rest ofthe world. Precipitation is highly variable in space andtime, with regions where it rains more than 2,000 mmper year, while others, such as Almeria, host one of thefew deserts in Europe. This climatic variability has beenovercome by building innovative water infrastructureand by establishing highly advanced and specializedHydrographic Confederations (ConfederacionesHidrográficas), which are the oldest river basinmanagement authorities in the world. An example ofsuch infrastructure works includes the 2,000-year-oldCornalvo reservoir, which is still in operation. As for theinstitutions, special mention should be made of theIrrigation Associations, some of which have existed formore than a thousand years, and the HydrographicConfederations, which are the oldest river basinmanagement authorities in the world.

The city of Zaragoza, located by the Ebro River, was anideal setting for Expo Zaragoza 2008, the internationalexhibition organized by the Government of Spain fromJune 14 through September 14, 2008. Like no other,this 700 million Euro event was fully dedicated to waterand sustainable development and was set to attractabout 6 million visitors, 20 percent of whom wereexpected to be from other countries. In one of its keycomponents, theWater Tribune, relevant world nationaland international water professionals from governments,academia, civil society, and the private sector met todiscuss sustainable initiatives and solutions to the manychallenges facing water management around the globe.

At the request of the Government of Spain, the WorldBank provided technical expert assistance for the policyand technical content of the Water Tribune andidentified key representative participants from clientcountries for two Technical Visits and 14 GlobalDevelopment Learning Network (GDLN) sessionsguided by the World Bank Institute that took placethroughout the three months of the World Water Expo.The inclusion of the two technical visits was consideredvery timely to learn from Spain’s rich water resourcesmanagement experience. In both technical visits,participants toured the Ebro Hydrographic Confederation(CHE), where one of the highlights was to learn aboutthe operation of the Automatic Hydrological InformationSystem that the CHE has put in place. The Canal deIsabel II in Madrid, one of the oldest utilities in the world,was also visited in one of the tours, providing theparticipants with an array of technological andorganizational insights; unlike many utilities, the Canalmanages the full water cycle. The second visit allowedthe group to see examples of conjunctive use ofdesalinated water with groundwater in Almeria insouthern Spain. Highlights of the visit were the watermetering and remote management systems in irrigatedareas under greenhouses, the organization of water userassociations, and the operation of a desalination plant.

The “Spanish Model” offers many worthwhileexperiences that are highly relevant and applicable tothe realities faced by many developing countries. Weare thus pleased to present this report, whichsummarizes relevant aspects of the water knowledgeshared by Spanish water experts and those from theBank’s client countries during the Water Tribune andthe technical visits.

Abel MejíaSector Manager

Water Anchor, World Bank

Eduardo MestreDirector, Water Tribune

Expo Zaragoza

María Jesús FernándezGeneral Director of International Financing

Ministry of Economy and Finance, Spain

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Contents

FOREWORD..............................................................................................................iii

EXECUTIVE SUMMARY........................................................................................8

I. INTRODUCTION.................................................................................................131.1 Water Resources Management in Spain .......................................131.2 Expo Zaragoza 2008 ............................................................................131.3 Bank Participation in Expo Zaragoza 2008..................................151.4 This Report ................................................................................................16

II. KEY ISSUES IN A COMMON CHALLENGE .........................................172.1 A Renewed Commitment to Improved

Water Resources Management...................................................17Water Resources and Development..........................................18Shared Waters ....................................................................................18Energy ...................................................................................................19Inter-basin Water Transfers ............................................................21

2.2 Water Supply and Sanitation...............................................................212.3 Water Quality and Environment .........................................................24

The Case of China ............................................................................24Latin America......................................................................................25

2.4 Food Security ...........................................................................................262.5 Technology Innovations.........................................................................292.6 Communication.......................................................................................31

III. LEARNING FROM THE SPANISH EXPERIENCE:THE TECHNICAL VISITS...............................................................................333.1 Adaptation to Changing Climatic Conditions

in the Ebro Basin ....................................................................................333.2 Water Use in Almería .............................................................................37

The Desalination Plant at Carboneras.......................................39The Feasibility of Using Desalinated Water ..............................39

3.3 Background to the Ebro Valley and Almaria Visits:Economic and Financial Considerations.......................................41

3.4 Canal de Isabel II:Comprehensive Water Cycle Management...................................43

IV. CONCLUSIONS AND LESSONS LEARNED......................................454.1 A Common Challenge ..........................................................................45

Water Supply and Sanitation.........................................................45Energy ...................................................................................................46Food Security .....................................................................................46Technology Innovation.....................................................................46

4.2 Highlights of the Spanish Experience .............................................46

REFERENCES .....................................................................................................48

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BOXESBox 2.1 Principles for a Sustainable

Water Resources Strategy .......................................................16Box 2.2 Water and the Uurban Poor ....................................................26Box 2.3 Waste Water Collection and Ttreatment in China:

Present and Future Challenges .............................................28Box 2.4 Irrigation around the Globe ......................................................31Box 2.5 Basic Functions of Agriculture for Development ............33Box 2.6 Governing Structure of the Irrigation

Associations in Spain.................................................................35Box 3.1 Spain’s Climate Change Mitigation and

Adaptation Measures .................................................................44

FIGURESFigure 2.1 Types of World Bank Water Projects.............................16Figure 2.2 Growth is Vital for Poverty Reduction............................17Figure 2.3 Per capita GDP Growth in Low-Income

Countries, 1995–2000 and 2000–2005 ....................17Figure 2.4 Public Expenditure in 11 African Countries................18Figure 2.5 The Challenge to Reach the MDGs, by Region........22Figure 2.6 Rural, Urban, and

World Population Growth, 1950–2030 ........................23Figure 2.7 The Changing Face of the Private Sector...................23Figure 2.8 Results of Water Reform in Senegal.............................24Figure 2.9 Results of Water Reform in Niger ..................................24Figure 2.10 Geographical Distribution of

Water Prices in Spain..........................................................26Figure 2.11 Population Living in Slums................................................27Figure 2.12 Integrated Urban Approach ..............................................27Figure 2.13 Subsector Investments in China.....................................28Figure 2.14 Irrigated Area, 1960–2000 ...............................................31Figure 2.15 Irrigation Management, by Region .................................32Figure 2.16 Ethiopia: Rainfall Variability, GDP Growth,

and Agricultural GDP Growth...........................................33Figure 2.17 Rates of Return on Investment by

Development of Water Infrastructure ............................34Figure 3.1 Almería Corridor ....................................................................47

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TABLESTable 2.1 Annual Investment Needs by Region, 2008–2015 ......18Table 2.2 Costs per m3 of Desalination and

Inter-basin Water Transfers......................................................37Table 2.3 Summary of Environmental Impacts of

Desalination and Inter-basin Water Transfers...................37Table 3.1 Percentage of Irrigation Methods Used in

the Ebro Basin and Almería...................................................53

CDA CD contains the publication Practical Solutions to Water Challenges:Learning from the Spanish Experience, plus the following additionalAnnexes:

ANNEX A Specially Commissioned PapersA.1 Water Management in Spain (L. Ortega and F. Pizarro)A.2 Influence of Climate Change on Droughts and Water

Scarcity in Dry Regions (L. Mata)A.3 Water, Economy, and Finance (A. Vives and P. Beato)A.4 Technical Supporting Data (L. Ortega)A.5 Economic and Financial Supporting Data (G. Donoso)

ANNEX B Bank and Other Expert InputB.1 Water Anchor Report about Bank Participation

in the Water ExpoB.2 Power Point Presentations Prepared for Water Tribune

ANNEX C Participant ListsC.1 Participants in the Water TribuneC.2 Participants in the Technical Visit July 14-19C.3 Participants in the Technical Visit July 20-25

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ABBREVIATIONSAEAS Spanish Water Supply and Sanitation Association

(Asociación Española de Abastecimiento de Agua y Saneamiento)AFR Africa Region, World BankANA National Water Agency (Agencia Nacional del Agua), BrazilBank The World BankBTOR Back to Office ReportCHE Ebro Hydrographic Confederation (Confederación Hidrográfica del Ebro)CH Hydrographic Confederations (Confederaciones Hidrográficas)CR Irrigation Association(Comunidades de Regantes)CUCN Nijar Users Community (Comunidad de Usuarios de Agua de la Comarca de Nijar)EAP East Asia and the Pacific Region, World BankECA Europe and Central Asia Region, World BankETW Energy, Transport and Water Department, World BankEU European UnionICA Integrated Water Quality Network (Red Integrada de Calidad del Agua)IDAM Sea Water Desalination Center (Instalación Desaladora de Agua de Mar)GDLN Global Development Learning NetworkGDP Gross Domestic ProductLAC Latin America and the Caribbean Region, World BankMDG Millennium Development GoalsMENA Middle East and North Africa Region, World BankOECD Organization for Economic Co-operation and DevelopmentPPP Public Private PartnershipsSAR South Asia Region, World BankSAT Agrarian Processing Company (Sociedad Agraria de Transformación)SEPRONA Navy Guard of the Rural Civil Guard (Guardia Naval de la Guardia Civil Rural)TTL Task Team Leader, World BankUN United NationsWB World BankWBI World Bank InstituteWRM Water Resources ManagementWUA Water Users Association

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Spain has a long and rich history of watermanagement and the “Spanish Model” offersmany worthwhile experiences. For centuries, forexample, it has coped with climatic variability bybuilding hydraulic infrastructures and participatoryinstitutions like the hydrographic confederations(Confederaciones Hidrográficas), which are theoldest river basin management authorities in theworld. That is why, when the Government of Spainrequested and provided financing for the Bank tofacilitate technical expert assistance to, andcollaborate with, the Water Tribune in ExpoZaragoza 2008, its was considered mutuallybeneficial, and the Bank gladly accepted.

To have an idea of the importance of the WaterTribune to the water community, one just has tolook at its impressive numbers: the Water Tribuneattracted around 65 specialists per day from allfields of knowledge; more than 350 lecturesfeatured more than 400 speakers. The Bank andits member client countries played an active rolethroughout the Water Tribune’s ten thematicweeks. More than 35 Bank staff and representa-tives of client countries participated as speakersand panelists in approximately 40 percent of theWater Tribune sessions. Among them were sevenhigh-level Bank officials who participated at theopening ceremony of theWater Tribune and at theopening ceremonies of thematic weeks one, three,four, five, six, seven, and nine. Among the panelistsfrom the Bank’s client countries were Ministersfrom Brazil, Colombia, Ethiopia, and Mexico, andwater authorities’ high-level officials from BurkinaFaso, Niger, and Senegal. A total of 84 videos ofthese sessions were produced and are availablefor consultation.1 Thirty-seven (37) countries in allWorld Bank regions and 25 GDLN centers aroundthe world were connected, bringing the totalnumber of participants to more than 1,700.

A Common Challenge

The Government of Spain, local organizers and theBank share a commitment to effective waterresources management as an important means tofoster sustainable socioeconomic advances andpoverty reduction in the developing world. Thispersistent challenge, whose key issues may vary inpriority in different parts of the world, was evidentthroughout the Water Tribune.

Water Resourcesand DevelopmentAlthough there was no specific session aboutintegrated approaches for water resourcesmanagement and development, the issue was partof presentations throughout the Water Tribune,which examined value of water, not only from thetraditional cultural point of view but also fromsocial, economic, and environmental perspectives.It was also made evident that investments in water-related projects, in a participatory manner and withdue consideration of social and environmentalvariables, provide multiple benefits and are driversof growth and poverty alleviation. They producehealth and education benefits, and environmentaland gender empowerment gains; they can helpbuild government track record of credibility andinclusiveness, and in general promote growth. Yetpublic investments in water infrastructure aredecreasing. The main challenge for institutions likethe World Bank and other donors is to bend thenegative trend in public expenditure and assurethat water supply service delivery, as well as otherwater-related productive services, remain high onthe development agenda.

Shared WatersThere are 263 rivers around the world that crossthe boundaries of two or more nations, and anuntold number of international groundwater

EXECUTIVE SUMMARY

1. Details of these sessions as well as the video clips can be found at http://www.e-waterexpo.net.

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aquifers. So, in many parts of the world, thepotential for conflict over water still exists, andparties involved have not yet embarked on the pathof assessing incentives for regional cooperationor have not started systematic dialogue forexploration of shared use of water as a uniqueresource. Participants agreed that thedevelopment of negotiations skills to preventconflict is urgently needed, as it is essential tolearn to communicate and negotiate with eachother to create win-win situations for the partiesinvolved, and called for institution building in thefield of “water diplomacy.” A key recommendationwas that countries that share rivers should aim toshare both costs and benefits. Emphasizing theperception of mutual benefits motivates dialoguebetween stakeholders, but negotiated agreementsneed to be robust, to allow for changes within theexisting political and economic contexts.

EnergyHydropower accounts for about 20 percent of theworld’s electricity supply and 88 percent of thesupply from non-biomass renewable resources.Scaling up hydropower is not limited by physical orengineering potential. However, hydropowerdevelopment is and will remain risky, and a decadeof learning about environmental and social riskshas shifted the definition of sustainablehydropower infrastructure. Hydropowerdevelopment faces many challenges to ensure thatprojects consider both water management andenergy issues, that the benefits are shared acrossa wide range of stakeholders, and that uncertaintyis dealt with by adaptive management andcontingency planning. There is no “right” answerfor these challenges—yet.

Water Supply and SanitationEven in developing nations with high percentagesof water supply coverage, the need to improvequality and reliability of the services is still present.However, as many noted, a low level of service“now” is much better than a higher level of service“tomorrow.” Financing remains a major worldwidechallenge. During the 1990s, there were high

hopes that needed increases in financing weregoing to come from the private sector bothdomestic and international. Recent trends,however, show that this has not been the case.Public investment in infrastructure also shows adecreasing trend, and donor financing has beenstable at best. During the second half of the lastdecade, however, a new trend of Public PrivatePartnerships (PPP) became evident, not only indeveloped but also in developing countries, wherethese cannot be considered as a failedproposition. Also, some stakeholders wereconcerned by the lack of economic incentives toregulate consumption and waste, while othersconcluded that water has not been valued bysociety and there is a need to reach and managethe harmony between water as a public and as aneconomic good.

Lessons learned from the African experienceindicate that successful PPPs have been part ofwell designed comprehensive subsector reforms,driven by basic concepts of transparency,accountability, autonomy, and incentives. Successoccurs when they take a customized approach tothe prevailing national context and the particularsituation of the subsector. Mixing public andprivate financing was viewed by the participantsas the most pragmatic approach to turn aroundwater utilities.

Urbanization was mentioned as one of the majorcauses of water pollution, but it was recognizedthat cities also play an important role indevelopment and urbanization is increasingly seenas an opportunity rather than a burden. Severalsuccessful examples of waste water treatmentprograms were presented, but it was highlightedthat, although the water pollution problem isglobal, we do not live in an “average” world andthere is a need to act and think locally, in a specificcontext.

Food SecurityEighty-five percent of the poor in sub-SaharanAfrica live in rural areas and depend largely on

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agriculture for their livelihoods. Agricultural growthis the key driver to poverty reduction andeconomic improvement and agriculture is themajor water user around the world. However, alack of strategic vision impedes the link that tiesagriculture and water development to povertyreduction and growth.

Irrigated areas have been increasing since 1961 inboth developing and developed countries, but thisincreased capacity varies across regions and there isconsiderable room for expansion as well as forimprovement and for intensification. However,agricultural watermanagement goes beyond irrigation.It also includes water management of rain-fedagriculture (which includes practices such as waterharvesting, flood and spate irrigation, water recessionagriculture, soil moisture conservation, and others). Incertain developing countries experiencing highpopulation growth, high population pressure inhighlands, high level of land degradation, and highinflation of food prices, and where development islinked to rain-fed agriculture, despite good economicperformance in recent years, important developmentchallenges persist.

It has been said that management of water foragriculture is “pro poor,” since 75 percent of theworld’s poor are rural and most are involved infarming. However, not all investments in agricultureproduce the same effect in all countries. Itdepends largely on the type of investment and thedegree of development the country has achieved.In less developed countries, for example, waterinfrastructure investments result in greater rates ofreturn than investments in management, but theconverse also applies in more developed countries.

Technology InnovationsIn the context of increasing scarcity pressures andevolving technology costs, desalination and waterreuse appear to be reaching the threshold aseconomically and environmentally sustainableoptions for a growing range of situationsworldwide. Desalination can increase the optionsfor irrigation and potable water supply in certain

parts of the world, as Spain’s experiencedemonstrates. Water reuse, on the other hand, canaugment water resources for non-potable orindirect potable uses, while also affordingenvironmental protection and deferring freshwaterdevelopment costs.

Highlights of theSpanish Experience

To learn about the Spanish experience in waterresources management in a more direct andparticipatory manner, the Bank organized twotechnical visits; Bank officials as well as key waterresources client stakeholders participated. Theexperiences of the technical visits highlighted arethe adaptation to changing climatic conditions inthe Ebro basin, the efficient use of water use inAlmería utilizing both groundwater and desalinatedwater, and the integrated urban water manage-ment system in the Madrid region.

Adaptation to Changing ClimaticConditions in the Ebro BasinThe Ebro basin is the largest in Spain. In this area,the agrarian sector (with strong irrigation support)remains important—the Valley of the Ebrogenerates around one fifth of total Spanishagrarian production—but its relative importancehas been reduced compared to the urban sectorand industrial development. The Ebro Hydro-graphic Confederation (CHE) manages theregion’s water resources.

The environmental characteristics of the Ebro riverbasin have had an important influence in theevolution of the system of water resource use thathistorically has followed a trajectory of adaptationto the prevailing conditions. From a historicalperspective, the establishment of irrigation in thecentral axis of the river valley represents an answerto the drought conditions and the necessity tosupply food to the population. Irrigation has beena dynamic sector that defined water policy duringthe last century, in terms of the construction ofinfrastructure by the public sector and an unlimited

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supply of water at a low price for farmers. Irrigationmodernization plans currently under way respondto the need for more technical farming methods toachieve further cost savings.

