UNCONVENTIONAL SOLUTIONS FOR UNCONVENTIONAL WATER RESOURCES. ADDRESSING SUSTAINABILITY, BANKABILITY AND AFFORDABILITY CONSTRAINTS

By Mrs. Patricia López Senior Water Specialist, Water Global Team, World Bank

This concise article provides a summary of the key takeaways from the panel discussion titled "Unconventionalsolutionsforunconventionalwaterresources:Addressingsustainability,bankability,and affordability constraints." The panel brought together influential representatives from the water sector, includingseniordelegatesfrompolicyandpublicadministration,privatesectorinvestment,andmultilateral financing. The discussion revolved around the importance of public-private collaboration to increase investmentandfinancingforglobalandcountry-levelwatersecuritygoals,withafocusondesalination andreuseascommonlyknown"unconventionalsolutions."

and performance, as well as establishing and regulating water pricing mechanisms. The participants specifically stressed the importance of strategic investment planning by the public sector, including ensuring land and permit availabilities, to attract private investment and expedite the execution of infrastructure projects through public-private partnership arrangements.

The panelists emphasized the need for enhanced collaboration between the public and private sectors to align their roles in facilitating investments and financing. They highlighted the crucial role of the public sector in creating favorable conditions for both public and private investment, such as implementing policies and regulations to improve sector governance

Furthermore, the panel reflected on the significance of improving the technical performance and financial sustainability of water service providers to achieve creditworthiness and access to financing. They also highlighted the need for continued engagement from the private sector in finding innovative solutions and providing financing and expertise while service affordability as a real concern in many developing countries. The discussion touched upon the importance of learning from past failed public-private partnerships in various sectors to understand and allocate risks effectively and align incentives to achieve targets, efficiency, and social endorsement.

The panel also discussed the immense potential of renewable energy in reducing the energy footprint of desalination. They provided examples of the latest advancements in solar power battery storage technology, which offer promising opportunities for continuous solar energy-driven desalination plants in a decarbonized world. Regarding wastewater reuse, the panelists agreed that given the pressure on scarce water resources, embracing circularity and climate-resilient approaches is crucial. Policy makers were urged to set the right incentives for different economic agents and mobilize investments to ensure the financial sustainability of reuse initiatives.

In conclusion, the panel emphasized that valuing and achieving water security at both the country and global levels require a new level of partnership that goes beyond national borders and traditional public sector approaches to optimize all water resources available, and blend fiscal resources with commercial, climate funding and sustainable funding to achieve sector sustainability. Civil society involvement was deemed essential. The panel recommended that governments, with support from multilateral institutions, if necessary, take the lead in coordinating multiple stakeholders, including various financiers, through country-level water sector financing platforms. These platforms can facilitate the necessary conversations to find fitting solutions for this global challenge, where desalination and reuse seamlessly integrate as “new water” sources .