ENGINEERING KNOWLEDGE AND RESEARCH PROGRAMME (KaR 8332) Water demand management in areas of groundwater over-exploitation WATER DEMAND MANAGEMENT STRATEGY FORMULATION FINAL REPORT FEBRUARY 2006 in association with VRV Consultants (P) Ltd, Chennai, India Jouzy & Partners, Amman, Jordan DFID R8332 Water demand management in areas of groundwater over-exploitation WATER DEMAND MANAGEMENT - STRATEGY FORMULATION FINAL REPORT - February 2006 __________________________________________________________________________ Contents MAIN REPORT Page No. PREFACE 1 S. SUMMARY 3 1. INTRODUCTION 7 1.1 Purpose of the Report 7 1.2 International perspective 9 1.3 Water sector strategies 11 2. WATER DEMAND MANAGEMENT 15 2.1 Definition 15 2.2 Potential measures 15 2.2.1 Previous studies 15 2.2.2 Broad categories of water demand management measures 17 2.3 Potential impacts 19 3. THE POOR AND VULNERABLE 21 3.1 Water, poverty and vulnerability 21 3.1.1 The sustainable livelihoods approach 21 3.1.2 Water-Poverty links 23 3.1.3 Vulnerability assessment 24 4. STRATEGY FORMULATION 27 4.1 General 27 4.1.1 Policy review 27 4.1.2 Strategy formulation 28 4.2 Institutional and community aspects 31 4.3 Poor and vulnerable identified 34 4.4 Data requirements 35 4.5 Water demand management options defined 37 4.6 Enabling and supporting measures 40 4.7 Water savings and unit cost of water saved 41 4.7.1 General 41 4.7.2 Financial and economic aspects 42 4.8 Impact of demand management measures 43 01 June 2006 i DFID R8332 Water demand management in areas of groundwater over-exploitation WATER DEMAND MANAGEMENT - STRATEGY FORMULATION FINAL REPORT - February 2006 __________________________________________________________________________ 4.9 Comparison of measures and their likelihood of success 45 4.9.1 Impact of measures 45 4.9.2 Pre-conditions and likelihood of success 46 5. STRATEGY DEVELOPMENT AND IMPLEMENTATION - SUMMARY 48 References Glossary of terms Abbreviations and Acronyms Annex A Poverty and vulnerability Annex B Case studies Annex C Water demand management and water supply options 01 June 2006 ii DFID R8332 Water demand management in areas of groundwater over-exploitation WATER DEMAND MANAGEMENT - STRATEGY FORMULATION FINAL REPORT - February 2006 __________________________________________________________________________ PREFACE This document has been prepared as the final output for Project No R8332, Water Demand Management in Areas of Groundwater Over-exploitation. The project has been undertaken and funded as part of the UK Department of International Development (DFID)’s Knowledge and Research Programme. The initial concept for the research was developed by Black & Veatch Consulting Ltd in 2003 in line with the DFID agenda on poverty alleviation and within the context of the UN Millennium Development Goals. Water demand management has become an important element in integrated policies of water resources development and the purpose of the research has been to: develop water demand management strategies in areas where aquifers1 are being over-exploited, ensuring the long-term livelihoods of the vulnerable and poor are safeguarded; and to discuss and disseminate the findings with potential end users of the research (Donor agencies, Government and agencies involved in water management). Although the broad outlines of the strategies discussed in this report are widely applicable, the studies have been undertaken in developing countries with emphasis being given to pro-poor policies and poverty reduction. The research addresses the DFID Research Areas related to Millennium Development Goal No. 7, “Ensuring Environmental Sustainability”. It addresses elements of the corresponding DFID research areas of natural resource management; reducing pollution and environmental damage; access to safe water supply; and improving the quality of life for slum dwellers. During the studies a number of issues arose which have influenced the development of this document: It became clear that a water demand management strategy must be viewed as one component of a wider water resources strategy and although, in this document, the authors have concentrated on water demand management options, they have taken a broader view when discussing the development of a water strategy; Water demand management measures can be used to influence the distribution of water and, where equity and pro-poor policies are being introduced in areas of water shortage, there may be “losers” as well as “winners”. The political context becomes a central issue in their introduction; Water demand management measures will only be successful if they are acceptable to the policy makers and the consumers. In many developing countries, there is a hunger for and political will to change. In introducing demand management measures, however, a number of vested interests may have to be overcome. The existing drivers for change have to be understood and, if the measures are to be promoted successfully, they must 1 The studies have been widened where possible to make the findings applicable both to areas where aquifers are being over-exploited and to areas where surface water resources are restricted. 