Water users, both direct and end users, have beenacquiring a greater degree of consciousness withrespect to the importance of water and itsdependence on climatic variability and change.Participation of direct users has been key in theoperation of the CHE, as is evident both in theirrepresentation in the community groupsassociated with the CHE and their involvement inthe public participation process for developing theEbro River’s future hydrologic plan. Although thepotential effects of climate change on availablewater resources in the CHE are yet to bedetermined, steps are being taken to extendsupply guarantees, both by increasing theregulation capacity and by improving watermanagement and allocation systems.

A commonly recognized effect of climate changeis the increase in the frequency of floods anddroughts, and the CHE has innovative responsesto both. The Automatic Hydrological InformationSystem provides information in real time onprecipitation and flows that is recorded at a seriesof points in the basin, and makes it possible toanticipate how a flood might be controlled so as todiminish potential damages. As for droughts, the2007 Special Drought Plan sets the strategies tobe followed in dry periods. The Plan establishes,among other things, the minimum reserves in thereservoirs to ensure household supply as a priorityuse; and sets the objectives for water savings orreduced consumption by the population.

AlmeríaThe region of Almería—the driest area in Europe—is home to agricultural production on more than30,000 hectares intensely farmed, dedicated tofruits and vegetables for export, based on thefollowing technological innovations: i) growingunder plastic sheets, mainly using the Almeríagreenhouse model; ii) drip irrigation and joint

management of water from different sources(surface, groundwater, rainwater, treatment, anddesalination); and iii) soil management using thetechnique of sanding (enarenado almeriense). In2005, Almería’s GDP was approximately 13,200Euros per hectare, while GDP in the Ebro regionis 7, 900 Euros per hectare.

Inadequate management of the aquifers lowered thepiezometric levels, with subsequent salt waterintrusion and deterioration of water quality. In orderto recover the aquifer and the water supply forirrigation, a series of complementary measures havebeen implemented, including use of desalinatedwater. Using desalinated water from theCarboneras plant, which started operations in 2005and uses reverse osmosis technology, is one of themajor agricultural features of the region Althoughlocal market conditions will determine the mostsuitable desalination technology for each zone, it isclear that the reduction in desalination costs per unitof production reached by reverse osmosis plantswill generate worldwide implementation of thismembrane system to produce desalinated water,mostly for water supply in scarce areas or in high-value tourism developments. In zones withstructural water deficit, as is the case in southeastSpain and the Mediterranean river basin in general,water desalination systems (particularly thosebased on reverse osmosis) appear to be atechnically and economically viable alternative. Thissituation is especially valid in zones that producehigh-value crops such as Almería.

The Spanish government has taken a bold step inits commitment to desalination as a means tobalance water budgets in the SpanishMediterranean, but other nations may need toproceed with caution before adopting the Spanishpolicy. Investment costs are high and may only besustainable if the added economic prosperity thiswater affords a region in the long term is sufficientto offset the project funding. A parallelcommitment to water demand managementthrough water tariffs is prudent to encouragerecovery of degraded natural water reserves.

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Canal de Isabel IICanal de Isabel II is one of the oldest utilities inthe world; unlike many others, it providescomprehensive water cycle management: watercollection, purification and quality surveillance,transport, distribution, wastewater purification,sanitation, and managed reuse of some of thepurified water for secondary supply uses.Responsible for water throughout the Madridregion, the Canal’s experiences provide manyinsights for the integrated urban watermanagement approach in urban areas. Anexpressed objective of the Canal is to recycle asmuch waste as possible.

Unlike other urban regions, the Comunidad deMadrid has the advantage of having all of its watersources, both surface and groundwater, within thelimits of its own jurisdiction, a feature that has beenwell used by the Canal since its beginning in 1851,when it was established to serve Madrid’spopulation of 220,000 inhabitants. It became apublic utility in 1977, and today the company servesalmost 6 million inhabitants, distributing a total of620 hm3 of water per year using two sources:surface waters from seven rivers in the Guadarramamountains (stored in 14 reservoirs with a totalcapacity of 946 hm3) and groundwater extractedfrom the main two aquifers in the Madrid region(using 81 facilities distributed in six well fields).

Practically 100 percent of the wastewater in theComunidad has secondary treatment, using 146wastewater treatment plants, some of which arebeing outfitted for tertiary treatment to producesome 40 hm3 per year of wastewater of adequatequality for re-use in the irrigation of 6,000 hectaresof parks and gardens that are fully automated andmanaged from a central control, sports facilities,and street cleaning.

Another feature is that the distribution networkmanaged by the Canal de Isabel II is linked in a ring,connecting the large canals running from two rivers,providing needed redundancy to the system. Toaddress recurrent drought situations, the Canal hasthe so-called “Drought Office,” which administersresources as efficiently as possible, based onexisting reserves. Also, due to an awareness-raisingcampaign, “Súmate al reto del Agua” (Join the waterchallenge), water consumption has decreaseddespite an increase in population. The pricingsystem ensures the sustainability and value of theservice by progressively adapting the purificationprice to costs.

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10© Expo Zaragoza 2008

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1.1 Water ResourcesManagement in Spain

Water resources in Spain have special climaticcharacteristics that have no comparison to thoseof any other country in Europe or in the developedworld; rather, they have similarities to conditionsfound in many developing countries. In effect,precipitation in Spain, where the annual averageis 515 mm, is highly variable in space and time,much more so than in its European neighbors.Accordingly, in some regions of the country it rainsmore than 2,000 mm per year, while Almería hostsone of the few deserts in Europe, with annualprecipitation of less than 250 mm. The country hasa marked rainy season from October to April, butduring the hot summer months, that is, the time ofgreatest water demand; it is common to go severalmonths in a row with no precipitation. Theirregularity is also evident in the periodicappearance of catastrophic droughts and floods.

For centuries, Spain has dealt with its climaticvariability by building water infrastructure such asthe 2,000-year-old Cornalvo reservoir, which is stillin operation, and establishing institutions suchirrigation associations (Comunidades deRegantes or CRs) and hydrographicconfederations (Confederaciones Hidrográficasor CHs). Some Comunidades de Regantes haveexisted for more than a thousand years, and theConfederaciones Hidrográficas, established in1926, are the oldest river basin managementauthorities in the world.

1.2 Expo Zaragoza 2008

Expo Zaragoza 2008 was an internationalexhibition organized by the Government of Spainin summer 2008 dedicated to water andsustainable development. This 700 million Euroevent—70 percent of which came from theGovernment of Spain, 15 percent from thegovernment of Aragon, and 15 percent from thecity of Zaragoza—was expected to attract 6 millionvisitors (about 20 percent of whom were expectedto be from other countries). One of its keycomponents was the Water Tribune, whose goalwas to stimulate reflection, debate, and a searchfor solutions related to water and sustainability.The most relevant national and international waterprofessionals from governments, academia, civilsociety, and the private sector met during the 93days of the Water Tribune to discuss sustainableinitiatives and solutions to the many challengesfacing water management in Spain and aroundthe world.

The Water Tribune was organized around tenthematic weeks covering a broad range of issues.

Week 1 was about Land Use Planning andAgriculture and was held from June 16 to June20. The thematic axes of focus for the week were:Land Management, Forestry, and IrrigatedAgriculture. Discussions centered on theorganization of the territory and its considerationfor water management in different complexcontexts derived from water’s three mainpurposes: transpiration of natural vegetation,

INTRODUCTION1.

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provision of nutrients and other food sources thatcontribute to support the productivity of coastalecosystems, and human consumption throughproducts yielded by irrigated land.

The theme for week 2 was Water and Cities:Local Governments, Governance, and UrbanDevelopment; it was held from June 25 through28. The thematic axes of focus for the week were:Local Governments and Governance, andDevelopment of Urban Surroundings. Severalcrucial topics were addressed, including waterefficiency in cities; city models; new technologies;urban landscape; the role of civil society;uncertainty and climate change; and the role of citynetworks. Discussions focused on assessing howto modify present urban trends to accommodatefor water management improvement, how todeeply modify urban landscapes, and how tointroduce sustainable improvements to the qualityof life of urbanites worldwide by modifyingprevailing terms of involvement among urbandwellers and their surrounding environment.

Week 3 dealt withWater for Life: Health, Qualityof Life, and Environment and was held from June30 through July 3. The thematic axes of focus forthe week were: Health, Water Quality, and Riversand Sustainability. Discussions on the relationshipbetween public health, water availability, and waterservices were also held. One day centered aroundpresentations on the degree of development andquality of life and how this relates to the qualityand sustainability of riparian environments andspecifically to the prevailing conditions on riversand other water bodies.

Water, a Unique Resource: Shared Water,Governance, Watersheds, Geopolitics andWaterwas discussed during week 4, held from July 7through 9. The thematic axes of focus were:Shared Waters: Governance and Governability;Water Geopolitics; and Basin and Aquifers:Planning and Management. Water as a uniqueresource is a feature mostly derived from itscapacity to be relevant or even vital to an important

of uses, sectors, social groups, behaviors,interests, and differing viewpoints, whilesimultaneously involving a complex and strongrelationship with policy making, politics and overallrelations among communities, subregions andcountries. Thus, topics such as governance andgeopolitics were part of the debate. This thematicweek included discussions and debate on criticalissues such as river basin water management vis-à-vis political boundaries, land management,subnational water management and land useplanning, among others topics.

Water Services for Supply and Sanitation wasdiscussed during week 5, from July 15 through18. The thematic axes of focus for the week were:Regulatory and Institutional Framework; Societyand Service Quality; and Efficiency, Management,and Development. Discussions and presentationsfocused on analyzing issues and problemsregarding the provision of water services andsanitation in urban and rural areas. Technology, aswell as the solutions provided by it, washighlighted. Furthermore, management andfinancial models were closely inspected andassessed. A technical visit was organized as partof the thematic week events with largeparticipation of the Bank and client countries.

Week 6was titled Climate Change and ExtremeEvents and was held from July 21 through 23. Thethematic axes of focus for the week were: ClimateChange, and Extreme Events. The week wasdevoted to discussing the main effects derivedfrom climate change and the main perspectives onmitigating them or adapting ways of life to climatechange consequences. Presentations were alsorelated to assessing the water cycle and wateravailability dynamics and possible modifications aswell as their impact on food production, economicgrowth, and demographic patterns. The sessionsconcentrated heavily on issues of severe droughtsand on providing policy and operationalrecommendations. Large participation of the Bankand client countries took place in this thematicweek (as in the previous week) as a technical visit

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was also organized as part of the thematic weekevents. In addition, the Bank commissioned abackground document on water scarcity andclimate change. This document was distributed atthe Water Tribune and is included as Annex A.2 inthe DVD.

Week 7 was about Water Economics andFinance and was held from July 28 throughAugust 1. The focus areas for the week wereWater Markets and Financial Solutions forDeveloping Countries, including the contributionof water infrastructure to growth and developmentand the relevance of regulation. The main objectiveof the week was to disseminate, analyze, andassess the implementation of water markets,including the Spanish case, as a tool to allocatewater effectively and to debate on the contributionof infrastructure, in particular water, to growth anddevelopment, the financial challenge, andregulatory requirements. The specially commiss-ioned background paper on water economics andfinancing for developing countries is included asAnnex A.3 in the DVD.

Week 8, held from August 4 through 6, was titledWater and Society: Education, Communication,and Culture. The thematic axes of focus for theweek were: Education, Communication, andCulture. The debate was concentrated onidentifying proactive paths to solve existing issuesand problems in the complex relationship of socialgroups with water resources. This thematic weekwas organized by the Water Tribune and the WBIand consisted of a series of GDLN sessions.

Water, Energy, and Sustainability was discussedduring week 9 from September 1 through 3. Thethematic axes of focus for the week were: Waterfor Energy and Energy for Water, and Non-Conventional Energy Sources. The week aimed atdeepening the debate to identify a commonagenda in water and energy in three basic areas:sustainability, technology, and policies, with anemphasis on development cooperation.

Week 10 was the final week of theWater Tribune;titled New Sources of Water: Reuse andDesalination, it was held from September 8through 10. The thematic axes of focus for theweek were: Reuse and Desalination. Currently,desalination appears to be a water source that isenvironmentally sustainable and attractive due toits gradual reduction of costs per unit of volume. Atthe same time, the options and processesavailable for the successful reuse of water aregrowing and multiplying. Discussions centered ontechnological advances in these areas and inimplementing financially and environmentallysustainable projects. Bank participation waslimited to a GDLN session.

TheWater Tribune attracted around 65 specialistsper day from all fields of knowledge. More than350 lectures featured more than 400 speakersand more than 1,700 experts.

1.3 Bank Participationin Expo Zaragoza 2008

The Government of Spain requested that theWorld Bank be involved and provided fundsthrough a trust fund it established in the WorldBank Institute (WBI) for three purposes:

Creation of a Virtual Pavilion. WBI implemented awater capacity building program delivered throughfourteen Global Development Learning Network(GDLN) sessions. The objective of the VirtualPavilion was to create a channel between the eventand different cities around the world by video-conference in order to bring the debate to theinternational stage, reaching a global audience andhaving a global exposure. The Virtual Paviliongathered around the table a large range of peopleincluding policymakers and representatives of privatesector, academics, international organizations, andcivil society.WBI organized 14 suchGDLN sessionsduring the duration ofWater Expo 2008; at each one,participants from three to five countries joined in real-time the debates and dialogues taking place at theWater Tribune auditorium.

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Technical Exchange. The World Bank WaterAnchor organized two technical visits duringthematic weeks 5 and 6 to learn from Spain’sexperience in water resource management. Thetechnical visits offered learning in four areas:

• Institutional: how the hydrographic confed-erations and irrigation associations operate

• Technical: state-of-the-art technologies such as:i) automated real-time information systems onthe quantity and quality of water resources andhow these information systems are used inflood- and drought-control efforts, ii) desalinationof sea water, and (ii) joint management forirrigation of surface water, groundwater, treatedwastewater, and desalinated water

• Agronomical and commercial: state-of-the-arttechnology for joint management of soil, plant,and climate, and for irrigation used to grow andmarket high-value crops

• Replicability: although Spain’s socioeconomicconditions may differ considerably from those ofdeveloping countries, Spain’s experiencenevertheless offers valuable lessons for manydeveloping countries because of the similarity inissues they face such as aridity, droughts,floods, etc

Expert Support. The Water Anchor facilitated theparticipation of Bank staff and representativesfrom client countries both at theWater Tribune andin the technical exchanges, and provided supportin the formulation of thematic documents.

As a result of all these efforts, the Bank and itsmember client countries had an active rolethroughout theWater Tribune’s ten thematic weeks.More than 35 Bank staff and representatives ofclient countries participated as speakers and

panelists in approximately 40 percent of the WaterTribune sessions. Among them were seven high-level Bank officials who participated at the openingceremony of the Water Tribune and at the openingceremonies of thematic weeks one, three, four, five,six, seven, and nine. Among the panelists from theBank’s client countries were ministers from Brazil,Colombia, Ethiopia, and Mexico, and waterauthorities’ high-level officials from Burkina Faso,Niger, and Senegal. A total of 84 videos of thesesessions were produced and are available forconsultation.2 Thirty-seven (37) countries in allWorld Bank regions and 25 GDLN centers aroundthe world were connected, bringing the totalnumber of participants to more than 1,700. Moreinformation can be found in Annex B of the DVD.

1.4 This Report

This report summarizes the most significant resultsof this collaborative effort between theGovernment of Spain and the Bank, looking at i)the contributions and discussions held during thewater capacity building program delivered throughthe GDLN and implemented by the WBI; ii) theexperiences discussed during the technical visits;and iii) the knowledge exchanges as a result of theparticipation of several Bank-supported speakersduring the Water Tribune. Drawing from thepresentations and discussions of the WaterTribune and the GDLN video sessions, Chapter IIhighlights the issues and common challenge Spainand many other countries share in moving towardbetter water resources management. Chapter IIIdiscusses the experiences of the two technicalvisits during weeks 5 and 6 of the Water Tribune.Chapter IV provides a concluding summary andkey lessons learned. The report includes a DVDwith full texts of specially commissioned thematicdocuments and the power point presentationsprepared by Bank staff and Bank-invitedparticipants to the Water Tribune.

2. Details of these sessions as well as the video clips can be found at http://www.e-waterexpo.net.

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This chapter highlights the common challenge theGovernment of Spain, local Expo organizers, andthe Bank have to continue their commitment toeffective water resources management as animportant means to foster sustainablesocioeconomic advancements and povertyreduction in the developing world, above andbeyond the emergence of new commonchallenges like climate variability and change. Itexamines key issues addressed at Water Tribuneand GDLN sessions by drawing on materialproduced for these sessions, video clips, andBack to Office Reports (BTORs) of Bank staff whoparticipated in Expo Zaragoza 2008 and in thetechnical visits.

National development is a complex process thatencompasses many themes, issues, and actors;water is one of them. But even if water is merelyone of several cross-cutting issues within thedevelopment process, it is crucial to properlydefine the role of water toward meeting nationalsocioeconomic goals in a sustainable manner. Itis also necessary to motivate decision makers toact in response to the impacts of climate changesof the future, while ensuring that that this does nothappen at the expense of remaining disinterestedin the many water problems of today. Thiscommitment was evident during the ten weeks ofthe Water Tribune.

The relationship between water and culture andhow societies value water was the focus of theeighth week of the Water Tribune, when fourGDLN-based sessions brought together

participants from 20 countries in Africa, Asia, andLatin America. The discussion focused on howwaste, pollution, and corruption in the water sectorcan be ameliorated through education andcommunication. Participants from Benin, BurkinaFaso, Costa Rica, Cote d’Ivoire, China, DominicanRepublic, Ecuador, Egypt, Ethiopia, India,Indonesia, Kenya, Nicaragua, Palestine, Panama,Senegal, Singapore, Tanzania, Tunisia, Uganda,and Yemen discussed the importance ofcommunicating and learning about the use ofwater. Societies are connected to water throughcustoms, often religious or spiritual, but they tendto be unaware of the importance of water for theirproductive activities. Even if there isconsciousness about water as a public good, itsrole as an economic good has often not beenvalued by society at large. Attitudes and behaviorsof societies need to change and become sensitiveand conscious of current values to exploreprioritized interventions and adopt sustainablelifestyles (GDLN 2008).

