The document discusses the water-food-energy nexus and the implications for investment in the water sector. It notes that water, food and energy production are closely interlinked, with increasing competition for freshwater resources. This poses challenges for development that are exacerbated by climate change. To address these challenges, investments in water supply, sanitation and related areas will need to expand. However, monitoring investments and results in the water sector is complex given its cross-sector nature and involvement of multiple stakeholders. Moving forward, an effective framework for monitoring investments and results can help improve development in the water sector.

1. Water-Food-Energy Nexus in a changing world:
Implication on investment in the water sector
Hongpeng Liu
Chief, Energy Security and Water Resources Section
Environment and Development Division
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

2. Outline of presentations
 Linkages between Water-Food-Energy
 Some data about Water, Food & Energy
 Challenges
 Address the challenges: Investment
implications in water sector
 Monitoring of Investments and Results
 Moving forward
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

3. Linkages between Water-Food-Energy
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

4. Some data – Water, Food & Energy
 80% fresh water in Asia used for agriculture
 50% of cost of delivering urban water for energy
 Huge amount of water consumed for power
generation and cooling
 Water for bio-fuels competes with water for
agriculture
 Crops for biofuels competes with food from
agriculture
 Energy production accounts for about 30% water
withdrawals in Europe & 40% in US
 Energy demand is projected to rise by 40 to 50% for
Asia by 2030, big implications on water
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

5. Water for energy: primary fuels
Raw Materials Transformation Del. to Customer
Oil
Traditional Oil
3-7 l/GJ Oil Refining
Enhanced Oil Recovery 25-65 l/GJ
50-9000 l/GJ
Oil Sands
70-1800 l/GJ
Delivery of
Biofuels Ethanol Natural Gas and
Corn
9000-100.000 l/GJ
47-50 l/GJ Liquid Fuels to
Biodiesel
Soy 14 l/GJ
Customer
50000-270000 l/GJ involves only
Sugar
N/A small amounts of
water
Coal Coal to liquids
5-70 l/GJ 140-220 l/GJ
Gas
Traditional Gas Natural Gas
Very small amount Processing
Shale Gas 7l/GJ
36-54 l/GJ
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

6. Water for energy: electricity generation
Raw Materials Transformation Del. to Customer
Thermoel. Fuels
Coal Thermoelectric
20-270 l/MWh
Oil & Natural Gas
Generation
Wide variance (closed loop)
Uranium 720-2700 l/MWh
170-570 l/MWh
Delivery to
Evaporation Loss Customer through
Hydroelectric
Average: 17.000 l/MWh
electric grid
involves very little
Geothermal 5300 l/MWh
water
Concentrating Solar: consumption
2800-3500 l/MWh
Solar Photovoltaic:
Minimal
Wind Wind
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

7. Energy for water: supply & services
Raw Materials Transformation Del. to Customer
Survace Water
0-2400 kWh/million l Treatment to Drinking
Water Standards
High Quality Groundw.
26 kWh/million l
Brakish Groundw. ~290kWh/million l
Desalination
Groundwater 300-1400 kWh/million l
37 meters Seawater Desalination
140 kWh/million l 3600-4500 kWh/million l
122 meters
530 kWh/million l
Municipal Wastewater Treatment
Wastewater ~ 650 kWh/million l
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

8. Water for food
 a kilogram of tomatoes requires 160 liters
of water (Water Footprint Network)
 Meat – 30,000 – 70,000 liters per kg
 Sugarcane – 250 tons per ton of cane
 Chocolate - 24,000 liters per kg (Ghana)
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

9. Challenges
 Multiple Challenges in water sector
 Increasing water scarcity threat, High water utilization, Deteriorating
water quality, natural disaster, ecosystem changes, cost recovery and
performance management remain major challenges to improving
sanitation etc
 Climate change – exacerbate these challenges
 Populations & economic growth
 Agricultural sector & crop production decline
 Multiple competition of freshwater in developing countries
 Growing interdependency of water, food & energy
 Water – new factor for food & energy security; central
element in international relations (bilateral & multilateral)
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

10. Address the challenges: Investment
implications in water sector
 Areas
 Water Supply and Wastewater Service
 Environmental Services and System Integrators
 Component Manufacturers and Solution Providers
 Sanitation
 Traditional investment
 Gov budget, aid, loans, equity, PPPs etc.
 New trends
 Specialized infrastructure and water funds
 More tailored local currency lending strategies
 Securitization and second market trading
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

11. Monitoring of Investments and
Results (MIR) in Water Sector
 MIR, the 4th of 5 Key Result Areas of APWF
 APWF an outcome of the 3WWF in Tokyo, March
2003, launched at the 4WWF in Mexico, March 2006
 1st MIR was reported to the 1st APWS, Beppu,
Japan, Dec 2007
 To provide an indication of the improvement
made in the water sector in ensuring socio-
economic development
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

12. Monitoring of Investments and
Results (MIR) in Water Sector
 Very complex
 Cross-sector
 Involving public/private sectors and civil societies
 Within the public sectors
 The various ministries and departments
 Federal, provincial/states and local levels
 in a continuing worsening and challenged environment of
pollution/urbanization, multiple global crisis and climate
change impacts
 Different levels of development will influence
the different investments expanded for the
various utilities and infrastructures as indicated
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

13. Differences on Infrastructure and Utility Allocation,
circa 2000 between Japan and Malaysia
Shares of Development Allocation for Infrastructure and Utilities
60
50 48.54
40 38.4
30
%
27.01
20.8 Malaysia
20 17.6 Japan
8.8 9.6
10 7.65 7.87
2.96 3.2 3.05 2.89
1.6
0
Sources: Japan expenditure for 2000 and 2001
Budget Allocation for Malaysia, 8th 5year plan (1996-2000)
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

14. Moving Forward
 Recognize MIR as an effective tool
 Develop a framework for MIR
 Information exchange
 Follow up activities towards the 2nd APWS
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011

15. THANK YOU
EGM on MIR in the Water Sector,
UNCC Bangkok, ESCAP, 22-23 September 2011