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Environmental and Water Resources Management ENVIRONMENT STRATEGY PAPERS NO. 2 Environmental and Water Resources Management Rafik Hirji Hans Olav Ibrekk October 2001 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Manufactured in the United States of America First printing October 2001 In 2001, the World Bank completed the comprehensive two-year process of preparing its Environment Strategy, Making Sustainable Commitments: An Environment Strategy for the World Bank. It was endorsed by the Bank’s Board of Directors and published in October 2001. Several background papers were prepared and published by the Bank’s Environment Department to stimulate constructive dialogue and intellectual discussion on a range of issues within the Bank as well as with client countries, partners, and other interested stakeholders. The Environment Strategy Paper series includes revised versions of Environment Strategy background papers, as well as new reports prepared to facilitate implementation of the Strategy. This series aims to provide a forum for discussion on a range of issues related to the strategy, to help the transfer of good practices across countries and regions, and to seek effective ways of improving the Bank’s environmental performance. Contents v Preface vii Acknowledgments 1 Executive Summary 7 Chapter 1: Water-Environment-Poverty Linkages 7 Background 10 Sustainable Water Resources Development and Management 11 Poverty Alleviation 11 Notes 13 Chapter 2: Global Trends Relating to Water and Environmental Management 13 Three Profound Changes in Thinking 14 Changing Role of the Public and Private Sector 14 Key Threats 20 Key Challenges 25 New and Emerging Opportunities 25 Notes 27 Chapter 3: Global Lessons from Bank Experience 27 What Has the Bank Been Doing? 28 Lessons Learned 37 Chapter 4: Strategic Framework For Action 37 Adopt Clear Framework for Environmentally Sustainable Water Resources Development 38 A Comprehensive Approach to Water Resources Management 38 Mainstream Environmental Issues in Water Resources Planning and Management Decisionmaking 40 Environment Uses of Water 40 Water Quality and Pollution Management iii Environmental and Water Resources Management 40 Climate Change Adaptation and Mitigation 43 Chapter 5: Way Forward 43 Develop Human Resources 44 Analytical Work 45 Strategic Partnerships 46 Indicators Annexes 49 Annex A: Regional Water-Related Environmental Priorities 53 Annex B: Linkages Among Water, Environment, and Dimensions of Poverty 55 References 57 Color Graphics Boxes 5 Box A. Overall assessment 11 Box 1. Sustainability outcomes for water use 15 Box 2. Water pollution and human health 16 Box 3. Challenges for managing groundwater contamination 17 Box 4. Impact of poor land use on Mombasa water supply infrastructure 18 Box 5. Impacts of poor drainage 19 Box 6. Problems caused by Water Hyacinth 24 Box 7. World Commission on Dams: Priorities for sustaining rivers and livelihoods 28 Box 8. Key environmental findings of OED’s evaluation of the implementation of the Water Resources Management Policy of 1993 28 Box 9. Environment and poverty alleviation objectives of Water Resources Management Policy 31 Box 11. Integrating environmental and social considerations in power sector planning in Nepal 33 Box 12. Strategic Partnership for Nutrient Reduction in the Black Sea/Danube Basins 34 Box 13. Environmental flow assessments for the Lesotho Highlands Water Project 35 Box 14. Overall assessment 46 Box 15. Suggested indicators Tables 11 Table 1. Linkages between water, environment, and poverty Figures 7 Figure 1. Water and water-based ecosystems values 8 Figure 2. Water-stressed and water-scarce countries: 2025 projections 23 Figure 3. Wastewater generated and reused in selected countries iv Environment Strategy Papers Preface o improve the management of water The paper is based on a review of regional sector investments, the World Bank is environment strategies (prepared for the T preparing a Water Resources Sector Environment Strategy), on a review of the water Strategy, and to enhance the main-streaming of sector portfolio and country focus studies (done the environment in Bank investments, the Bank for the Water Resources Sector Strategy), and is preparing an Environment Strategy. This on consultations with other sector boards and background paper is the Environment Depart- Bank staff. ment’s contribution to both these efforts. It focuses on the environmental sustainability of Chapter 1 outlines water-environment and water-related investments and policies sup- poverty linkages. It identifies the six dimensions ported by the Bank and evaluates how effec- of poverty and how environment and water tively the Bank is integrating environmental management are related to each other. It