2.1 A Renewed Commitment toImproved Water ResourcesManagement

Participants in the culture discussion expressed anumber of concerns about water resourcesmanagement issues. Participants from Palestinestressed the importance of integrated waterresources management. The need for morestakeholder involvement in water resourcesmanagement was underlined by participants fromNicaragua and Ethiopia, including the

KEY ISSUES IN ACOMMON CHALLENGE2.

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empowerment of women to play a more decisiverole in water resources management decisions.Participants from Benin, Costa Rica, China, Egypt,India, and Panama focused on the need to makeeverybody aware of the value of water, not onlyfrom the traditional cultural point of view but alsofrom social, economic, and environmentalperspectives.

Although there was no specific session aboutintegrated approaches for water resourcesmanagement and development, the issue was partof presentations throughout the Water Tribune.See, for example, the proposed basic principlesunderlying a sustainable water resources strategyin Box 2.1. World Bank interventions in the watersector fall into one of four types, depending uponwhether they are broad or poverty targeted andwhether they are focused on resourcedevelopment and management or on the deliveryof services (Figure 2.1).

Box 2.1 Principles fora Sustainable WaterResources Strategy

• Improve management of the resource

• Expand and improve water supplyand sanitation services

• Develop more effective irrigationmodels

• Integrate urban environmentalmanagement and urban watermanagement

• Foster multisectoral and integratedapproaches for complexinfrastructure

• Facilitate global exchange ofexperiences and knowledge

Source: Abicalil 2008.

Figure 2.1 Types of World Bank Water Projects

NATURE OF INTERVENTION

BROAD POVERTY TARGETED

AFFECTINGWATER

ResourceDevelopment &Management

Type 1:Broad region-widewater resource interventions

Type 2:Targeted waterresource interventions

ServiceDelivery

Type 3:Breed impactsthrough water servicedelivery reforms

Type 4:Targeted improvedwater services

Source:Abicalil2008.

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Water Resources and Development

An important conclusion of the Water Tribune(week 3—Water for Life) was that clean water is adevelopment necessity. Water supply andsanitation are public as well as private goods,investment needs are large, and basic servicedelivery must be part of inclusive developmentpackages. Investments in water-related projects,in a participatory manner and with dueconsideration of social and environmentalvariables, provide multiple benefits and are driversof growth and poverty alleviation. They producehealth and education benefits, and environmentaland gender empowerment gains; they can helpbuild government track record of credibility andinclusiveness, and in general promote growth.

However, there is a caveat. This does not comewithout a price (Leipziger 2008). The relationshipbetween growth and poverty reduction has beenstressed but also the difficulties of promotinggrowth through aid development packages in lowincome countries. The World Bank analysis ofsome country case studies shows that the annualGDP per capita growth has an influence on theannual rate of poverty reduction (see Figure 2.2).However, an examination of growth in 46 low-income countries shows that, relative to the period1995–2000, growth accelerated in 28 countriesduring the period 2000–05 but decelerated in 18,including in three countries that receivedincreased aid (Figure 2.3).

Figure 2.2 Growth is Vital for Poverty Reduction

Figure 2.3 Per Capita GDP Growth in in Low-income Countries,1995-2000 and 2000-2005 (no. of countries)

Source: Leipziger 2008.

Source: World Bank staff calculations, from Leipziger 2008.

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Large investments are necessary, yet publicinvestments in infrastructure are decreasing. AWorld Bank study of 11 African countriesconcluded that while public expenditure in healthand education as percentage of GDP hasincreased slightly during the last two decades, theinvestment in infrastructure decreased from over4 percent to less than 2 percent of gross domesticproduct (Figure 2.4). Moreover, all around theglobe, investments in water supply and sanitationand wastewater treatment and disposal, althoughimportant, are not the only drivers for growth andwill be competing for available resources, asillustrated in Table 2.1. In Latin America, forexample, the water sector lags behind thetransport, telecommunications, and electricitysectors. These figures, however, depend on thelevel of development that each region had reached

by 2008. Not reflected in the table, but alsorelevant, is that water is also involved in developingthe electricity and agriculture sectors.

The main challenge for institutions like the WorldBank and other donors is to bend the negativetrend in public expenditure and assure that watersupply service delivery, as well as other water-related productive services, remain high on thedevelopment agenda (GDLN 2008a).

Shared Waters

Many countries around the world have opted forplanning and managing their water resourceswithin a river basin, catchment, and/or river basincontext. However, there are 263 rivers around theworld that cross the boundaries of two or more

Figure 2.4 Public Expenditure in 11 African Countries (% of GDP)

Source: Leipziger 2008.

Table 2.1 Annual Investment Needs by Region 2008-2015 at 2005 Prices (% of GDP)

Note: World Bank regions: EAP = East Asia and the Pacific; ECA = Europe and Central Asia; LAC = Latin Americaand the Caribbean; MENA = Middle East and North Africa; SAS = South Asia; SSA = Sub-Saharan Africa.Source: Leipziger 2008.

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nations, and an untold number of internationalgroundwater aquifers. So, in many parts of theworld, the potential for conflict still exists, andparties involved have not yet embarked on the pathof assessing incentives for regional cooperationor have not started systematic dialogue forexploration of shared use of water as a uniqueresource (GDLN 2008a).

At the GDLN and Water Tribune in Zaragozasessions, as well as in associated virtual sessions,participants shared their concerns and experiencein managing transboundary issues, stressing theneed for transforming potential sources of conflictinto opportunities for collaboration. Experts andkey players commented on the African context andformulated recommendations defining steps toidentify incentives to get countries andstakeholders together around the dialogue table,to assess the pros and cons of those incentives,and to communicate and negotiate with each otherabout win-win solutions. Many collaborative effortshave shown that conflict and lack of cooperativemanagement would be expensive, disruptive, andwould interfere with efforts to relieve humansuffering, reduce environmental degradation, andachieve economic growth (GDLN 2008a).

Regional and national organizations have been andneed to be established to build trust amongcountries and their leaders, to share knowledgeand information, and to plan and implementprojects sharing benefits and costs. Participantsagreed that the development of negotiations skillsto prevent conflict is urgently needed, as it isessential to learn to communicate and negotiatewith each other to create win-win situations for theparties involved, and called for institution buildingin the field of “water diplomacy.” A keyrecommendation of the Water Tribune session onShared Waters, Governance, Watersheds,Geopolitics, and Water was that countries thatshare rivers should aim to share both costs andbenefits. Emphasizing the perception of mutualbenefits motivates dialogue between stakeholders,but negotiated agreements need to be robust, to

allow for changes in political and economiccontexts. An example of such a robust approachcan be found in Senegal; the Senegal RiverCommission, set up by Mali, Mauritania, andSenegal, develops jointly owned and operatedinfrastructure to provide energy, irrigation, andnavigation benefits through a benefit-sharingmechanism (GDLN 2008a).

The Nile River Basin Initiative, launched in 1991,provides another example of states turning apotential source of conflict into a collaborativeenterprise. The Nile Basin is characterized by waterscarcity, poverty, a long history of dispute andinsecurity, and rapidly growing populations anddemand for water. A partnership initiated and led bythe ten riparian states of the Nile River—Burundi,Democratic Republic of the Congo, Egypt, Ethiopia,Eritrea, Kenya, Rwanda, Sudan, Tanzania, andUganda—the Nile River Basin Initiative has broughtthese States together in an effort to share costs andbenefits. Their objective is to achieve sustainablesocioeconomic development through the equitableutilization of, and benefit from, the common NileBasin water resources. The Strategic ActionProgram adopted by the Nile riparian countriesprovides the means for translating this shared visioninto concrete activities through a two-fold,complementary approach: i) lay the groundwork forcooperative action through a regional program tobuild confidence and capacity throughout the basin(the Shared Vision Program); and ii) pursue,simultaneously, cooperative developmentopportunities to realize physical investments andtangible results through sub-basin activities(subsidiary action programs) in the Eastern Nile andthe Nile Equatorial Lakes regions (GDLN 2008a).

Energy

Hydropower accounts for about 20 percent of theworld’s electricity supply and 88 percent of thesupply from (non-biomass) renewable resources.Scaling up hydropower is not limited by physical orengineering potential. Organisation for EconomicCo-operation and Development (OECD) countries

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have exploited over 70 percent of economicallyfeasible potential compared to 23 percent indeveloping countries. Indeed, 91 percent ofunexploited economically feasible potentialworldwide is located in developing countries, withone quarter in China. The value of hydroinfrastructure in development and poverty alleviationis changing. In addition to its role in bringingelectricity to the 2 billion people who lack access,hydropower offers a hedge against rising energyprices and can play an important role in energytrade and regional power pools. The imperatives ofwater management are also repositioning hydroinfrastructure with a growing appreciation of the linkbetween hydrological variability and economicgrowth, especially in the 263 international riverbasins in the world. Hydropower infrastructureplays two critical roles in meeting the climatechange challenge: i) renewable hydro energy offersan alternative to fossil fuels; and ii) water resourcesinfrastructure can help countries adapt to changesin hydrology (GDLN 2008b).

A decade of learning about environmental andsocial risks has shifted the definition of sustainablehydropower infrastructure. The World Commissionon Dams, follow-up work of the United Nations (UN)Dams and Development Program, sustainabilityinitiatives of both industry and non-industryorganizations, and requirements of financinginstitutions have redefined the standards forenvironmental and social management. However,hydropower is and will remain risky. Implementinggood practices is challenged by lack of capacity inimplementing new standards and inherentcomplexities, and the multi-sector, multi-objectivenature of hydropower projects further emphasizesthe importance of a strong risk managementapproach to the sector (GDLN 2008b).

A GDLN session on Water, Energy, andSustainability explored key themes in moving tosustainable hydropower: i) strategic planning toensure projects are appropriate and to considerboth water management and energy issues; ii)sharing of benefits across a wide range of

stakeholders; and iii) managing for uncertaintythrough adaptive management and contingencyplanning. There is no “right” answer for thesechallenges—yet (GDLN 2008c).

Learning from theSpanish Experience:Water Management

Water Resources in Spain

The natural water availability to cover water needsis about 110,116 hm3/year. If there were nostreamflow regulation infrastructure (whichamounts to a real storage capacity of 56,800hm3), only 7,220 hm3/year could be used.Groundwater resources are used to supply 70percent of the urban centers and one third of theirrigated land (approximately one million hectares).

Spain’s total land area is 50.5million hectares (Mha),almost half of which is valuable agricultural area, ofwhich 22.3 Mha (44 percent) is cropland forseasonal agriculture and 3.7 Mha (7 percent) isirrigated cropland. A total population of 45.2 millionlives in this territory, to which the almost 50 milliontourists who visit Spain every year must be added.Within the electricity sector, hydropower constitutesthe leading source of clean and renewable energyand supplies the peak hours of the energy curve,allowing for continuous service. Hydropowerrepresents 10 to 15 percent of electricity output,which accounts for about 3 percent of the end-useenergy consumed in Spain. Almost 68 percent ofthe total demand comes from irrigation; industry andindustrial cooling account for approximately 19percent, and domestic water use the remaining 13percent (Ortega and Pizarro 2008).

The Spanish Model ofWater Resources Management

The “Spanish model” of WRM is the result of alengthy evolution that began in 1926 with thecreation of the Confederaciones Hidrográficas. A

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first characteristic to note in this model is theseparation between multi-sector and individualsector uses of water (such as municipal watersupply, irrigation, hydroelectricity, industrial use,mining use, recreational use, etc). The CHs are incharge of multi-sector water issues, while eachsector has created its own institutions for managingthe sector uses of water, such as the farmers whoare members of the irrigation associations. Anothercharacteristic is that water is now seen as aresource that needs to be protected and managedand not merely used. The present Water Law (Leyde Aguas) assigns water resources managementto the general state administration, under a nationalauthority, the Ministry of Environment and Rural andMarine Environments, through the General Bureauof Water (Dirección General del Agua) and theCHs, as basin authorities. The General Bureau forWater is responsible, among other things, for theelaboration of the National Water Resources Plan(Plan Hidrológico Nacional).

For WRM, Spain is divided into thirteenManagement River Basins (Cuencas de Gestión,or CGs), each bringing together several naturalriver basins for management rationalization andreducing costs, which are managed following theprinciple of the integrality of each natural basin.Each CG has a CH as the basin’s water authority,which undertakes a decentralized, participatory,and comprehensive approach to management ofthe basin based on the principles of sustainabilityand efficiency. The functions of the CHs includeassigning water concessions and other wateradministration activities; study, design,construction, and operation of the multi-sectorwater use infrastructure; hydrologic planning; andsetting regulatory fees and tariffs based on criteriaof rational water use, equitable distribution ofresponsibilities and benefits among different waterusers, and the degree of self-financing of theservices. The CHs are public law entities with theirown legal persona, distinct from that of the Stateand with full functional autonomy, but positionedunder the Ministry of Environment and Rural andMarine Environments for administrative purposes.

Mitigation and Adaptationto Climate Change

Spain, given its geographical position, is especiallyvulnerable to climate change and its impact onwater resources is being studied by the WaterResources Studies Center (Centro de EstudiosHidrológicos) of the General Bureau of Water ofthe Ministry of Environment and Rural and MarineEnvironments. Water resources are very sensitiveto increases in temperature and, in Spain,decreases in precipitation. Most critical are thesemiarid areas, where future water input may behalf of its current volumes according to someestimates. This situation suggests that the climatechange variable should be factored into generaland sector water policies to plan and implementappropriate adaptation and mitigation measures.

Despite this vulnerability, however, Spain findsitself in a situation that may facilitate adaptationand mitigation. On the supply side, Spain’s riversare highly regulated and it also has a strongexisting program for building desalination facilities.On the demand side, programs such as theIrrigation Modernization Program (Programa deModernización de Regadíos) are designed toincrease efficiency and thus reduce demand.Finally, regarding water resources management asa whole, the CHs have developed and usedrought and flood control tools and techniques;they also have a policy to coordinate operation ofsurface and ground water reservoirs, aimed atcontrolling the drawdowns as well as the volumesextracted, to ensure reservoir recharge and obtaina safe yield (equilibrium). A participatory processamong the different users and a competent wateradministration is fundamental for this purpose (asan example, the case of the Ebro CH is describedin more detail in Chapter III).

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Inter-basin Water Transfers

The spatial irregularity of precipitation creates both“a dry Spain” and “a moist Spain.” Water is scarcein the Mediterranean areas, which are better suitedfor agricultural production and where, with theexception of Madrid, most of the population islocated, both on a permanent as well as on aseasonal basis. In the rest of the country,resources are abundant. Therefore, the transfer ofwater between basins in Spain is an option thathas been used since the 1930s to correct naturalimbalances and several inter-basin water transfersare presently in use. Nonetheless, with increasingecological awareness and regional autonomy, thisoption has lately given rise to controversies inSpanish society, becoming a political problem.

2.2 Water Supply and Sanitation

Stakeholders from Costa Rica commented that,while water was always made available to meet therequirements of the tourism industry, in many nearbycommunities, water services are not available 24hours a day. Although the remarks were intendedas a comment on a misdirected sense of values,they also point to the fact that, even in one of thedeveloping countries in Latin America with a highcoverage of urban water supply (97 percent), thesestatistics do not always reveal the quality of the

service. The need to improve the quality of theservices was also mentioned by other stakeholders,such as those from Panama.

However, in regions such as sub-Saharan Africa,which lags behind other World Bank regions inaccess to water (56.24 percent of population withaccess in 2004, compared with the MillenniumDevelopment Goal (MDG) 2015 target of 75percent), it has been reasoned that a low level ofservice “now” is much better than a higher level ofservice “tomorrow” (Bengoechea 2008). Similarly,access to a low level of service may represent agreat improvement at a much lower price that isaffordable for poor people and the level of servicecan always be improved in the future.

Stakeholders from Tunisia were concerned aboutaccess to safe water supply. Coverage limitationsreflected by the low number of connections werealso mentioned by stakeholders from Kenya.Sustainable access to safe drinking water andadequate sanitation has been recognized as a keyfactor to improved health, education, and severalof the environmental outcomes reflected in theMDGs. But reaching the water supply andsanitation-related goals has proven to be far fromeasy (Chen 2008). Almost one hundred millionpeople would need to be served each year toreach the safe water supply MDGs (Figure 2.5).

Figure 2.5 The Challenge to Reach the MDGs, by Region

Note: World Bank regions: MNA= Middle East and North Africa; ECA= Europe and Central Asia;LAC=Latin America and the Caribbean; AFR= Africa; SAR= South Asia; EAP= East Asia and the Pacific.Source: Chen 2008.

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Most of the people yet to be served live in the sub-Saharan Africa, South Asia, and East Asia andPacific regions.

Financing remains a major challenge. During the1990s, there were high hopes that neededincreases in financing were going to come from theprivate sector both domestic and international.Recent trends, however, show that while traditional

independent private investment had been increasing,it was not in the water supply and sanitation sub-sector. Public investment in infrastructure also showsa decreasing trend, and donor financing has beenstable at best (Chen 2008).

One of the factors making increased access towater and sanitation difficult is the world’sincreasing population and urbanization, as Figure

2.6 shows. During the second half ofthe last decade, however, a new trendof Public Private Partnerships (PPP)became evident, not only in developedbut also in developing countries.Figure 2.7 shows the many ways inwhich the role of the private sector inwater and sanitation has increased.

Although the number of new PPPawards by the World Bank havesomewhat decreased in the currentdecade, the urban population servedby private water operators has been

Figure 2.6 Rural, Urban, and World PopulationGrowth, 1950–2030

Source: Chen 2008, based on UN population data.

Figure 2.7 The Changing Face of the Private Sector

Source: Chen 2008, based on UN population data.

