Urban Update February 2022

Page 34

aRTICLE | Water & Sanitation: Key To Fight Pandemic

As We Emerge from Pandemic, We Must Prioritise Water & Sanitation If we hope to regain progress on the Sustainable Development Goals—and improve people’s lives— we must improve water service delivery in ways that help countries better manage future crises and improve equitable access to water Geoff Wilson | Senior Water Resources Specialist Sustainable Development and Climate Change Department, ADB

he pandemic has had a severe impact on the water industry in Asia and the Pacific but those involved in water supply, sanitation, and wastewater have been particularly hard hit, according to

34 February 2022 | www.urbanupdate.in

our research. The disruption that the pandemic caused altered key drivers of the water sector—water demand and wastewater discharge—resulting in an abrupt decline in commercial and industrial water demand and wastewater generation. The decline, in turn, has triggered the need for rapid operational adjustments for the hardhit service providers. Revenue decline is the single biggest financial impact to water service providers. In our survey, two-thirds of water supply service providers saw a decrease in commercial and industrial revenues. Many utilities, particularly the smaller ones, have faced a steep decline in financial reserves mainly due to the sharp decrease in commercial and industrial water consumption which wasn’t fully offset by the increase in household consumption. Utilities that employ cross-subsidies on water tariffs are expected to be especially hit. Many governments have intervened to ensure the continuity of critical water services during the pandemic, in some cases providing direct financial support to water service providers. In the absence of government relief, the financial burden of the pandemic is currently borne by water service providers. In the recovery phase, the gradual opening of commercial activity and increasing mobility has eased the emergency protocols of service providers. However, the possibility of reversion back into emergency mode puts service providers on high alert. Even as commercial activity picks up, the recovery phase does not represent pre-pandemic economic activities and service providers are likely to operate at less than full capacity. Reduced capital and maintenance spending, as well as significant changes to operating and maintenance planning, may be achieved either through government transfers or increased customer tariffs. To support the recovery of the water sector, the immediate priority for recovery should include ensuring public safety through the continuous provision of essential services while protecting the health of staff. Supporting the financial


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