also quality objectives in water resources planning presents a possible set of sustainable outcomes and management. for the water sector. Chapter 2 addresses emerging global trends related to water and A second objective of this paper is to review environmental management. Chapter 3 summa- the World Bank’s efforts to mainstream the rizes lessons from Bank experience. Chapter 4 environment in its lending and non-lending presents the implications for the Bank in terms water resources activities and operations, and of a strategic framework for action, and Chapter to draw lessons for enhancing the environmen- 5 considers how to support implementation of tal sustainability of water sector investments. the strategic framework. v Acknowledgments his paper was prepared by Rafik Hirji the World Bank and Deborah S. Rubin from and Hans Olav Ibrekk of the Environ- Cultural Practice. Guidance was provided by T ment Department with support from the Water Supply and Sanitation Sector Board Walter Garvey, David Hanrahan, Nagaraja Rao and many Bank staff during the preparation and Harshadeep, and Stephen F. Lintner of the review process, including Inger Andersen, World Bank, and Alfred Duda of the Global Mohamed Bekechi, Greg Browder, Jack Fritz, Environment Facility. The paper also benefited Jose Furtado, Agi Kiss, Magda Lovei, Andrea from comments on early drafts provided by Merla, Douglas Olson, Robert Robelus, Kate John Briscoe, Franklin Cardy, Salah Darghouth, Stevens, and Heinz Unger. John Shepherd, and Lee Sumter Travers from vii Executive Summary his paper reviews the World Bank’s freshwater biodiversity on which people, efforts to mainstream the environment in especially the poor, often depend directly. T its lending and non-lending water Hence, it is essential to maintain the stability, operations. It is also intended to inform ongo- health, and productivity of the water resources ing Bank efforts to prepare a Water Resources system. Sector Strategy and an Environment Strategy. The paper summarizes lessons from past and A Systemic Water Crisis. Over the past several ongoing practice and recommends a strategic decades, food production as a result of the framework for enhancing the environmental green revolution has improved dramatically, sustainability of water sector investments. It is and access to drinking water expanded for 2.4 based on a review of regional environment billion people, while access to sanitation strategies, on the water sector portfolio and facilities improved for 600 million since 1980. country focus studies, and on consultations The world, however, continues to experience a with other sector boards and Bank staff. systemic water crisis as a result of unsustain- able use and management of water resources The Resource Base. The water resources due to poor social, environmental, or economic system—consisting of water (in rivers, aquifers, policies and actions. At the same time, there is and lakes) and land- and water-based ecosys- a need to increase water supplies and services tems (watersheds, wetlands, and floodplains)— to needy populations in an environmentally is essential for the sustenance and health of all sound manner. Traditional problems concern- species. The resource provides services with ing the provision of water supply and sanitation many direct, indirect, option, and non-use services in urban and rural areas will require values. As a source of natural capital, it is a concerted efforts: more than a billion people do primary input for a whole array of human not have access to potable water supply and 3 needs and economic development activities. As billion do not have adequate sanitation. With a a sink, it is used as a receptor for wastewater rapidly increasing population, the problems of discharges. Fresh water sustains the integrity of food security and growing demand for water to the ecosystems that serve important ecological generate electricity, meet domestic supply, and and hydrological functions and as hubs of support industrial development persist. 1 Environmental and Water Resources Management New Threats. The water sector faces new The potential hydrological, ecological, and threats and challenges related to the local and economic consequences of these new threats basinwide degradation of water resources to the water sector are significant. They can system from water allocation conflicts, water threaten the ability of the water resource pollution, and land degradation, along with system to continue providing the basic hydro- similar issues at the transboundary level and logical and ecological services that traditional climate change considerations at the global services depend on; cause irreversible damage level. These will have a direct bearing on the to and further
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