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increasing, especially in middle income countries.Overall since 1990, 55 million persons have beenserved by clearly successful PPP projects, 20million by projects with mixed outcome but stillactive, 20 million by expired and not renewedprojects, and 25 million by projects that sufferedearly termination. There is not enough informationabout projects serving 12 million, and 70 millionare to be served by recent projects.

It can be said that water PPP does not appear asa failed proposition for developing countries. Asecond generation of projects and players isappearing, targeted to specific countries andprojects. The so-called traditional operators stillexist and are appreciated, but small informalservice providers are receiving increasing attention

from donors in the context of meeting the MDGs.Both water utilities from developed countries aswell as new operators from developing countriesare becoming new actors in the new PPP scene,however not everywhere and not for every project,as the following discussion illustrates.

Western and Central Africa have some of thelongest experiences with PPPs in developingcountries. Cote d’Ivoire had the first such projectin 1959; over the last two decades, 15 of the 23countries in the region have experimented withPPPs, eight for water supply alone and seven forcombined electricity and water supply (Fall 2008).These have taken the form of concessions, leasing,management, and performance-based short-termservice contracts. Six of these can be considered

as successful, two achieved initialimprovements, five failed, and two aretoo early to judge. In Senegal, forexample, the reforms initiated by theGovernment in 1996, with theinvolvement of a private operator inmanaging the water subsector trough aleasing contract and an ambitiousUS$450 million investment program,contributed to increasing the populationwith access to water services in theDakar area from 80 percent in 1995 to98 percent in 2004 (85 percent throughhousehold connections and 13 percentvia standpipes) (Ndaw 2008). In the ten-year period, 1.7 million additional peoplewere served; financial equilibrium wasachieved in 2003, with average tariffincreases not exceeding 3 percent peryear from 1997 to 2003 (Figure 2.8).Average daily hours of service havesteadily increased, going from 16 in1996 to nearly 24 in 2006.

The results for Niger, which is a muchpoorer country coming from a longperiod of political instability and a watersupply subsector in bad shape, are notas good. In 2006, 64 percent had

Figure 2.8 Results of Water Reform in Senegal

Source: Fall 2008.

Figure 2.9 Results of Water Reform in Niger

Source: Fall 2008.

1.7 million Additional people served in 10 years

460.000 additional people served in five years

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access to water services (31 percent accessthrough private connection and 33 percentthrough standpipes); the average daily number ofhours was 18. In five years, the number of peopleserved had increased by 460,000 (Figure 2.9).The subsector was in financial deficit, with a 60percent bill collection ratio.

Lessons learned from the African experienceindicate that successful PPPs have been part of welldesigned comprehensive subsector reforms, drivenby basic concepts of transparency, accountability,autonomy, and incentives. Success occurs whenthey take a customized approach to the prevailingnational context and the particular situation of thesubsector. Mixing public and private financing wasviewed by the participant as the most pragmaticapproach to turn around water utilities (Fall 2008).

Stakeholders in Nicaragua and Palestine wereconcerned by the lack of economic incentives toregulate consumption and waste. Stakeholdersfrom China and Indonesia concluded that wateras an economic good has not been valued bysociety at large. There is a need to manage theharmony between water as a public good and aneconomic good. Other participants concluded thatwater pricing contributes to valuing water anddemand management (GDLN 2008d).

Learning from theSpanish Experience:Urban Water Management

Spain, with a population of 45.2 million in 2007,has an urban water supply demand on the order of4,700 hm3 per year. The average per personconsumption is in the order of 290 liters per day,which includes industry and services connectedto the municipal networks. Water demandincreases in the summer months (July toSeptember); this is more pronounced in theMediterranean coastal municipalities that drawlarge numbers of tourists. In municipalities withpopulations greater than 20,000, most of the

water used is from surface water sources (79percent); approximately 19 percent comes fromgroundwater and 2 percent comes from othersources (mainly desalination). In the smallerpopulation centers, the ratios between surface andgroundwater use are inverse.

According to the Spanish Water Supply andSanitation Association (Asociación Española deAbastecimiento de Agua y Saneamiento, orAEAS), as cited by Ortega and Pizarro (2008), 40percent of the population receives water suppliedby providers who are public entities, 36 percentfrom private companies, 16 percent from mixedpublic-private companies, 7 percent from the localgovernments themselves, and the remainingpercent through other management systems.Private intervention in management, consideringboth the private and mixed public-privatecompanies, is higher the smaller the populationcenter. Management by public entities increaseswith the size of the population supplied.

The average unit price of household consumptionis higher the lower the level of consumption, andbegins to drop as consumption reaches averagelevels. However, at high levels of consumption, theaverage price goes up again as a direct result of theapplication of price brackets that increase withconsumption. By population size, the highestaverage prices are in metropolitan areas, whereasthe lowest are for population centers with 50,000 to100,000 inhabitants. The availability of natural waterresources as well as differences in their naturalwater quality at the source, accounts for variationsin the price of water from place to place in Spain,depending on the basin (Ortega and Pizarro 2008).

Figure 2.10 shows, the geographical distributionof the average price in three distinct intervalsaccording to the 2004 survey by the AEAS. Thebasins of the Balearic Islands, the Canary Islands,and the internal basins of Catalonia and Segurafor the most part, have scarce surface waterresources and need to recur to high costsources—groundwater extraction, desalination, or

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inter-basin water transfers—and have a pricegreater than 0.70 Euros/m3. By contrast, in theCoast of Galicia, the basins of the North, theDuero, and the Ebro, with ample surface waterresources, the price falls below 0.55 Euros/m3.

2.3 Water Qualityand Environment

The abatement of water pollution and conservationof water resource was a common concern ofstakeholders from Nicaragua, Ethiopia, Uganda, andSenegal. Urbanization impacts the environment,contributing 60–70 percent of carbon dioxide (CO2)emissions (Freire 2008); because it is amajor sourceof water pollution both domestic and industrial, andcontributes to increased slums and poverty, thestanding paradigm has viewed rapid urbanization andthe emergence of too-large cities as an undesirablehappening. Now, however, cities are recognized forthe important role they play in development; no longerviewed as a burden, urbanization is increasingly seenas an opportunity. A new emerging paradigmrecognizes that economic growth and changehappens with concentration of people in towns andthat density is needed for productivity and growth.

The challenge is how to ease the urbanizationprocess while minimizing congestion costs andthe impacts on the environment, knowledge, andgovernance (Freire 2008). A major problem is howto ease the living conditions of millions of peopleliving in slums around the world, as depicted inFigure 2.11. Box 2.2 lists some actions that theWorld Bank and others are implementing toimprove the conditions of slum dweller.

Figure 2.10 Results of Water Reform in Niger

Source: Ortega and Pizarro 2008.

Box 2.2Water and the Urban PoorMost slum improvement projects arewater and sanitation projects, oftenaccompanied by social components:

• Cleaning water resources in rivers andlakes (for example, in Bolivia, SaoPaulo, Brasilia)

• Helping to create and improvemanagement of water utilities

• Helping to design and negotiateprivate-public partnerships

• Helping to design economic andrational incentives for subsidy allocationand affordable price systems

Source: Freire 2008.

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The Case of China

The integrated approach discussed above isimportant in addressing urban issues (Figure 2.12).In China, for example, strong economic growth andrapid urbanization have created a serious water andriver pollution problem that is a major issue ofconcern to the government. Investments in

wastewater including treatment have beenincreasing and, since the late 1990s, haveoutpaced investments in water supply (Figure2.13). The Government has been developing aseries of five-year plans that prioritize issues andproblems related to rivers, lakes, regions, cities, and

Figure 2.11 Population Living in Slums

Source: Freire 2008.

Figure 2.12 Integrated Urban Approach

Source: Kolsky 2008.

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bays. Mechanisms for consultation/policydialogue on environment are also beingdeveloped.

Environmental protection and improve-ment is also a World Bank priority inChina. The Bank started working onwastewater issues in the late 1980s andits commitment has expanded since theearly 1990s. There are 20 ongoingprojects and more are proposed for fiscalyears 2008 through 2010, working in over40 cities and half of the 30 provinces.There is a trend in Bank support to movefrom developed urban centers to lessdeveloped cities and regions (Sun 2008).

Despite the advancements achieved,important challenges remain (see Box2.3). To cope with these challenges, thefollowing have been recommended (Sun2008): strengthen/reform the institutionalsetting for wastewater management andintegrated basin management; expand thenational channels for wastewaterfinancing; strive for cost-efficientwastewater network investments; andpromote public private partnerships.

Figure 2.13 Subsector Investments in China

Source: Sun 2008, based on data from Ministry of Construction 2004 Yearbook and Draft 11thFive-Year Plan.

Box 2.3Waste Water Collection andTreatment in China: Present and FutureChallenges

• Cost recovery is good, but not yet sustainable.

• Wastewater collection systems are laggingbehind treatment.

• Focus is on investment rather than efficiencyin private sector participation.

• Utility regulation and management stilllocalized and fragmented.

• Inter-municipal and regional planning ofinvestments is just starting.

• Capacity at lower levels of government isweak.

• Integrated approach to policy study and projectpreparation and implementation needs to bestrengthened.

• Lessons learned need to be disseminated andinterventions scaled up.

• Environmental issues are complex: single andmulti-sources, point and non-point sources.

• Institutions, investments, and implementationhave to be strengthened and coordinated forsustainable development.

Source: Sun 2008.

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Latin America

Five hundred seventeen million people live in the36 countries of Latin America, 75 percent in urbanareas. By 2010, the number of inhabitants in LatinAmerica is projected to reach 600 million, 85percent of whom will live in urban settings. Fourcountries (Brazil, 138 million urban inhabitants;Mexico, 73 million; Argentina, 33 million;Colombia, 31 million) host 70 percent of the urbanpopulation of Latin America; 33 percent ofhouseholds are below the poverty line and 128million persons lack adequate wastewatercollection services (Pena 2008).

In Brazil, the largest and most populous country inthe region, the coverage of sanitation servicesincreased 3.2 percent between 2001 and 2006(Pena 2008). This growth, although representative,is low and treated sewage is still one of Brazil’smajor challenges. The lack of wastewater treatmentcauses serious problems such as water pollutionand water transmission of diseases. Currently, 73.2percent of Brazilians living in urban areas haveaccess to full sanitation services. However, 34.5million people living in urban areas do not.

The need for investment is high and subsidies aredeemed necessary by the government. For manyyears, these grants were focused on theconstruction of wastewater treatment facilities,but in 2001 the strategy was changed by theNational Water Agency (Agência Nacional deÁguas or ANA). When launching the Program forPollution Abatement in Watersheds (Prodes), thefocus was to link the release of subsidy financialresources to volumes of effectively treatedsewage, instead of construction. This innovativeprogram, also known as “purchase of sewage,”reimburses up to 50 percent of the facilityinvestment cost after the treated wastewatervolumes have been achieved (Tribuna del Agua2008). Quarterly evaluations are made by theservice provider and ANA performs periodicauditing to verify compliance with previouslyagreed management indicators (Pena 2008).

These examples highlight that, although the waterpollution problem is global, we do not live in an“average” world. The problems of inhabitants inthe mountains of Peru are different from those inslums of East Asia; the risks are different in Asiathan in Africa. Therefore, there is a need to act andthink locally, in ways that are specific to eachcontext (Kolsky 2008).

Source:Pena2008

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Learning from theSpanish Experience:Water Quality andEnvironmental Safeguards

Water Quality

The CHs are responsible for monitoring waterquality in the river basins under their respectivejurisdictions by measuring various parameters atgroups of stations that are part of the IntegratedWater Quality Network (Red Integrada de Calidaddel Agua or ICA Network). The main objective ofthis network is to warn of any anomaly caused bypoint-specific or diffuse contamination, and toswiftly set in motion, as the case may require,appropriate measures to prevent graveconsequences from the contamination. Waste-water discharges are sampled approximately sixtimes per year. Random sampling is also performedand there is self-monitoring by certain industries.Finally, the Navy Guard of the Rural Civil Guard(Guardia Naval de la Guardia Civil Rural—SEPRONA) and other agencies performsurveillance and report any irregular activities andconditions they detect. The 1985 Water Lawprescribes that discharges authorized by CHs intopublic waters are taxed through a discharge fee forprotecting and improving the receiving waters. Theamount of the discharge fee depends on thepollution load transported by the wastewaters fromurban sanitation systems, industrial establishments,and other water quality degrading discharges.

Environmental Safeguards

Sensitivity to environmental issues has beengradually incorporated into watershed managementover time. At present, and especially since the 1985Water Law, a fundamental component of waterresources management has been the establishmentof ecological flow regimes that make possible thecorrect functioning, at every river or lake stage, ofthe riparian ecosystems. An ecological flow is onethat ensures maintenance of the hydro-biological

and sociocultural heritage of the riparianenvironment in ways that are compatible with theneeds for household water supply and agriculturaland industrial uses. An ecological flow allows forthe development of the various components of theriparian ecosystem, including the flora and faunaparticular to it, the physical-chemical quality of thesurface water and groundwater, the dynamicgeomorphologic equilibrium of the system, and theparticular social, economic, cultural, and landscapevalues of the river. The ecological flow varies fromriver to river, and within a given river it depends onthe season of the year. The methodology fordetermining these ecological flows integrateshydrological findings with studies for modeling fishlife habitat. Spanish legislation establishes threecategories of studies for environmental evaluationsof projects which, in decreasing order of detail are:Environmental Impact Study (Estudio de ImpactoAmbiental), Environmental Documentation(Documentación Ambiental), and EnvironmentalData Sheet (Ficha Ambiental). The type of studyrequired by each project depends on itscharacteristics and on whether it includes naturalareas within the protected Natura 2000 network(Red Natura 2000).

2.4 Food Security

Eighty-five percent of the poor in sub-SaharanAfrica live in rural areas and depend largely onagriculture for their livelihoods. Agricultural growthis the key driver to poverty reduction andeconomic improvement and agriculture is themajor water user around the world. However, alack of strategic vision impedes the link that tiesagriculture and water development to povertyreduction and growth. This was the topic ofdiscussion of theWater Tribune’s first week, “LandUse Planning and Agriculture.”

Participants sought answers to key questions,such as how to reduce by half the costs ofagricultural development and innovativemechanisms for financing and ways to attract

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private investments and farmer participation(GDLN 2008e). This was also addressed duringother sessions, when Yemen participantsexpressed that 93 percent of renewable water isused for agriculture without regard for cost or anyother economic considerations. On the otherhand, in Sub-Saharan Africa, only 3.6 percent ofrenewable water withdrawals are used foragriculture. If full irrigation potential weredeveloped, this percentage would reach 12percent. The irrigation situation of Sub-SaharanAfrica comprises a broad menu of options and isdifferent from that of Asia or the global irrigationsituation (de Jong 2008). Box 2.4 highlights dataon irrigated agriculture around the world.

Irrigated areas have been increasing since 1961 inboth developing and developed countries (Figure2.14), but this increased capacity varies acrossregions. In eight Sub-Saharan African countries(Botswana, Burkina Faso, Kenya, Mali, Mauritania,Niger, Senegal, and Somalia ), there is no land witha rain-fed growing period greater than 200 days;these countries cannot meet food demand from

Box 2.4 Irrigation around the Globe

• There are 300 million ha with irrigationinfrastructure.

• 90 percent of the systems are used byvarious farmers in collectivearrangement.

• 70 percent of the systems were builtwith public funds.

• More than 50 percent of the 300 millionha are in need of rehabilitation and 90percent need investment to modernizethem with 21st century technology.

• 40 percent of the systems usegroundwater or pumping from surfacewaters.

• It has been estimated that 50 percentof future food supply will be producedin irrigated areas.

• Large collective irrigation systems allowgovernments to pursue agriculturalpolicies and sovereign food security.

Source: Contijoch 2008.

Figure 2.14 Irrigated Area, 1960–2000, (million ha)

Source: Darghouth 2008.

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rain-fed farming only (de Jong 2008). Yet over thelast 40 years, only 4 million ha of new irrigation hasbeen developed in Sub-Saharan Africa. Over thesame period, China added 25 million ha and India32 million ha (de Jong 2008). Although in someparts of Asia, such systems are to a large extentpublicly developed and managed, this is not thecase in other parts of the world (Figure 2.15).

There still is potential for expansion as well as forimprovement and for intensification, especially inSub-Saharan Africa and Latin America (Darghouth2008). Irrigation potential in Sub-Saharan Africahas been estimated in 39.4 million ha, but only 7.1million ha (18 percent) is under irrigation. Thisrepresents 3 percent of the total farmed area inSub-Saharan Africa and equals the irrigated areaof Mexico, is significantly less than the irrigated areaof Iran, and less than twice the irrigated area ofSpain (de Jong 2008).

Agricultural water management goes beyondirrigation. It also includes water management of rain-fed agriculture (which includes practices such aswater harvesting, flood and spate irrigation, waterrecession agriculture, soil moisture conservation, andothers). In certain developing countries experiencing

high population growth, high population pressure inhighlands, high level of land degradation, and highinflation of food prices, and where development islinked to rain-fed agriculture, despite good economicperformance in recent years, important developmentchallenges persist. In Ethiopia, for instance,agricultural growth has been based on extension ofcultivated area; both the agricultural sector and thenational economy are highly dependent on rainfall, asillustrated by Figure 2.16.

Agricultural water management also involves drainageand reuse of reclaimed waste, drainage water, andcatchment or watershedmanagement. It is integratedto other sectors and cross-cutting areas such asagriculture, rural development, water resourcesmanagement, and environment (Darghouth 2008).

Agricultural water systems vary greatly depending onclimatic conditions, water resource and hydrologicalregimes, agricultural scheme size, water conveyancesystems and distribution methods, on-farm irrigationmethods, types of crops, institutional andmanagement setup, just to mention some of the mostimportant factors. Agricultural scheme sizes vary fromvery large scale to small scale. The water source canbe surface or groundwater. The distribution system

Figure 2.15 Irrigation Management, by Region (ha)

Source: Darghouth 2008.