01 June 2006 1 DFID R8332 Water demand management in areas of groundwater over-exploitation WATER DEMAND MANAGEMENT - STRATEGY FORMULATION FINAL REPORT - February 2006 __________________________________________________________________________ have a sound basis where they confront established assumptions on water priorities. A number of studies have been undertaken in developing the material for this document, which describes an approach to Strategy Formulation for Water Demand Management. These included a Knowledge Review and Case Studies in Chennai, India and in Al Jafr, Jordan during 2004 followed by workshops and meetings with stakeholders in Chennai and Jordan in November 2004. A Case Study Report was submitted to DFID in January 2005. Additional studies were undertaken in Pondicherry, India and Andhra Pradesh in 2005 to test the approach proposed in this Strategy Document and a final workshop with stakeholders was held in New Delhi in November 2005. Black & Veatch Ltd has led the research, providing inputs on water resources, hydrogeology, economics, community participation, poverty and gender issues. The principal research collaborators have been: VRV Consultants (P) Ltd. and the Centre for Poverty Alleviation (CUPA) in India; and Jouzy & Partners and JOHUD, Queen Zein Al Sharaf Institute (ZENID) in Jordan This document “Water demand management – Strategy formulation”, the final report arising from the research project, comprises a Main Report plus three Annexes. The Main Report describes the background and overall approach to formulating a water demand management strategy. Annex A discusses poverty and vulnerability; Annex B describes the case studies undertaken in India and Jordan; and Annex C describes water demand management measures and water supply options. Acknowledgements The following Government institutions, donor and other principal agencies have provided advice and access to data in support of the studies and we acknowledge with thanks the assistance they have given: In India: The Ministry of Finance, The Department of Public Works and The Department of Municipal Administration and Water Supply in Tamil Nadu; Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB); The Institute of Water Studies, Chennai; World Bank; Asian Development Bank; Madras School of Economics; DFID, New Delhi; the Deputy British High Commission, Chennai; and several NGOs in Tamil Nadu. In Jordan: The Ministry of Planning, The Ministry of Water and Irrigation, The Ministry of Agriculture, UNDP, USAID, EU, GTZ, and The University of Jordan The principal members of the research team were: Black & Veatch: David Stacey, Research Coordinator; Dr. Elizabeth Mann, Community Development Specialist; John Petrie, Hydrogeologist; Tran Kim Tanh, Economist. VRV Consultants, Chennai, India: Dr V.R.Visweswaran, Water Resources Specialist; Kandaswamy Barathan, Economist. Centre for Poverty Alleviation (CUPA) in India: Louis Menezes, Ms R Bhuvana, Social Studies Consultants. Jouzy & Partners, Hashemite Kingdom of Jordan: Mr. Elie Halaby, Dr. Omar Shadid, Hydrogeologist. JOHUD, Queen Zein Al Sharaf Institute (ZENID) in Jordan: Dr Imam Nimri, Fatima Abu Kaff, Consultant Sociologists. Universtity of Jordan: Professor Elyas Salameh, Consultant Hydrogeologist. 01 June 2006 2 DFID R8332 Water demand management in areas of groundwater over-exploitation WATER DEMAND MANAGEMENT - STRATEGY FORMULATION FINAL REPORT - February 2006 __________________________________________________________________________ SUMMARY S1. Introduction The purpose of this report is to disseminate the findings of a project funded by the UK Government’s Department for International Development (DFID) under its Knowledge and Research Programme, Project R8332 - Water Demand Management in Areas of Groundwater Over-exploitation. The purpose of the research project was to develop water demand management strategies in areas where aquifers are being over-exploited, ensuring the long-term livelihoods of the vulnerable and poor are safeguarded. Many countries have reached a position where the quantity or quality of fresh water renewable resources will not meet the demand for the resource and is imposing a limit on economic development. Others are rapidly approaching a similar critical situation. These countries face a common problem - the implementation of existing policies