Asia’s Water Crisis… and Opportunity | Black & Veatch
Perspective

Asia’s Water Crisis… and Opportunity

For developing Asia, planning around the scarce availability of fresh drinking water will require a shift in focus from supply- to demand-type solutions, as it faces the perfect storm of rapid urbanization, industrialization and population growth.

Asia’s Water Crisis… and Opportunity

Asia is now. In the aftermath of the financial and economic crisis of 2008 and 2009, few would argue against the potential of developing Asian nations leading the world’s recovery. Indeed, many of its major, developing economies rebounded faster than their western counterparts.

Yet, despite this, the sustainable development of many Asian economies could be standing at a crossroads. Water stress dominates large parts of the region. Bangladesh, China, Cambodia, India, Nepal, Pakistan, Philippines and Vietnam have all been documented at or near water stress conditions. Whats more, water shortages are expected to aggregate 40 percent in developing Asia by 2030, according to a study from the Water Resources Group, and many experts question if the right policies and practices are in place today.

“It is more than a physical water crisis, there is a crisis of water governance across developing Asian economies,” said Sahana Singh, Editor, Asian Water. “The political will needed to manage water supply and demand is lacking. Either the policies are flawed or the implementation is flawed and very often, its both.”

There is a growing call to look at the serious challenges more holistically and acknowledge water as a fuel. A common public misconception is that most water is used domestically. Think again. Water fuels agriculture and industry. You cannot plan for water scarcity without taking into consideration waters entire cycle.

“Water projects are planned without thinking about wastewater, energy and other related sectors,” Singh continued. “Urban and industrial water projects are executed without thinking about agriculture. It does not make sense to deliver more piped water connections to people without ensuring that the wastewater produced is also being treated and reused.”

Increasing Thirst for Water

It is a fact that approximately 80 percent of Asia’s freshwater is used by irrigated agriculture. Next in line is industry, and as Asia’s manufacturing base swells, so does the sectors thirst for water. Columbia University estimates that industry use of water in Asia will increase by 65 percent by 2030. Add the complexity that water is a vital component of energy production and the real rate of industrial water use will increase further. Clearly, water, or more precisely, the lack of fresh, accessible water,threatens not only sustainable economic growth in Asia, but the very survival of the regions booming populations.

In many ways, recent growth in developing Asia is like a runaway train. Rapid urbanization, industrialization and booming population growth have come at a pace hard to match. Infrastructure lags. Between 2011 and 2020, projected water spending in Asia Pacific is expected to exceed US$1 trillion, according to IHS Global Insight. Yet, credible estimates in a joint study by several leading organizations on what is required to keep pace with demand over 10 years come in at a minimum of US$8 trillion.

The numbers do not match up.

To simplify, there are really only two ways to address the problem - look at supply, and look at demand. Gains on the demand side are a lot less straight forward but could be more cost-effective and, in the end, return more gains.

Developing nations by their very nature have no options but to deal with supply gaps. Vietnam is a good case. Crucial work is being conducted through loans from institutions such as the Asian Development Bank (ADB) and Japanese International Corporation Agency. Vietnam is trying to connect swelling new urban populations to clean drinking water or install adequate drainage and sanitation infrastructure. More projects, however, such as in Phuoc Hoa, outside the nations capital Ho Chi Minh City, are now examining ways to modernize and improve efforts on the demand side of the equation through more holistic programmes that look at water resources management and irrigation.

Doing More with Less

If there is one lesson we have learned from the evolution of human civilization, it is that our most durable successes have been characterized by technologies that enable us to do more with less. Great strides were made in Australia as it battled through recent water scarcity challenges. According to the ADB, Australia has sustained continued economic growth with only 30 percent of the water it had 10 years ago and improved its irrigation efficiencies dramatically.

In contrast, food production in developing Asia has increased manifold, but irrigation efficiencies have increased by less than 1 percent per year since 1990. As seems always the case, this situation is further compounded by the stresses of Asia’s demographic shifts. The dietary preferences of the emerging middle classes in developing Asia’s new cities are demanding more water-intensive farmed products. In the Peoples Republic of China, appetites for meat doubled in the last two decades and are forecast to double again by 2030.

According to the ADB, “Asia’s aging irrigation systems must be revitalized to produce more crops with less water in the face of the regions surging demand for food (a 70 to 90 percent increase by 2030).” More “crop per drop” has to be central to agricultural planning throughout the region. Technological advances such as improved germplasms for both irrigated and rain-fed areas, as well as integrated plant stress management, will have to be examined more thoroughly.

Industry's Role in Reducing Demand

Industry also has to play its part in reducing its water footprint. The Carbon Disclosure Project's Water Disclosure Project 2010 talked to 150 of the worlds largest 500 companies. The study showed that 39 percent had experienced a detrimental impact to operations as a result of water-related issues everything from drought to pollution to increased water tariffs.

Water is being taken seriously by big business. It is high on the agenda, with two-thirds of these companies reporting that responsibility for water-related issues lay firmly at the Board or Executive Committee level. In the study, 89 percent of the companies claimed to have already developed specific water policies, strategies and plans, and almost two-thirds of this set also cited significant water-related business opportunities.

Available technology solutions today are also creating compelling arguments that illustrate long-term operational savings from limited capital investments. Indeed, a huge leap forward in membrane technology makes water reuse a no-brainer option for some closed-loop industrial applications and something for close consideration for public use. There are barriers to scale for its adoption as a planned, indirect potable source of drinking water, but these can be overcome with more dialogue and more research, if required. Cost realities may not be there for many municipals in developing nations, but they are less restrictive than today’s cost realities of desalination.

From a water technology and engineering perspective, potable water reuse is here. One common thread expressed by water leaders through Black & Veatch's Water Dialogue series was that the long process of educating the public and overcoming misconceptions was vital. In many respects, this can be applied to a lot of demand-type solutions. It requires more dialogue and more understanding to implement effectively.

Problems with Conveyance Leakage

The ADB estimates that utilities lose 30 to 60 percent of their water inputs, or around 29 billion cubic meters. Singh argues that progress can be made outside of major financial investments in new supply solutions.

“It does not make sense to have state-of-the-art treatment plants while wasteful irrigation takes away the bulk of water, while half the distribution pipes are leaking, and while utilities have no autonomy to recover even their operation costs,” Singh said. “If we can find a way to efficiently provide water for all and reuse the same water repeatedly, while recovering nutrients just as nature does it and generate energy in the process then well be getting somewhere.”

It is important to always consider investments and improvements from a holistic standpoint. Future water security cannot be achieved by an over-reliance on one source of water. Desalination, reuse, enhancement catchments, aquifer recharge and other conveyance options all can play a part of an integrated water portfolio that considers current and future water demands. This is the key to sustainable planning.

This is not a picture of Asia in five years – it’s happening now, and the opportunity is available to plan its development correctly. Leaders cannot apply the same model of development that served the 200 million to 300 million people of Europe and North America during those periods of rapid urbanization, compared to Asia’s 2 billion to 3 billion people now. Experts need to tackle the implications and harness the realities of the nexus of energy and water and food.

Developing Asia has an opportunity to redefine best practices in water portfolio planning and lead the world, not only economically, but also environmentally.

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