East Asia South Asia ECA

SSA LAC MENA

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can be collective or individual. The farm plot can gofrom well drained to not drained at all. Croppingpattern can go from monoculture to diversified.Crops can go from high value such as horticulture tolower value such as cereals; cropping intensity cango from low to high, and so can water productivity(Darghouth 2008).

It has been said that management of water foragriculture is “pro-poor,” since 75 percent of the

world’s poor are rural andmost are involved in farming(Fernandes 2008). However, poverty headcount is ingeneral greater in rain-fed-agriculture areas than inirrigated areas (Darghouth 2008), making evident theimportance of achieving good water management inthese areas. In the 21st century, agriculture is stillfundamentally important to achieving goals of povertyreduction, economic growth, and environmentalsustainability (Fernandes 2008). It also plays animportant role in development (Box 2.5).

Figure 2.16 Ethiopia: Rainfall Variability, GDP Growth, andAgricultural GDP Growth (percent), 1982–2000

Note: Left axis shows percent of rainfall variability around the mean annual rainfall; right axis shows GDP and agricultural GDP growth.Source: Dingamo 2008.

Box 2.5 Basic Functions of Agriculture for Development

• Is a source of food securityand livelihood (especially forthe poor and in rural areas)

• Integrates risk managementand resilience to climatechange via better naturalresource management

• Is a major driver for growthin countries whereagriculture generates asignificant share ofthe GDP

Source: Fernandes 2008.

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Not all investments in agriculture produce thesame effect in all countries. It depends largely onthe type of investment and the degree ofdevelopment the country has achieved. In lessdeveloped countries, for example, waterinfrastructure investments result in greater rates ofreturn than investments in management, but theconverse also applies in more developed countries(Figure 2.17).

Figure 2.17 Rates of Return on Investmentby Development of Water Infrastructure

Source: Contijoch 2008. Based on data in World Bank,China Country Water Resources Assistance Strategy 2002.

Source:Contijoch2008

Source:Contijoch2008

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Learning from theSpanish Experience:Irrigation

Spain has the largest amount of irrigated land inEurope. Its 3.7 million ha irrigated breaks down asfollows: 2,191,000 ha by gravity (59 percent),886,000 ha by sprinkling (24 percent) and 623,000ha by localized irrigation (17 percent), making it thesecond leading country in the world to use thisirrigation method, after the United States. Averageannual consumption of water for irrigation is on theorder of 24,000 hm3 (68 percent of totalconsumption), which implies an average applicationof 6,500 m3/ha/year. The source is surface water(2.5 million ha), groundwater (1 million ha), inter-basin water transfers (109,000 ha), return flows(26,000 ha), treated wastewaters (19,000 ha), anddesalination plants (2,000 ha).

The water concession is given individually to theland. Therefore, when a farmer sells his land heconveys, along with the property, the water right thatis attached to the land. By rule of law, water userswho use the same intake or concession must createWater User Associations (Comunidades deUsuarios). When the water is to be used forirrigation, these are known as Irrigation Associations(Comunidades de Regantes or CRs). Currentlythere are some 6,200 CRs in Spain. These are non-profit associations of all the landowners in anirrigated area who, required by law, autonomouslyand collectively administer public waters.

The current CRs have their origins in variousorganizations (brotherhoods, unions, assemblies,guilds) that go back to Roman times and that weredeveloped during the Visigoth period and the periodof Moorish domination.3 These are public-lawcorporate entities that in turn are part of the CHs.Their governing structure is summarized in Box 2.6.

The irrigators pay their CR for two items: theinternal tariff of the irrigation association, and theportion to be paid to the CH. The internal tariff,which covers administrative as well as operationsand maintenance costs, is established by thecommunity itself at its General Board. It may takeany of several forms. In traditional irrigation it is

Box 2.4 Governing Structure of theIrrigation Associations in Spain

• The General Board (Asamblea or JuntaGeneral), made up of all the users, isthe association’s sovereign body. Itexercises legislative functions, electsthe representatives to the IrrigationUnion (Sindicato de Riegos), andapproves or disapproves managementplans, budgets, etc.

• The Governing Board (Junta deGobierno) or Irrigation Union (Sindicatode Riegos) is the association’sexecutive body. Its main function is tosupervise and directly carry out thework approved by the General Board,mainly the distribution of water and themaintenance works or upgrades.

• The Irrigation Jury (Jurado de Riegos)is the judicial body that imposessanctions. Its main function is toarbitrate among irrigators with regard towater use. The purpose is to reach aquick solution to any problems thatarise, without having to turn to thecourts. The resolutions of the Jury areexecutive determinations, and may onlybe reviewed by means of a motion toset aside (de reposición) before theJury itself, as a prerequisite to filing acontentious administrative action.

Source: Ortega and Pizarro 2008.

3. The rules for distribution, based on customary law, were transmitted verbally at first, and only later were they set forth in writ-ten ordinances (ordenanzas). From these primitive organizations, various institutions were structured over time, from the famousValencia Water Tribunal (Tribunal de las Aguas de la Vega de Valencia), which has been in existence for more than one thou-sand years, to the present-day CRs.

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common to find tariffs per hectare, based on thedifferent crops. In pressurized irrigation, where it iseasier to install meters, the payment is generallyby volume of water consumed. In these cases atwo-part tariff is quite common: an initial sumdepends on the farmer’s area and is independentof the volume consumed; even if he does notirrigate he must pay it. The second sum isproportional to volume, with the possibility ofapplying different prices by brackets ofconsumption. Apart from the ordinary tariff,extraordinary tariffs are applied for financing theexecution of special works.

2.5 Technology Innovations

Several stakeholders expressed the view that thechange needed to achieve sustainabledevelopment requires more than a change ofvalues. Participants from Tanzania, for example,stressed the role of technology. Available waterresources are coming under stress due tocompeting agricultural, municipal, industrial, andenvironmental demands (GDLN 2008c).Population increase, urbanization, industrialization,and ensuing lifestyle changes all contribute tohigher demands for clean water and largerproduction of wastewater, as well as to theexpansion of irrigated agriculture.

Water conservation through improved conveyanceand water use efficiencies (application efficiency inthe case of irrigation) has long been advocated toreduce and optimize the volumes of water used invarious economic sectors. However, once waterefficiency and demand management programshave reached their limits, development of newwater resources is inevitable. This, and factorssuch as climate change, increase the strategicrelevance of spreading supply risks over a mix ofwater sources, including alternative resourcessuch as saline water and others seen as largelyimmune to climate change such as water reuse.Improvements in technology and facility design are

furthermore raising process performance andreliability, while also reducing unit treatment costs.In this context, desalination and water reuse appearto be reaching the threshold as economically andenvironmentally sustainable options for a growingrange of situations worldwide. Desalination canincrease the options for irrigation and potable watersupply in certain parts of the world. Water reuse, onthe other hand, can augment water resources fornon-potable or indirect potable uses, while alsoaffording environmental protection and deferringfreshwater development costs. With increasingscarcity pressures and evolving technology costs,the feasibility of desalination and water reuseprograms are growing fast, although alwayssubject to complex site-specific feasibility andoperational conversion constraints (GDLN 2008d).

Learning from theSpanish Experience:Desalination

Spain’s AGUA Program

The program Actions for Water Management andUse (AGUA: Asociaciones para la Gestión yUtilización del Agua) was created to cover theneeds for household water supply and productiveactivities in areas with limited surface andgroundwater resources. Although the program isnational in scope, the actions are predominantlylocated in the Mediterranean basins. The basicobjectives of this program are: i) to provide 1,000hm3 per year of new water resources, fullyguaranteed, along the Mediterranean shore fromMalaga to Gerona; ii) to improve and modernizean extensive network of supply and irrigationsystems; and iii) to provide for the environmentalrehabilitation of some emblematic natural areassuch as la Albufera, the Ebro delta, and the MarMenor, as well as a series of river stretches. Someeight million persons and 300,000 ha of irrigatedland stand to benefit from this program, whoseanticipated investment comes to 4 billion Euros.Half of this new water input comes from

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desalination of sea water or brackish water, 20percent from the re-use of treated wastewater, 15percent from savings resulting from themodernization of irrigation facilities, and theremaining 15 percent is obtained from bothsurface waters and groundwater.

The program’s present desalination activitiesinclude two plants in operation, five underconstruction or contracting, ten under tender, andten under study, public hearings, or preparation,with a total capacity of 640 hm3 per year. The maininstrument of the Ministry of Environment andRural and Marine Environment for developing theprogram in the Mediterranean basins is the stateentity Aguas de las Cuencas Mediterráneas S.A(ACUAMED)4, whose purpose is the contracting,

construction, acquisition, and operation of all typesof water works in the basins of the South; theSegura, Jucar, and Ebro rivers; and the internalbasins of Catalonia.

Desalination versusInter-basin Water Transfer

In Spain an intense debate is under way betweenthese two alternatives, which are summarized in thediscussion around the most important case, thewater transfer from the Ebro River vs. thedesalination plants of the Mediterranean. Table 2.2indicates the costs per cubic meter of each solution.

The desalination cost of 0.522 €/m3 refers to seawater and is an average value corresponding to adesalination plant with a capacity of 50 hm3/year,with an investment of 103 million Euros.Depending on the circumstances, this cost mayvary from 0.45 to 0.71 €/m3. In the case ofbrackish water, the cost depends on the salinity ofthe water. In Spain, the cost of removing salt frombrackish water is in the range of 0.21 to 0.36€/m3. Table 2.3 summarizes the expectedenvironmental impacts of each approach.

Table 2.2 Costs per m3 of Desalinationand Inter-basin Water Transfers (€€)

Table 2.3 Summary of Environmental Impacts from Desalination and Inter-based Water Transfers

Source: Ortega and Pizarro 2008.

Item Desalination Ebro Water Transfer

Amortization 0.133 0.200

Energy 0.240 0.100

Operation and Maintenance 0.149 0.300

Compensation fee - 0.300

Total 0.522 0.360

Desalination The Ebro Water Transfer

• Greater consumption of energy, therefore greaterCO2 emissions

• Harm by brine to marine meadows of Posidoniaoceanica

• Boron content of the desalinated water • Landscape impact (civil works, electrical lines, etc.) in coastal areas.

• Worse water quality.• Impact on the Natura 2000 (three river crossings andone space marginally transformed by human activity)

• Impacts on the Ebro Delta (accelerates the delta’sregression; penetration of the salt wedge in theriver’s channel)*

• A 900 km long mark on landscape

Source:: Ortega and Pizarro 2008.

4. http://www.acuamed.es

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2.6 Communication

The question of how to communicate about waterissues were an important component of the GDLNsessions. One aspect of this involves exchange ofinformation between sources and interestedpersons, or creating and sharing water knowledge.For example, information about country waterresources and use can be found in Google,libraries, through colleagues, in Wikipedia, etc.,and all of these sources have pros and cons. Inorder to capture the benefits of the quick accessthat Google provides, the variety of sourcesavailable through libraries, and the interactivecharacter of personal communications, the WorldBank is developing what it calls the Country TopicOverviews (CTOs) through a pilot project usingWikipedia (Schiffler 2008). The CTOs aredesigned to provide systematic information thateverybody can edit under certain controls,information boxes, links to other articles,documents and Websites, and a discussion page.In other words, it is a living document with theadditional benefits of low maintenance, low cost,replicability, and high visibility (Schiffler 2008).

Another important facet of communication isbetween service providers and users of theservice. In many countries, the major transition ofmost utilities in the 1990s was from centralized todecentralized public provision. While utilities havechanged in size and nature with decentralization,they face the same challenges as their centralizedpredecessors. Many utilities are locked in thevicious spiral of weak performance incentives,customers’ low willingness and ability to pay, andinsufficient funding for maintenance leading todeterioration of assets, while necessary reformsare often blocked by inappropriate politicalinterference. Although considerable attention hasbeen placed on the financial and technicalgovernance of utilities, there is little communicationwith users and their voice in utility matters is oftenmuted. One consequence is that service providersdo not take account of users’ priorities andpreferences and the users’ comprehension of the

importance of the financial viability of the provideris very low. The utility, then, loses the trust andcooperation of the community that it is supposedto serve. The result is service deterioration, whichfurther alienates users.

The importance of consumer accountability in theurban water supply and sanitation sector is gainingattention. Consumer accountability can be definedas the degree to which public or private serviceproviders of water are accountable to theircustomers for their performance, their conduct,their use of resources, and policy decisions. It is aspecific type of social accountability that is aprocess where citizens or citizens’ groups workdirectly to hold power holders to account for theirperformance and behavior. Recent research hasshown that consumer accountability can improvethe quality of services by making the providersmore accountable to the people they serve.Utilities should account for their actions andresources to their consumers if they expect themto pay for services (GDLN 2008f).

A GDLN session on social accountability wasintended to create awareness and exchangeknow-how on social accountability and the toolsused to support social accountability initiatives inthe water sector; how utilities, governments, andcivil society can initiate social accountabilityinitiatives; and some of the challenges forsustainability of these initiatives. Three casestudies were presented: i) a citizen-led initiativein Kenya using Citizen Report Cards in the citiesof Kisumu, Nairobi, and Mombasa; ii) a utility-ledinitiative in the municipality of Puerto Cortes,Honduras; and iii) a government-led initiativedealing with consumer complaints from the Officeof the Ombudsman in Peru (van Ginneken 2008).

In Puerto Cortés, Honduras, before the mid-1990s, water services were managed by anational utility. Performance was low and watersupply coverage stood at 62 percent. In 1994, the

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Municipality of Puerto Cortés acquired control ofits drinking water system. In 1999, the municipalwater division was corporatized into a municipallyowned company, Aguas de Puerto Cortés (APC).Over the years, the Municipality has sold part ofits shares in APC, and it now holds 19 percent.Sixty-two percent of the shares are owned by fivecooperatives with a collective membership of11,000 members, such as the cooperative of portworkers and the chamber of commerce; 19percent are owned directly by households. APCengages regularly with users through publicmeetings as well as surveys to inform the companyof user perceptions of its performance. APC has afunctioning complaint mechanism, and users cango to the regulator if they are not satisfied with theactions taken by APC. At present, APC hasreached water supply coverage of 92 percent ofthe population. Service has improved from 12hours a day to continuous 24-hour service.Unaccounted for water has decreased from 50percent to 30 percent (GDLN 2008f).

In the Peruvian case, when a pensioner saw thathe was overcharged for his water, he complainedon his next bill, but to no avail. This made himdecide to come to Peru’s ombudsman to get help.Since 1996, Peruvians can bring their case to theOmbudsman, who maintains a network of 46 fieldoffices. Problems with utilities are the mostfrequent complaints. Complaints often deal with

intermittent supply or billing issues. Bringing hiscase to the ombudsman helped to move the utilityinto action. Although it cannot enforce compliancewith its decisions, the resolution of cases is high.Many cases are resolved in less than a week,although some take longer. Through this process,the voices of the poor and the marginalized areamplified and the authorities are put on notice thatcorruption, incompetence, and an indifferentattitude are not acceptable (GDLN 2008f).

Citizens' Report Cards are being used in Kenya tostrengthen citizen engagement as a means ofenhancing public accountability, performance, andresponsiveness in the urban water and sanitationsector. The Citizen Report Card is a simple butpowerful tool to provide public agencies withsystematic feedback from users of public services;they point out areas where service providers aresucceeding and areas that need improvement. Thecitizen report cards on urban water, sanitation, andsolid waste services in Nairobi, Mombasa, andKisumu revealed general consumer dissatisfactionand highlighted inequities suffered by the poor inaccessing services and interacting with utilities. TheBank’s Water and Sanitation Program–Africa, whichprovided technical assistance to develop the reportcards, is helping stakeholders in the subsector toapply the report cards in identifying urgent priorities,especially regarding services for the urban poor (vanGinneken 2008; Rop 2007; Thampi 2006).

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This chapter concentrates on experiences sharedduring the two technical visits made by groups ofkey water resources client stakeholders. Theexperiences of the technical visits highlighted arethe adaptation to changing climatic conditions inthe Ebro basin, the efficient use of water use inAlmería utilizing both groundwater and desalinatedwater, and the integrated urban water manage -ment system in the Madrid region.

3.1 Adaptation to ChangingClimatic Conditions in the Ebro Basin

Strategic Importance of Water for the SocioeconomicDevelopment of the Ebro Basin

The Ebro basin or Hydrographic EbroDemarcation (Demarcación Hidrográfica del Ebroor DHE) is the largest in Spain, occupies a totalarea of 85,362 km2, 445 km2 of which are inAndorra, 502 km2 in France, and the rest in Spain.The part in Spain includes parts of nine autonomouscommunities (comunidades autónomas) and 18provinces. It has 347 rivers that drain into the Ebro,the main river, which is 910 km long and flows intothe Mediterranean forming a delta. Moreinformation can be found in Annexes A.1 and A.4in the DVD.

In the DHE territory, the agrarian sector (withstrong irrigation support) remains important, buthas been reduced compared to the urban sector

and industrial development. Within the DHE, themost important sectors in terms of the water useare examined here.

URBAN AND TOURISM SECTORS

The population of the DHE is 3,086,000inhabitants (year 2007), essentially determined bythe existence of seasonal tourism that isconcentrated in the coastal area. Although itsinfluence with respect to water consumption is notrelevant, the tourist sector contributes more than3,000 million Euros in water-related leisureactivities. This externality allows the region greatpresent and future potential that must beconsidered. The tendency of population growth inthe coming years indicates that, after 2015, theDHE will have 3.3 million inhabitants, and increaseof 6.9 percent since the current populationcensus. In addition to the consumption of thepopulation in the Ebro River basin, water resourcetransfers provide water to Gran Bilbao, with apopulation of 800,000, and Campo de Tarragona,which normally has a population of 565,000inhabitants and twice that during the summermonths. Thus the total population supplied withwater resources from the Ebro is nearly 5 millioninhabitants.

THE AGRI-FOOD INDUSTRY

The agri-food industry is a key productioncomponent in the Ebro valley, thanks to thestructural changes implemented in irrigation in the

LEARNING FROM THE SPANISH EXPERIENCE: THE TECHNICAL VISITS 3.

