Technical Assistance Final Report Project Number: 38594 August 2011 People's Republic of China: Strengthening of Water Resources Management in Guiyang Prepared for the Water Resources Bureau of Guiyang Municipality This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.) TA 4912 PRC --STRENGTHENING OF WATER RESOURCES MANAGEMENT IN GUIYANG (IWRM TOWARDS DEMAND MANAGEMENT) Final Report Part I June 27, 2010 Prepared by Team Dr. Daniel Gunaratnam (Water Resources and Water Demand International Specialist) Mr. Li Zhi (Rural Water and Project Implementation Specialist) Preface The Strengthening of Water Resources Management for Guiyang which is funded by TA 4912 PRC was undertaken from July 2009 till May 15, 2010. We would thank the Asian Development Bank for participating in this TA as it is a timely TA for China when water shortages have forced most cities, counties and provinces to rethink the whole requirement of integrated water resources management. There are very few options to rising demands in water and supplies are shrinking because of overuse. Demand management is probably the only way to match demand with very limited supplies. Lesson can be learned from many developed countries that have already gone through this phase of extremely limited water supplies and have to resort to demand management by water saving devices, recycling in industry, water reclamation, reducing water network losses and by other means. We would like to thank the Guiyang Municipality Water Resources Bureau for the assistance in providing some of the key documents and advice and discussion on the management aspects of water resources for the municipality. We would also like to thanks them for some of the translation services provided intermittently over the course of the TA. The work undertaken in the TA, apart from the Water Resources Bureau, is also from discussions with the Guiyang Municipality Bureaus such as the Urban Management Bureau, Urban Construction Bureau, and Water Saving Office, Water Supply Company and others. The Guiyang Water Resources Bureau had completed a major study by its Hydrology Bureau and the findings of the Study are contained in the report Guiyang Integrated Water Resources Planning by the Guiyang Hydrology Bureau in July 2007. The consultants found this report containing a vast amount of detailed information on integrated water resources management and on demand management. This report was written by Dr. Daniel Gunaratnam with assistance and inputs from Mr. Li Zhi for Chapter 7 and some assistance from Mr. Shen Dajun for some of the institutional arrangements. This report is Part I which focuses on integrated water resources management and demand management Part II of the report focuses for the IWRM project components i.e. on the Environmental Management, Water User Organization formation, training, and structure; financial management and institutional arrangements for the Project Management Office; and on the Yudongxia Reservoir Payment for Environmental Services. 3 Executive Summary The focus of this Technical Assistance was to focus on developing a plan to undertake Integrated Water Resources Management Plan and to shift the present system water resources supply management to demand management. Chapter one indicates the purpose of the report Chapter 2 of the report describes the special features of the water resources system in Guiyang Municipality. This chapter describes the socio economic context of the Guiyang Municipality. The Guiyang Municipality will have an increase of population from 3.8 million to 4.8 million from 2010 to 2030. The urban rural population split will be more marked in 2030 than presently. The urban population is 2.35million in 2009 and it will increase to 3.85 million in 2030. Rural population will decline from 1.5 million in 2009 to about 1.0 million in 2030 The economy will grow at an average of 11% from a Gross Regional Product of Y74 billion to Y193 billion (150% increase) in real terms. Urban per capita income will increase from Y19, 000 in 2009 to Y38, 000 in 2030. Water resources system will have tremendous challenges to meet the various demands made by the increase in population and the rapid economic growth. The present elasticity of demand for water to economic growth is about +.33, which means for every 1% growth there will be an increase of 0.33% increase in demand for water. For an average growth rate of 11% per year the demand for water will grow at 3.7% per year. This growth of demand for water is unsustainable and it needs to be controlled by demand management. Although Guiyang Municipality is in a relatively plentiful water resources area it is constrained by the fact there is no groundwater and there are limitations of reservoir storage sites. Because of these limitations of surface and groundwater storage it is only possible to use a maximum of about 33% of the water resources. In addition because of the entire area being in a Karsts area most rainfall penetrates into the ground and form part of the river flow in the downstream parts of the river basin. The total long term average of water resources of Guiyang is 4.5146 billion cum per year. The available water resources are 1.516 billion cum per year. The maximum sustainable water supply available is 1.306 billion cum per year. The present use of water in Guiyang Municipality is 1.042 billion cum per year. Guiyang will become a city of about 4.8 million by 2030 which will be the same size as the three international cities (Los Angelis, Singapore and Sydney) as examples for international experience. However Guiyang is using more water (by as much as 30- 40%) today than all these three international examples although the per capita incomes of these cities are about 20-30 times higher. It is extremely important to curb Guiyang Municipality’s high demand for a city which ha a much lower income per capita 3-5% of the three international cities and with industrialization which is so low. Several suggested methods of improving the efficiency of the water systems are proposed and discussed fully in chapter 6. 4 Chapter 3 discusses the international experience in IWRM and demand management. The three cities all suffer from a shortage of water for different reasons. Los Angelis City obtained a mandate after its contacts with Colorado system had expired and needed to undertake IWRM and demand management. The obtained permission by putting it IWRM on the ballot got the California Legislature to allocate money for IWRM. They then developed programs for demand management and all water development was focused on ensuring demand is matched with supply. Essentially they had a water saving program for residences, industry and business and provided rebates for people who adopted water saving devices. Residences had smaller toilet cisterns, shower heads that saved water and irrigation was controlled. In addition they had special programs to eliminate home outdoor irrigation by use of artificial turf. They drastically reduced the network losses to 4%. On the supply side they reclaimed water from wastewater for all non-portable use and enhanced supply by collecting storm water and runoff of the coastal areas and resorted to desalination for all additional water. In undertaking both supply side and demand side management they met all their future needs for water Sydney has a similar experience of first damming up all the river basins for water supply so that it had a firm yield of 600 million cum per year. But very quickly in early 2002 Sydney had very long droughts and the yield of the reservoirs became 20- 30% less than the earlier yield estimates. They also resorted to firm demand management programs of water saving indoor and outdoor for residences, for business and for industry. In addition they also recycled/reclaimed wastewater and reduced their network losses from 10.7% in 1999 to 7.5% in 2009. For future demand they had three sources: desalination, use of additional groundwater, and extracting water at lower levels in the reservoir. The overall effect is that they managed to meet all their demands from savings of water, reduction of losses and recycled water. Their future plan is to expand more water savings, continue reduce losses and recycling water and if these do not meet the demands it is expected they will develop the desalination plants, groundwater and draw deeply from the reservoirs. The key clearly is that they adopted IWRM principles and used demand management to match demand with supply. Finally in the case of Singapore the city state had to develop its supply of water from its own Island water resources. On the supply side Singapore developed supplies from rural catchment areas, from urban catchment which will ultimately be stored in deep tunnels, from reclaimed waste water for non-portable use and by developing desalinated water. Whereas Singapore relied 70 of its water coming from Malaysia the Island State now developed 90% of its resources on the Island. Simultaneously they had a very strong demand management program to reduce the water consumption levels through water savings. This resulted in per capita daily consumption declining from 175 liters/capita to 157 liters/capita. They also reduced the network losses to about 5% in 2009 from some 8% a decade ago. Singapore also met their obligation of water by both demand management and supply management. Overall all the three cities have first, one integrated group institution managing the water resources and thereby integrating the water resources management.