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1970s. There an increasing interrelationshipamong agriculture, livestock farming, and the foodprocessing industry, although this interrelationshipdoes not always take place entirely within theregion. Meat production is a particularly powerfulagri-food industry that accounts for more than 30percent of total Spanish meat production.

The gross value added (GVA) of agriculture,livestock farming, and fisheries amounts to 3,170million Euros (2005), which represents 5 percentof the DHE’s GVA and is 1.8 points above thenational average. The sector employs around121,000 workers, 7.8 percent of all employmentin the DHE.

Irrigation is undergoing major modernization andrestructuring. Nevertheless, geographic asymmetryexists: whereas the mountainous periphery hasbeen subject to a long process of abandonment ofagrarian operations, the Valley of the Ebrogenerates around one fifth of total Spanishagrarian production.

The irrigated area is around 700,000 ha ofeffective irrigation and 900,000 ha ofconcessions. The largest irrigation areas arelocated on the left bank (Aragón, Gállego-Cinca,Ésera, with the canal de Aragon y Cataluña, andSegre) and along the main course of the Ebro(Canal Imperial de Aragon, Canal de Lodosa,Canal de Tauste, and more recently Canal deNavarra). This productive modification has allowedgood adaptation to resource insufficiency. Cropevolution forecasts for the coming years need totake into account the transformation of farmingmethods and crop types and the possibleincentives on industrial or bio-energy crops. Suchcrops usually have high water requirements, anddemand may rise in the future. However, many ofthese crops are heavily subsidized, a situation thatcould alter at any time, and farmers tend to reactto change with certain parsimony.

ENERGY AND THE INDUSTRIAL SECTOR

The industrial sector in the DHE accounts for 23.0percent of the total GVA (well above the nationalaverage of 15 percent). It employs close to 350,000workers, which is 22.2 percent of the employedpopulation. Territorially, this industry is concentratedalong the Ebro and along a number of highlyspecialized pockets of industry around middle-sizedtowns. Nevertheless, the industrial sector’s waterdemand is moderate. Of Spain’s total energyproduction, 32 percent of nuclear power, 21 percentof hydropower, and 11 percent of conventionalthermoelectric power is generated in the DHE at 3conventional thermoelectric plants, 4 combined-cycle plants, 2 nuclear plants and 360 hydropowerfacilities. The energy sector accounts for 1,500million Euros (2005), 2.3 percent of the DHE’s GVA.The foreseeable future growth in electricity demandthroughout Spain could potentially mean an increasein hydropower facilities which, depending on howthey are managed, could affect resource availabilityfor other uses, and the possibility of greater waterrequirements for the cooling of new thermoelectric orcombined-cycle power plants.

Climatic and Hydrological Characteristics of the Region

The orographic and morphologic conditions of theDHE territory give rise to different climatic regions,from the high mountain areas in the north to atypically Mediterranean climate at the mouth of theEbro. Aridity is one of the main climate features inthe center of the DHE, precisely where most of thepopulation and economic activity is concentrated.The mean annual precipitation in the Ebro basinover the 82-year period between October 1920and September 2002 was 622 mm per year. Theminimum annual value corresponded to thehydrological year 1949/50, with 452 mm per year,and the maximum annual value was found for theyear 1935/36, with 840 mm per year. The 1996Hydrologic Plan considered inflow seriescorresponding to the period 1940/41–1985/86.Total inflows in the natural regime stood at18,217

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hm3 per year. The main fluvial network has a lengthof some 13,000 km, of which 910.5 kmcorrespond to the Ebro itself. The most importanttributaries are on the left bank, draining thePyrenean area which has the highest precipitationand includes a considerable snowmelt component.

Vulnerability

Existing statistical studies on precipitation trends inthe Ebro basin do not confirm an overall decrease,although in some areas—such as the Segre or Jalónbasins—such a trend can be seen in the 1920–2001 period.5 The most recent statistics(1980–2005) show a lower trend in contributionsto streamflow. This reduction has been explainedthrough the augmentation of the basin’s irrigationconsumption and also by the intensive use of thegroundwater resources that diminish thecontributions to base flow. Recent studies alsoshow slight reductions in run-off due to theincreased forest surface. On the other hand, areduction of the nivopluvial inputs of the Pyreneanrivers is noticeable in the combined effect of thetemperature increase and the precipitationdecrease that causes the monthly streamflowregime to vary and has direct influences on theiravailability for economic uses. Nevertheless itcannot be assured with absolute certainty thatthese situations correspond to manifestations of theclimatic change. In view of the lack of sufficientlyaccredited data for the Ebro basin as a whole, the2027 planning horizon supposes a 5 percent dropin inflows on account of climate change.6 TheConfederación Hidrográfica del Ebro has recentlycommissioned the University of La Coruña to carryout a study to assess the effect of climate changeon water resources in the Ebro hydrographic basin,which is the most detailed study to date on theimpact of climate change on water resources in thebasin. The analysis addresses several sub-basinsand different hypotheses, determining impacts on

climatologic and hydrologic components, anincrease in the mean temperature from 1.1 to 2.6oC,and reduction in the total flow between 12 and 19percent (Ortega 2009). The results also showstrong space-time variability. The effects of changeare most notable in the Ebro’s right-bank basins(which already present water deficits) and in lowwater flows (which tend to be more severe and tooccur more frequently, although this may beattributable not only to the effects of climate changebut also to the pressures of growing demands onresources that remain more or less stable).

A History of Adaptation

The environmental characteristics of the Ebro Riverbasin have had an important influence in theevolution of the system of water resource use thathistorically has followed a trajectory of adaptationto the prevailing conditions. From a historicalperspective, the establishment of irrigation in thecentral axis of the river represents an answer to thedrought conditions and the necessity to supplyfood to the population. Prior to the twentiethcentury, the irrigated territory was reduced mainlyto small home plantations near self-supplying smalltowns, oriented toward specialized horticulturalproducts. Supply to the cities was done in a veryprecarious way and the industrial uses were limitedto mills and other plants to take advantage of thewater energy. At the end of the nineteenth century,the crisis enlightened the regenerationistmovement that would have great importance in thewater resources field and its use for irrigation bymeans of state interventions in the construction ofcorresponding infrastructures. This produced threegreat lines of action in response to the followingissues: first, the necessity to approach the wateruses of the river basin in an integral manner;second, the capacity for self-management of wateron the users side; and third, public investments inhydraulic infrastructures. The first two issues are

5. “Evolución de las precipitaciones en la cuenca del Ebro: caracterización espacial y análisis de tendencias” (Evolution of pre-cipitation in the Ebro basin: spatial characterisation and trend analysis) in Ortega (2009). 6. This figure is based on CEDEX studies carried out to assess the potential impact of climate change on water resources, ascited by Ortega (2009).

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addressed by the creation of the CHs, and in theEbro the constitution of the CHE in 1927.

In response to the third issue, the 1950s and1960s saw the start of a major building programof hydraulic infrastructures—partly for hydropowergeneration and partly for irrigation—that aimed tosolve Spain’s energy and food deficit. In the1960s and early 1970s, a structural change tookplace in the Spanish economy, with a transfer ofhuman resources from the primary sector to thesecondary and tertiary sectors. As a result, itbecame necessary to step up the productivity ofthe food production sector. This was only possibleby extending irrigation, in combination withrestructuring agricultural land by means of landplot consolidation measures and intensification ofthe capital factor. In short, it was necessary toadapt irrigation in order to facilitate the changeoverfrom subsistence farming to market-orientedfarming, a trend that continued during the 1980s.Incorporation into the European Communityopened the possibility for incorporation into newmarkets and new economic instruments.

The strategies to adapt to this new situationstarted to be seen in the early 1990s, in terms ofincreases in the area dedicated to continentalcrops or orientation toward specialized productionand agro industry. When technology made itpossible, the irrigated land was extended to other

areas of the river basin, although construction ofmultiple dams was necessary to do so. Thesechanges were undertaken at the cost of animportant modification of the environmentalcharacteristics of the territory, a fact that societyhas taken consciousness of. The consideration ofenvironmental values in the projects is aconsequence of the paradigm change in which theenvironmental value of water is increasinglyrecognized, a change that is motivated, as well, bythe greater role of urban society in the river basin.

On the other hand, water users, both direct andend users, have been acquiring a greater degreeof consciousness with respect to the importanceof water and its dependence on climatic variabilityand change. Participation of direct users has beenkey in the operation of the CHE, as is evident bothin their representation in the community groupsassociated with the CHE and their involvement inthe public participation process for developing theEbro River’s future hydrologic plan.

CHE currently is implementing a set of adaptationand mitigation measures for the effects of climatechange and variability in compliance with theNational Climate Change Adaptation Plan, theSpanish Strategy of Climate Change and CleanEnergy, the “Alberca” Program, and the EuropeanUnion Water Framework Directive (WFD) (Ortega2009). These measures are summarized in Box 3.1.

Box 3.1 Spain’s Climate Change Mitigation and Adaptation Measures

• To help guarantee existing water demands, there is a reservoir capacity of around 3,720 hm3.Reservoirs used for hydropower production can store more than 3,900 hm3 of water, whichcould also be used to satisfy other demands. In addition to this, 970 hm3 of reservoir capacityis currently under construction, the most significant projects being Enciso, Cigudosa-Valdeprado, Lechago, Mularroya, La Loteta, Montearagón, Soto-Terroba dams and theheightening of Yesa and Santolea dams

• Provisional limitation of new applications for exploitation of certain groundwater resourcesuntil the completion of work to assess the real situation of these areas and to define whatmeasures need to be adopted

• Modernization of irrigation, reducing the amount of water per unit of production

• “Alberca” program, involving a complete review of existing concessions in order to know thereal current situation and subsequently embark upon a process which could release flows forenvironmental purposes

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Box 3.1 Spain’s Climate Change Mitigation and Adaptation Measures cont’d

Water-related Actions Promoted by the National Climate Change Adaptation Plan

• Development of regional climate-hydrology models that provide reliable scenarios of all the terms and processes of the hydrologic cycle, including extreme events

• Development of ecological quality models for water bodies, compatible with the applicablescheme in the Water Framework Directive (WFD)

• Application of the hydrological scenarios for the twenty-first century generated in othersectors highly dependent on water resources (energy, agriculture, forestry, tourism, etc.)

• Identification of the indicators most sensitive to climate change within the applicable schemein the WFD.

• Assessment of hydrologic management system potential in hydrologic scenarios generatedfor the twenty-first century

• Development of guidelines to incorporate considerations on the impact of climate change inenvironmental impact assessment and strategic environmental assessments for plans andprojects in the water resources sector

Urgent Measures to be Analyzed in the Basin Plan, in agreement with the exigencies ofthe Water Framework Directive), including in the Spanish Strategy of Climatic Changeand Clean Energy, Horizon 2007-2012-2020

• Establishment of a water control plan: Going beyond the “Alberca” program (review of wateruse concessions to identify water volumes that could be freed and used for environmentalpurposes) and of the mass installation of water metering and gauging equipment. Priority shallbe given to measures such as modulation and adaptation of concessions in various river basins

• Checks on water management efficiency in irrigation systems and in large industrial andpower generation uses. This action should include cooperation agreements betweenadministrations and users

• Modernization plan for irrigation hydraulic infrastructures, paying special attention to theadaptation of internal regulations to facilitate irrigation upon demand. There is a generalizeddeficit of infrastructures of this type in all the basin’s historical irrigation systems. Apreliminary catalogue of actions has been designed in collaboration with the Ebro BasinFederation of Irrigation Communities

• Irrigation modernization plan for the new period 2008–13

• Analysis of the economic, social and environmental feasibility of the 52 new reservoirsenvisaged in the current plan but not yet started, and of possible complementary oralternative solutions, their social acceptance, and their territorial interest. The reservoirsincluded in the current plan have a capacity of 1,048 hm3

• New regulation proposals by public and private promoters after approval of the current basin plan

• Linking of new concessions to minimum internal regulations which guarantee environ mentalflows at the intake. In existing concessions, fostering of internal reg ulations linked withmodulated extractions to be compatible with environmental flows

• Study of possibilities and fostering of the combined use of surface water and ground water inorder to improve guarantees, minimize costs, and reduce negative impacts

• Water efficiency awareness campaigns related to good management actions

• Investment in water supply and distribution networks in order to replace obsolete andamortized infrastructures

Source: Fernandes 2008.

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Flood Control

Studies conducted in the 1980s on historicalfloods identified 282 areas with a potential floodrisk, classifying their potential for future floodingbased on the extent of damage in past floods. Todo this, an impact matrix that assigns values to thedamage caused by each flood to people andfacilities was used; it yielded a coefficient of riskmaking it possible to rank the areas inventoried. Asa result, it was considered that there were 18maximum risk zones in the Ebro basin, 45 withintermediate risk, and 219 with minimal risk. Of themeasures adopted, structural measures stand out,such as head abatement dams, dredging channels,inlets, cut-offs, etc., and management measures,such as land use management, establishment of aninsurance system, and the Automatic HydrologicalInformation System (Sistema Automático deInformación Hidrológica or SAIH), which providesinformation in real time on precipitation and flowsthat is recorded at a series of points in the basinand makes it possible to anticipate how the floodmight be controlled so as to diminish potentialdamage. This information allowed forecasts to bemade for points of interest in the hydrographicnetwork as to the possible evolution of thehydrological/hydraulic situation, as well asdecisions about optimal areas for flood control.7

Drought Management

The Special Drought Plan developed by the CHEwas approved in 2007; it sets the strategies to befollowed in dry periods. The Plan: i) establishesthe minimum reserves in the reservoirs to ensurehousehold supply as a priority use; ii) sets theobjectives for water savings or reducedconsumption by the population: reducing hours ofservice, reducing the water pressure, prohibiting

certain uses, etc.; iii) once the reserves are in thereservoirs for supply of the population and otherpriority uses such as the minimal ecological flow,it (a) establishes amounts available for agriculturaluses (irrigation users must use these amounts tomake decisions about reducing area planted,maintaining the alternative of traditional crops,reducing the unit amounts or number of timesirrigation is applied, etc.); (b) sets the criteria fordistributing water among the different zones andcollective and private users based onconcessional rights; and (c) defines the regulatoryand enforcement standards that will be usedduring the campaign to ensure that no one fails tocomply with the guidelines.

The Automatic Hydrological Information System of the CHE

SAIH is a tool for making decisions related to: i)forecasts and activities in the case of floods; ii)overall monitoring of water resources; iii) waterquality control; iv) dam security; and v) improvinghydrological and meteorological databases. Tomeet these objectives, a tele-detectionmeasurement network has been installed thatcaptures, processes, stores, and presents the fullset of variables measured by the sensors. TheSAIH consists of a micro processedtelecommunications system for data transmissionthat includes 98 repeater stations andradiofrequency transceivers at all the control anddata concentration points and that allows for thetransmission of information to the CPD ofZaragoza. With this organizational structure,construction on the SAIH Ebro began in 1989 andconcluded in 1997; in all, some 74.5 million Euroswere invested in it. The SAIH Ebro operates 24hours a day year round.8

7. Of the expert forecasting systems, special mention should be made of the CAESAR, which provides a flood routing hydrologi-cal model and a statistical model. The program, which provides as output the hydrograph and the water-level reading expectedin the Ebro River as it flows through Zaragoza, makes it possible to minimize the risk with 24 to 48 hours of lead time.8. Its basic data can be consulted on the Internet at http://www.saihebro.com. More information is provided in Annexes A.1and A.4.

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3.2 Water Use in Almería

The province of Almería, situated in thesoutheastern sector of the Iberian Peninsula, is thedriest area in Europe, with annual rainfall on theorder of 200 mm. Average temperatures rangesfrom 12ºC to 24ºC. Two climatic characteristicshighly favorable for the production of fruits andvegetables are the more than 3,000 hours per yearof sunlight, and the low relative moisture, whichprevents the development of fungal diseases.

The province of Almería is home to agriculturalproduction on more than 30,000 ha intenselyfarmed, dedicated to fruits and vegetables forexport, based on the following technologicalinnovations: i) growing under plastic sheets, mainlyusing the Almería greenhouse model; ii) dripirrigation and joint management of water fromdifferent sources (surface, groundwater, rainwater,

treatment, and desalination); iii) soil managementusing the technique of sanding (enarenadoalmeriense); iv) constant agronomical researchinto local crops, with a special line forecological/organic crops; and v) exhaustive qualitycontrol of the products. One key factor has beenthe powerful commercial organization created bythe producers themselves, which makes itpossible to send the area’s high productionvolume to markets outside Spain, mainly in theEuropean Union.

The largest greenhouse area is concentrated in theCampo de Dalías. The area’s development beganin the 1950s, first making use of groundwater,demand for which grew enormously in the 1960sand 1970s as a result of an increase in the irrigablearea, in the development of tourism, and in thegrowth of the city of Almería. Inadequatemanagement of the aquifers brought about an

Figure 3.1 Almería Corridor

Source: http://www.mapasvectoriales.com/images/ciudad/mapa_Almería_provincia.jpg.

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excessive decrease in the piezometric levels, withits subsequent salt water intrusion and deteriorationof water quality. In order to recover the aquifer andthe water supply for irrigation, a series ofcomplementary measures have been implemented:i) reduction of amounts extracted by 50 hm3; ii)recharge of the aquifer by the levees built in theSierra de Gador; iii) practices for water saving inirrigation (5 hm3); iv) flow assignment from theBenínar reservoir of 20 hm3; v) reuse of wastewater(5 hm3); and vi) desalination of sea water (20 hm3).The main crops are eggplants, zucchini, stringbeans, cantaloupe, cucumber, bell peppers,watermelon, and tomatoes. There is growinginterest in flower cultivation, especially carnations.

The Almería-type greenhouse is a low-cost structuremade of light materials. Plastic is used for theenclosure, and a two-layer cover is used to capturethe rainwater for irrigation. Under greenhouses oneto two crops per year are obtained. Production isinterrupted in June and July, when there is

considerable production of fruits and vegetables inother parts of Europe. In those months the land isleft to lie fallow, and the next crop is prepared. Thistype of agriculture is labor intensive, on the order of700 person-days per year per ha. Investment per haof greenhouse varies from 180,000 to 300,000Euros. The gross value of production is 70,000Euros per hectare. The costs are 55,000 Euros perhectare (current expenditures and amortization) andthe profit is 15,000 Euros per hectare. Averagewater consumption is 5,600 cubic meters perhectare per year, and water productivity is 12 Eurosper cubic meter.

A second type of agriculture common in the area issanding, used by 85 percent of the farmers in thearea. The technique of sanding started in 1955. Itconsists of placing on the land, which is first leveledand the rocks removed, a 1 cm layer of manureand, on it, some 10 cm of siliceous sand. Due to itslow specific heat, the sand quickly heats up, andthe heat received is transmitted to the lower layers,such that the root zone heats up, intensifyingmicrobial activity; differences of temperature of upto 4ºC are obtained between a naked and sandedsoil. The sand, in addition, reflects a large part ofthe energy, increasing the ambient temperature ofthe greenhouses, and facilitating photosynthesis.Another advantage is breaking the capillary rise ofthe water in the soil-sand interface, keeping the soilmoist. The sand also prevents excessivecompaction of the surface of the soil due to beingstepped on or for other reasons.

Aerial View of Greenhouse Areas in the Campo de Dalías.

Greenhouses in Campo de Dalías.

Source: Ortega and Pizarro 2008.

Photo by Luis E. García, 2008.

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The World Bank technical visit focused on twoCRs, the western Sol Poniente CR and theIrrigation Area of the Campo de Nijar.

The western Sol Poniente CR9 has 1,800 ha and1,454 community members, and makes use, as acommunity, of six wells, whose water is mixed withwater from the Beninar reservoir. The CR has fivereservoirs for regulation and one network of pipingthat takes the water, under pressure, to each user,who uses it on demand. The CR has recentlycompleted: i) an irrigation modernization program,which includes modernized hydrants andimplementation of a system for remotemanagement of meters, valves, soundings, andreservoirs; and ii) the implementation of an IrrigatorAdvisory Service. These improvements broughtabout a 16 percent savings of irrigation water.Current average consumption is 6,150 cubicmeters per hectare at an average cost of 0.18Euro per cubic meter.

The Irrigation Area of the Campo de Nijar is anexample of joint management of groundwater anddesalinated water, with some 8,200 ha ofgreenhouses under irrigation, and 1,826 users.The area’s development was begun in the 1970susing groundwater, building a series of wellsapproximately 200 meters deep; a users’ groupwas established for each well called the AgrarianProcessing Company (Sociedad Agraria deTransformación or SAT). The expansion of theirrigated area and the resulting overexploitation ofthe aquifer created problems of deterioratingwater quality, which resulted in many farmerscapturing the rainwater that falls on thegreenhouses, mixing it with the well water.Nonetheless, this solution proved insufficient, sothe administration was asked to build theCarboneras desalination plant. In 1999, thefarmers created the Nijar Users Community(Comunidad de Usuarios de Agua de la Comarcade Nijar or CUCN10) to use the desalinated water.

The average cost of the water is on the order of0.34 Euro per cubic meter, which represents some1,900 Euro per hectare. This high cost is alimitation on the use of the desalinated water oncrops that are not highly profitable. In the case ofthe Campo de Nijar, however, that cost can beassumed by the farmers, since it is on the order of3 percent of the production costs or 13 percent ofprofits.

The Desalination Plant at Carboneras

The Carboneras desalination plant (IDAMCarboneras), which started operations in 2005, isa sea water desalination plant with inverseosmosis technology and a treatment capacity of120,000 m3/day (42 hm3/year), open sea waterintake, and 12 membrane frames. Foreseeing afuture expansion, the civil works have been basedon twice the treatment capacity. This work iscompleted by pipes that deliver water to thevarious users. The plant was concluded in 2005and its operation, for a 25-year period, is entrustedto a temporary union of private companies. Theplant’s nominal output of 120,000 m3/day ofdesalinated water, with less than 400 parts permillion (ppm) of TDS and a conversion factor of45 percent, presupposes sea water consumptionof 266,667 m3/day, 146,667 m3/day of whichreturns to the sea as brine, with a concentrationof salts approximately twice that of the sea water.The brine is released in the channel for dischargeof water used for cooling from the Central TermicaLitoral power plant, mixing it with the waterdischarged by the thermal plant, resulting in alower-temperature, lower-salinity mix, not affectingthe meadow situated around the discharge point.

The desalinated water is used as follows: i)irrigation for farming in the Campo de Nijar, with27 hm3/year; ii) household supply, with 15hm3/year for the Campo de Nijar and themunicipalities of the eastern coast in the province

9. http://www.solponiente.blogspot.com10. http://www.cucn.es

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of Almería; and iii) the industrial use of smallamounts, less than 1 hm3/year, which correspondsto water income to the thermal power plant CentralTermica Litoral, situated alongside the desalinationplant, mainly to produce the steam needed for theturbines.

The Feasibility of Using Desalinated Water

Almería is Spain’s driest province and,paradoxically it is also Europe’s most intensivelyirrigated land with production worth 2,275 millionEuros during the two-year period 2007–08.Almería’s economic development is staggering.Between 1994 and 2002, Almería’s GDP nearlyquadrupled relative to the regional and nationalaverages. This growth has been driven by intensiveagriculture for horticultural products and morerecently by a rapidly developing tourism sector.

Domestic and agricultural water demands areexceeding the natural environment’s capacity tobalance water abstractions through natural rechargeof surface water reservoirs and aquifers. Variousstudies and authorities argue that Almería’s presentrate of water consumption is incompatible with naturalrecharge, and, without steps to increase watersupplies and/or reduce water demands, these long-term annual deficits cannot be sustained. Acombination of factors explains why Almería’s waterdemands reached this condition and continue to rise:a) evolution of agriculture production, b) a long-standing problem of uncertainty concerning availablewater resources, c) water tariffs often based onconsumption and typically small compared to agrower’s other operating expenses, d) the land areaunder irrigation in Almería is increasing, and e) agrowing urban population and tourist development areplacing increasing demands on available waterresources and competing with the agricultural sectorfor existing and future water resources.

Water has been a vital ingredient in Almería’seconomic development. In recent years, Spain hasundertaken a fundamental shift in policy from largeinter-basin transfers to desalination as a means to

meet present and anticipated water deficits. Inthis context, desalination has been seen as alogical and relatively quick solution to meetprovincial needs. Desalination provides Almeríaindependence from climatic influences (such asdrought and climatic change), providingconfidence for investors. The emphasis ondesalination, however, is not immune fromenvironmental criticism.

In the literature, desalination costs are describedmainly for industry and drinking-water uses,although for high-value intensive agriculture use,such as Almería’s agriculture, they are within therange. For large plants (more than 5,000 m3/day)seawater distillation plants presents productioncosts that range from 0.75 to 1.1 Euro/m3. In thecase of reverse osmosis applied on seawater, theproduction costs are more than 0.80 euro/m3 forsmall plants (up to 500 m3/day), between 0.75and 1.1 euro/m3 for medium plants (500–5,000m3/day), and less than 0.75/m3 for large plants.On the other hand, reverse osmosis applied onbrackish water implies a production cost less than0.4 Euro/m3. Current trends show that distillationcosts are falling because of economies of scale(large plants), while reverse osmosis costs aredecreasing more rapidly because of newtechnology developments, competition, andeconomies of scale. In any case, expertsrecommend that each specific case be studiedcarefully before selecting the desalinationtechnology.

Although local market conditions will determinethe most suitable desalination technology for eachzone, it is clear that the reduction in desalinationcosts per unit of production reached by reverseosmosis plants will generate worldwideimplementation of this membrane system toproduce desalinated water, mostly for watersupply in water scarce areas or in high valuetourism developments. For general irrigationpurposes however, long-term solutions would stillrequire good management of existing waterresources, both surface and groundwater, due to

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the cost increase that the use of desalinated waterwould impose. However, in zones with structuralwater deficit, as is the case in southeast Spain andthe Mediterranean river basin in general, waterdesalination systems (particularly those based onreverse osmosis) appear to be a technically andeconomically viable alternative. This is especiallyvalid in zones that produce high-value crops suchas Almería. The gross production value of high-value crops for exports in Almería, such as fruitsand horticultural products, covers the costs ofdesalinated water used in irrigation of theseproducts. However, it is important to point out thatAlmería’s total agricultural production is noteconomically feasible with the exclusive use ofdesalinated water. The cost of using onlydesalinated water for total production is 2.800€/ha on the average while agricultural rents inAlmería are 1.500 €/ha on the average.

By extending the natural boundaries of the riverbasin to include the conceptually limitless capacityof the Mediterranean, desalination provides thevery real potential for aquifer recovery. However,aquifer recovery will only be possible with effectivepricing to ensure that desalinated water isaffordable relative to conventional resources. Thiswill be achieved by a combination of subsidizingthe price of desalinated water to consumersrelative to conventional water resources, or raisingthe price of conventional water resources in linewith the real cost of desalination.

Although authorities emphasize the environmentalcompliance of desalination plants, thegovernment’s policy commitment to desalinationis not immune from environmental criticism.Despite improvements in the efficiency of reverseosmosis technology, desalination still requireslarge amounts of energy. Energy costs are thesecond highest cost component after theamortization costs of the facilities themselves andare between 15.5 and 20.1 percent of thedesalted water costs. For example, in the CanaryIslands, seawater desalination accounts for 14percent of all energy demands. The desalination

facility at Carboneras consumes 500,000 kWhper day. This energy requirement representsapproximately one third of Almería’s electricalenergy consumption. By choosing desalinationinstead of large inter-basin transfers, thegovernment is exchanging very tangible andimmediate forms of environmental impacts (thatcan be readily quantified) for the less tangible (andperhaps less accountable) environmental impactsof additional energy production.

Political will to comply with energy emissiontargets (Spain is a signatory to the Kyoto Protocolto the United Nations Framework Convention onClimate Change) may change to the point that thereal cost of producing the energy needed toprovide desalinated water may rise and so lose thecompetitive advantages over alternative watersources. Technological innovation may providealternative and cheaper sources of energy. Forexample, given Almería’s climate, it has hugepotential for solar energy desalination facilities andEuropean Union–-funded field trials are beingconducted in Almería to investigate the technicaland economic limitations. However, solardesalination is not yet developed at an economicallevel to compete with existing reverse osmosisdesalination and remains, at present, better suitedto small-scale facilities.

Desalination technology developments have alsotaken place in other areas around the world.Reverse osmosis technology is also used in otherregions around the world as well as in Spain,including the Gulf (Saudi Arabia, Kuwait, Oman,and United Arab Emirates), where energyconsumption is not a critical factor due to excessoil production and desalination has developedusing thermal processes. The region has becomethe world leader in desalination over a few years,in terms of production volume. Likewise, there arealso similar models in different parts of the world,such as in Egypt, different areas of the Caribbean,and many arid and costal zones around the world,such as Cyprus (Dekelia or Limassol), the UnitedStates (Tampa), Chile (Antofagasta), Philippines

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(Cebu), Singapore (Tuas), Morocco (Layounne),and Algeria, among others. The reason is verysimple. Nowadays, desalination is a viabletechnology that not only guarantees a continuoussupply but also has a production cost that,although it varies from location to location, hasbecome a competitive option in many coastalareas. Nearly all international projects (withexceptions due to the technical specifications ofthe project such as the intakes, pumps, or localfinancing) operate at about 0.6 to 0.8 Euros percubic meter, which includes the investment forplant construction and the operation of the plantover its life cycle (20–30 years).

3.3 Background to the EbroValley and Almaria Visits:Economic and FinancialConsiderations

Some background to the Ebro Valley and Almeríatechnical visits is helpful in examining the twomodels of water resources management (Donoso2009). Additional information is also included inAnnex A.5):

• In 2005, Almería’s GDP was approximately13,200 Euros per hectare, while Ebro’s GDP is7,900 Euros per hectare. Spain’s GDP isapproximately 16,000 Euros per hectare.

• A comparison of agricultural, livestock, andfisheries production values of Ebro Valley andAlmería with those of Spain, France, Belgium,and Denmark, shows that:

— While the agricultural, livestock, and fisheriesproduction value of Ebro represents asignificant percentage with respect to that ofBelgium and Denmark, it is less significant withrespect to Spain’s or France’s agricultural,livestock and fisheries production value.

— Almería’s agricultural, livestock, and fisheries

production represents 46.0, 39.7, 5.0, and 3.7percent of the agricultural, livestock, andfisheries GDP of Belgium, Denmark, Spain,and France, respectively, in the period 2000–05. This is a lower percentage of thesecountries’ agricultural, livestock, and fisheriesGDP than Ebro Valley.

• The annual infrastructure investments are sharedby basin organisms or ConfederacionesHidrográficas and by the General Bureau ofWater (Dirección General de Aguas). The CHsinvested a total of 10,510 million Euros in 2003,while the General Bureau of Water invested13,643 million in the same year. The GeneralBureau of Water has significantly reduced theamounts invested; its 2002-–03 investment was85 percent of its 1997 level. In the Ebro Valley,the basin organism’s share of investments hasincreased from 4.6 percent of the total in 1997to 43.5 percent in 2003.

• The share of the investments made by the basinorganisms in the Andalucía Mediterraneanbasin11 increased from 4.9 percent in 1997 to96.0 percent in 2003, although the amountinvested averages 12,800 million Euros eachyear, because the amount the General Bureauof Water invested declined substantially duringthe period 1997–2003. Between 2002 and2003, for example, the amount invested by theGeneral Bureau decreased 89 percent, goingfrom 21,218 million Euros to 2,233 million. Inthis context, the basin organisms invested a totalof 54,127 million Euros in 2003, while theGeneral Bureau of Water invested only 2,233millions.

• Regarding cost recovery, a comparison betweenthe Ebro Valley and the Andalusia Mediterraneanbasin shows that:

— The Ebro Valley has a total irrigation cost of

11. Since there is no available information for the Almería proper, the Andalucía Mediterranean Basin figures are presented asproxies. It should be noted, however, that Almería is a region of Andalucía and thus the data must be interpreted accordingly.

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175.4 million Euros and total irrigation incomeof 156.1 million Euros, resulting in a costrecovery ratio of 80 percent. In the AndalucíaMediterranean basin, the total irrigation costis equal to 12.5 million Euros and the costrecovery share is 92.1 percent.

— Regarding payment for irrigation services, inthe Ebro basin they reach 62.2 million Euroswhile the total costs of the services equal 67.2million Euros. Consequently, the subsidy is4.9 million Euros. In the Andalucía basin, thetotal payments for services equal 250.5million Euros, covering almost 100 percent ofthe services costs.

— With respect to the recovery share of surfacewater extraction, storage, and transportationcosts, the Ebro Valley shows a total cost of34.2 million Euros and a total income of 24.9million Euros. Consequently, the Ebro’s costrecovery share is 72.8 percent. In theAndalucía Mediterranean basin, the total costsare 21.5 million Euros and the cost recoveryshare is 50.0 percent.

• The irrigation methods used in the Ebro andAlmería basins differ (Table 3.1). In the Ebro,the main irrigation method is gravity, while inAlmería it is localized (drip). In large part, thisreflects different agricultural productionsystems: in Almería, the greenhouse productionis predominant, while Ebro has more open fieldproduction systems.

.• Most areas irrigated by flood systems have an

average irrigation efficiency of 51.3 percentwhen it is inadequately implemented and 78.7percent when adequately implemented. Dripirrigation systems have 94 percent efficiency(Donoso 2009).

3.4 Canal de Isabel II:Comprehensive Water CycleManagement 12

Canal de Isabel II is one of the oldest utilities in theworld. Unlike many, it manages the full water cycle.It started in 1851 with the transport of water fromthe Lozoya River to Madrid by a 70 km canal thatwas named “Canal of Isabel II” honoring the Queento serve a Madrid population of 220,000 inhabitants.It became a public utility in 1977; today it is aprofitable public holding that belongs to the Madridregional autonomous government (Comunidad deMadrid), serving nearly six million people.

Canal de Isabel II provides comprehensive watercycle management throughout the Madrid region:water collection, purification and qualitysurveillance, transport, distribution, wastewaterpurification, sanitation, and managed reuse ofsome of the purified water for secondary supplyuses. Organizationally, Canal de Isabel II is underthe office of the vice-president of the Comunidad.

Since the rivers within the Comunidad have verylimited dry season flows, Canal has built onestorage reservoir after another. Unlike other urbanregions, the Comunidad de Madrid has theadvantage of having all of its water sources, bothsurface and groundwater, within the limits of its

12. This Section is from Ortega and Pizarro (2008), Canal de Isabel II (2006), and Canal de Isabel II (2008).

Table 3.1 Percentage of Irrigation Methods Used in the Ebro Basin and Almeria

Basin Sprinkler Gravity Localized (Drip) Other Method

Ebro 19 69 11 1

Almeria 1.52 23.50 74.67 0.28

Source: Donoso 2009.

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own jurisdiction. The company distributes a total of620 hm3 of water per year, for which it uses twosources: surface waters from seven rivers in theGuadarrama mountains (stored in 14 reservoirswith a total capacity of 946 hm3) and groundwaterextracted from the main two aquifers in the Madridregion (using 81 facilities distributed in six wellfields, capable of delivering a nominal flow of5m3/s). Canal also operates four small diversiondams. Despite the rapid increase in populationthat the Comunidad has experienced in recentyears—basically due to immigration—it has beenpossible to meet growing demand thanks tocontinuous awareness campaigns promotingefficient use of water.

The water is treated at 11 treatment plants, with amaximum treatment capacity of 43.5 hm3 per day;the oldest plant became operational in 1967.Although the quality of the water obtained isexcellent and regulations on drinking water areamply complied with, Canal de Isabel II is graduallyrefurbishing the treatment plants, incorporatingmore advanced treatment processes such asactive carbon filters, and increasing the capacity.In these plants, raw water is subjected to a seriesof linked processes depending on thecharacteristics of the water to be treated. Theusual sequence in that process is pre-oxidation,coagulation or flocculation, sedimentation,filtration, neutralization, and final disinfection.

The distribution network managed by Canal deIsabel II has large conduits, regulating tanks, andelevating stations. The large conduits are essentialin guaranteeing water flow conveyance in thecentral part of the region during peak consumptionperiods. Linked in the form of a ring, theseconduits connect the large canals running from theLozoya-Jarama rivers with those from theGuadarrama-Alberche rivers providing redundancyto the system. In a region like Madrid, waterconsumption undergoes strong fluctuationsaccording to the time of day, on weekends, andduring major events. In order to adapt the supplyto the daily fluctuations, Canal de Isabel II has 22

large-capacity regulating tanks with a totalcapacity of 2.6 million cubic meters. In addition,the utility company has 240 smaller-capacitytanks.

Canal de Isabel II has 18 elevating stations, andthe network it manages has a total of 14,136 kmof conduits with diameters between 50 millimetersand 2 meters. Of this total, 4,000 km correspondto the city of Madrid. The objective of Canal deIsabel II is to achieve a network in which none ofthe pipes is older than 25 years, which requiresthe renovation of hundreds of kilometers ofpipeline each year.

Canal has 30 automatic surveillance stations(ASSs) installed at the outlet of the watertreatment plants, large regulating tanks, andimportant junctions in the supply distributionsystem. After sampling and analyzing the water,the ASSs send the results in real time to the maincontrol centre in the head offices through its in-house communications network. Canal de Isabel IIhas also implemented a remote control system forpermanent monitoring of the hydraulic network,which comprises more than 11,640 measuringinstruments situated throughout the region. Thissystem provides real-time data on the hydraulicsituation of the utility’s network, quality of thewater, groundwater availability, purification plants,and other installations.

As a public institution, Canal has entered into inter-administrative agreements with all the localgovernments in the Comunidad. In 2006, Canalde Isabel II was entrusted with the technical andcommercial management of the purification andsewerage services in the Madrid municipality, witha total of 3,500 km, plus 43 other municipalitiesthat add another 485 km to the network.Practically 100 percent of the wastewater in theComunidad has secondary treatment, using 146wastewater treatment plants using all types oftechnology. A series of treatment stations arebeing outfitted for tertiary treatment, so as toproduce some 40 hm3/ year of wastewater of

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adequate quality for re-use in the irrigation of6,000 hectares of parks and gardens that are fullyautomated and managed from a central control,sports facilities, and street cleaning. Canal alsooperates seven mini hydro plants that produce 54million Kwh, mostly for its own use through a 250km network that distributes the energy to itsprincipal installations.

One of Canal’s objectives is to recycle as muchwaste as possible, such as treatment plant sludge.Canal has implemented a Self-Control Plan whichallows it to verify the efficacy of the measures andmechanisms implemented to guarantee both areduction in hazardous waste production and itscorrect management, in compliance with legalrequirements. Not including the purificationinstallations of the Madrid municipality, Canal deIsabel II also manages 313 hectares of greenareas, of which 193 hectares are landscaped.

The continental climate that affects theComunidad de Madrid means that it facesrecurrent droughts. To address this situation,Canal has created the so-called “Drought Office,”which administers resources as efficiently aspossible based on existing reserves. For the timebeing, restrictions on human consumption havenever been implemented, but there have beenrestrictions on the irrigation of parks and publicand private gardens. Due to an awareness-raisingcampaign, “Súmate al reto del Agua” (Join the

Water Challenge), consumption decreased by 9.3percent relative to 2005, to 553.2 hm3, similar tothe 1990 level despite an increase in population.According to the Hydrological Plan of the TajoRiver basin, in whose territory the Comunidad issituated, when reserves are greater than 60percent, Canal is required to release water tomaintain the ecological flow of the rivers. Thisgeographic area is fundamentally urban; since theagriculture sector is such a minor element, thereare no conflicts over the distribution of waterresources between these sectors.

Pricing varies by consumption levels andseasonality as well as by types of users as astrategy to foster rational use and efficientconsumption of water in order to adaptconsumption needs to the supply system’scapacity and reach an adequate economic andfinancial balance in the provision of the service.The pricing system ensures the sustainability andvalue of the service by progressively adapting thepurification price to costs.

Canal created the position of CustomerOmbudsman in 2001 to act as mediator betweenthe consumers’ complaints and the company. Allcustomers who have filed a claim and do notreceive a reply within a maximum period of twomonths or who are not satisfied with the reply theyreceive, can request ombuds services.

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Bank participation in Expo Zaragoza 2008 was amutually beneficial experience. On the one hand, itallowed for representatives from the clientcountries to get a first-hand look at Spain’s longand rich history of water management and howparticipatory institutions like the hydrographicconfederations of the “Spanish Model” havehelped to meet water demands and to cope withclimatic variability. On the other hand, theparticipation of Bank staff and representatives ofclient countries enriched the experience exchangeamong the many participants in the Water Tribune.Additionally, the video sessions organized by theWorld Bank Institute with the participation ofGlobal Development Learning Network centersaround the world contributed to making ExpoZaragoza a truly world-wide event.

4.1 A Common Challenge

On the one hand, water-related problems arebecoming more acute as a result of bothincreasing population and growing demands forvarious uses of water. Various stakeholders’interests conflict, and competing demands forwater supply and sanitation, energy and foodproduction, as well as other uses such asnavigation, are occurring at the same time thatwater quality is deteriorating. On the other hand,evidence is growing that climate change is alreadyoccurring and given its transversal effect, climatechange impacts on water resources will affect theoverall economy. As a result, current water-relatedproblems (in terms of water scarcity, quality

deterioration, frequency of droughts and floods)will become more acute. Despite the uncertaintieswith climate change and its impacts on thehydrological cycle, water managers areencouraged to incorporate climate change intocurrent water resources planning in the context ofvulnerability assessment and risk management toimprove water resources management.

Overall management of water resources requiresa system that allows for active participation fromusers, as well as a system in which reliable, user-friendly, hydrological information that monitors thestocks and flows of water plays a key role inresolving various conflicts of interests. TheSpanish river basin organizations have been ableto play a critical role in sustainable waterresources management, but it is clear that theseinstitutions cannot becomefunctional and efficientfrom one day to the next. They have evolved overseveral decades. Also, it is not sufficient toestablish a river basin organization with a strategicvision, normative and financial autonomy, anddecision-making structures with stakeholderinvolvement. It is also necessary that theseorganizations give solutions to the immediatesocioeconomic problems being faced and havestrong support from central and subnationalgovernments and the private sector for their long-term strategy. This acquires special relevance inthe management of shared water resources,where the sharing of benefits is somewhat newand is now being explored and considered amongneighboring countries.

CONCLUSIONS AND LESSONS LEARNED 4.

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Water Supply and Sanitation

About the best approach for extending thebenefits of safe and reliable water supplies andadequate sanitation to the greatest number ofpeople in the world, much has been said, written,and discussed. Significant advances have beenachieved. Many efforts toward restructuring andmodernization of the water supply and sanitationsubsector have been made and the roles of boththe public and the private sectors have gonebetween both extremes of the pendulum swing.Nevertheless, eliminating or minimizing the gap inwater access seems to elude even the best efforts,and there is no clear path in sight, although public-private partnerships seem a viable option. Thegeneral pragmatic conclusion is that more is betterthan less, but little is better than nothing andefforts should continue.

Regarding water and sanitation utilities, oneaspect that merited discussion was that of useraccountability as a means to an end. Suchaccountability can trigger reform processes in therelationship between citizen and state and serviceproviders, creating a favorable environment forfinding sustainable development solutions. It seeksa subtle objective of instilling and maintainingappropriate cultures within utilities, and increasingthe satisfaction and building the trust of the users,as well as enhancing users’ ability to interact withthe utility effectively.

Energy

Emerging global dynamics are rewriting the roleand value of hydropower in development.Increasingly, its potential contribution to a complexweb of energy security, water security, andregional integration are being recognized. As partof that web, hydropower is a readily accessiblecore element in mitigating and adapting to climatechange. The sector’s burden of risk is both realand perceived. The international community has

made good progress in managing many riskissues, particularly in environment and socialinclusion, but confidence remains fragile andimplementation is challenged by weak capacityand institutions. Scaling up hydropower is notlimited by physical or engineering potential. Rather,the challenges lie in defining hydro’s strategic rolein each country/basin and bringing adequateresources, knowledge, and skills to realizing itsvalue. Finally, focusing on policy discussions,integrating across players, and facilitating goodpractices can assist in scaling up public andprivate investments.

Food Security

Irrigation has an important role to play inaddressing food security. However, it is notsufficient to promote and support the use ofimproved irrigation technologies to increaseefficiency in the use of water for irrigation andproductivity of irrigation water. It is also necessaryto have strong institutions for allocating andmanaging water resources, for controlling wateruse, and for imposing sanctions; to providetechnical assistance in the adoption of improvedtechnologies and use of water; to facilitateprovision of commercialization services to helpreduce transaction costs and access markets; andto improve irrigation infrastructure to ensure morereliable supplies at the farm level. Irrigation systemmodernization needs to focus on both physicaland operational aspects. Good water level controland communication facilities are essential to goodirrigation management. In particular, there is aneed for good water balance assessment, goodunderstanding of internal system processes, andhigh flexibility in water delivery arrangements. Atthe same time, it is important not to lose sight ofthe fact that agricultural water management goesbeyond irrigation, including water management ofrainfed agriculture, which produces the bulk of theworld's agricultural production.13

13. Of the 1.5 billion hectares of cropland worldwide, 82 percent is rainfed (FAO 2006). In developing countries, rainfed agri-culture accounts for 60 percent of agricultural production (World Bank 2006).

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Technology Innovation

Water scarcity is increasing in many parts of theworld due to growing populations, greater percapita water demand, and diminishing freshwatersources (a result of drought conditions,desertification, and other ecosystemdegradations). Desalination was previouslyregarded as a prohibitively expensive solution, butdramatic cost reductions have led potentialcustomers to view it more favorably. Technologicalinnovations have greatly increased the energyefficiency of the desalination process and reducedoperation costs. Desalinated water is becomingmore competitive for urban uses and could be putto conjunctive irrigation use provided there is ahigh value user (such as tourism) that can beutilized for cross subsidies. In general, however,the cost of desalinated water is still too high forfull use of this resource in irrigated agriculture, withthe exception of intensive horticulture for high-value cash crops such as vegetables and flowers(mainly in greenhouses) grown in coastal areas.Reverse osmosis is the preferred desalinationtechnology because of the cost reductions drivenby improvements in membranes in recent years.

4.2 Highlights of the Spanish Experience

The Ebro Hydrographic Confederation (CHE)territory presents notable morphologic andclimatologic variability. Its most importantcharacteristic, in terms of water use, is the existenceof an extremely arid central area (along the Ebrovalley) with soils potentially suitable for agriculturaldevelopment. Effective cooperation between thepublic and private sectors, particularly in irrigationfinancing, has been a key factor in the developmentof large water-related infrastructure in the Ebrobasin as well as in Almería, where technologicalprogress and innovations have been greatlymotivated by water scarcity.

The irrigation sector is the main user of water. Ithas been a dynamic sector that defined water

policy during the last century, by emphasizingpublic sector construction of infrastructure andproviding farmers with an unlimited supply of waterat a low price for farmers. Since the 1970s, theirrigation sector has provided an efficient responseto structural changes in markets by diversifyingproduction and integrating new activities. Irrigationmodernization plans allow further adaptation of thesector, responding to the need for more technicalfarming methods to achieve additional costsavings and helping to calm tensions arising fromsociety’s greater environmental awareness and theperception that irrigators use water resourcesbadly. The effect of the financial cost ofmodernization on farm economies remains to beseen, although it is foreseeable that a largerproportion of the modernization costs will comefrom public administration budgets.

Although the potential effects of climate changeon available water resources in the CHE territoryare yet to be determined, steps are being taken toextend supply guarantees, both by increasingregulatory capacity and by improving watermanagement and allocation systems. In theformulation of the Hydrologic Plan, decisionmaking has been reinforced by a broad processof public participation that has achieved greaterawareness among the general public (includingdirect users) of the consequences of climatechange and greater acceptance of the proposals.

Almería provides an example of thesocioeconomic problems that can be encounteredin semi-arid areas with groundwater aquifers thatcan be easily exploited. Although the constructionof desalination plants and their excellentmanagement is a step in the right direction toreduce pressure on the aquifer, an integratedapproach to managing groundwater, desalinationwater, and surface water is badly needed forreducing overexploitation. The Almería modelprovides small farmers with technical assistanceat three levels (at the farm, to meet EuropeanUnion phytosanitary regulations, and for marketingpurposes) and can provide interesting lessons for

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projects in other countries that merit beingreviewed in greater detail.

A demand management approach followingcriteria set out by the European Water FrameworkDirective could be used to improve water useefficiency in both Ebro Valley and Almería province.The relatively low water prices do not align theeconomic incentives and foster wastefulness in amarket in which the resource is rationed and hasa quota assigned by the water administration.Agricultural water prices could be maintainedbelow prices paid by other users or could beincreased to solve serious scarcity problems. Thelatter scenario will have negative effects onfarmers’ rents that may require compensation. It isimportant to note, however, that Almería’s GDP isalmost double that of the Ebro Valley. Regardingcost recovery, the Ebro Valley has a cost recoveryshare of 89 percent; in the AndalucíaMediterranean basin, the cost recovery share is92.1 percent.

Also worth mentioning is the bold step taken bythe Spanish government in pledging itscommitment to desalination as a means to balancewater budgets in the Spanish Mediterranean, but

other nations may need to proceed with cautionbefore adopting the Spanish policy. Investmentcosts are huge and may only be sustainable if theadded economic prosperity this water affords aregion in the long term is sufficient to offset theproject funding. Moreover, desalination mayprovide tangible environmental benefits over inter-basin transfers as a means of meeting waterdeficits, but their energy requirements and wastedischarges cannot be ignored. A parallelcommitment to water demand managementthrough water tariffs is prudent to encouragerecovery of degraded natural water reserves.

The Canal de Isabel II is noteworthy among watersupply and sanitation utility models for itscomprehensive water cycle managementthroughout the Madrid region, providing watercollection, purification and quality surveillance,transport, distribution, wastewater purification,sanitation, and managed reuse of some of thepurified water for secondary supply uses. Anotherfeature of interest in this utility is the position ofCustomer Ombudsman, created in 2001 to act asmediator between the consumers’ complaints andthe company.

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Abicalil, Marcus Thadeu. 2008. Ciclo Urbanodel agua en las ciudades del futuro. ThematicWeek on Water and Cities: Local Governments,Governance and Urban Development, WaterTribune, Expo Zaragoza 2008. http://www.e-waterexpo.net.

Bengoechea, Ventura. 2008. Water Access inSub-Saharan Africa; Challenges andOpportunities. Thematic Week on Water for Life:Health, Quality of Life and Environment, WaterTribune, Expo Zaragoza 2008. http://www.e-waterexpo.net.

Canal de Isabel II. 2006. Memoria de gestión ycuentas anuales de 2006. Madrid.

Canal de Isabel II. 2008. We are about Water(Cuidamos el Agua). Publication and CD.Madrid.

Cestti, Rita E. 2008. "Practical Solutions toWater Challenges: Learning from the SpanishExperience." Summary of a study tour to Spain.Back to Office Report (BTOR). Latin AmericaRegional Office, Water Team, World Bank,Washington, DC.

Chen, Guang Z. 2008. A Global Perspective onWater Supply and Sanitation: Current Situation,Challenges and Future Ttrends. Thematic Weekon Water Supply and Sanitation, Water Tribune,Expo Zaragoza 2008. http://www.e-waterexpo.net.

Contijoch, Manuel. 2008. Sistemas de RiegoColectivos. Thematic Week on Land and Water:Land Use Planning and Agriculture, WaterTribune, Expo Zaragoza 2008. http://www.e-waterexpo.net.

Darghouth, Salah. 2008. Irrigation and FoodSecurity: Beyond the Food Price Hike Crisis.Thematic Week on Land and Water: Land UsePlanning and Agriculture, Water Tribune, ExpoZaragoza 2008. http://www.e-waterexpo.net.

De Jong, IJsbrand. 2008) Irrigation in Africa:Challenges and Opportunities. Thematic Weekon Land and Water: Land Use Planning andAgriculture, Water Tribune, Expo Zaragoza 2008.http://www.e-waterexpo.net.

Dingamo, Asfaw. 2008. Scaling Up Agricultural-Water Development in Africa. Thematic Weekon Land and Water: Land Use Planning andAgriculture, Water Tribune, Expo Zaragoza 2008.http://www.e-waterexpo.net.

Donoso, Guillermo. 2009. Agricultural andWater Use Characterization of Almería Provinceand Ebro Valley. Water Anchor in the Energy,Transport and Water Department (ETWWA),World Bank, Washington, DC.

FAO (Food and Agriculture Organization of theUnited Nations). 2006. "Water for Food,Agriculture and Rural Livelihoods.” Chapter 7 inWater—A Shared Responsibility. The UnitedNations World Water Development Report 2.Paris: UNESCO (United Nations Educational,Scientific and Cultural Organization).

Fall, Matar. 2008. Reforming Water Utilities inWestern and Central Africa. Thematic Week onWater Supply and Sanitation, Water Tribune,Expo Zaragoza 2008. http://www.e-waterexpo.net.

Fernandes, Erick. 2008. The WorldDevelopment Report 2007: The Future ofAgriculture. Thematic Week on Land and Water:Land Use Planning and Agriculture, WaterTribune, Expo Zaragoza 2008. http://www.e-waterexpo.net

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Freire, Mila. 2008. Cities, Water andDevelopment: Insights from World BankExperience. Thematic Week on Water andCities: Local Governments, Governance andUrban Development, Water Tribune, ExpoZaragoza 2008. http://www.e-waterexpo.net.

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Practical Solutions to Water Challenges:Learning from the Spanish Experience

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