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International
Seminar
Financing
Water and Sanitation Services
in
the Caribbean
April
26, 2004
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1.
Background
Water
supply and sanitation are essential for the well-being of any
country’s population. In the Caribbean countries there is an added
dimension: tourism accounts for about 40% of regional Gross Domestic
Product and depends on sustainable and safe water supply and sanitation
services. Moreover, the
central role that these services play in any country’s socio-economic
development has prompted the international community to adopt the
Millenium Development Goals (MDGs). According to the MDG targets, the
countries -- including those of the Caribbean -- commit themselves to
halve by the year 2015 the share of their population without access to
safe water supply. In addition, at the Johannesburg Summit on
Sustainable Development in August 2002, the MDG target was amended to
include a similar goal to halve by 2015 the share of the population
without adequate sanitation services.
The
Caribbean is in a favored position to meet the water supply and
sanitation targets under the MDGs. But providing the physical
infrastructure is not sufficient. It is necessary to provide “services
for all”, not only to those who can afford them. The services
must also be provided in an “efficient” way, which means
meeting demand at the lowest possible investment and operating costs in
order not to waste scarce resources; and the services have to be
“sustainable”, that is, the system built today should not
fall into disuse tomorrow but rather keep producing decade after
decade.
Despite
the advantages mentioned in the Caribbean, there are also challenges,
especially those arising from the need to promote the management of
water resources in an integrated way. That is, considering alternative
uses of this scarce resource in activities such as irrigation,
recreation, tourism, energy generation, water supply, wastewater
collection, treatment, and disposal. Water in the Caribbean is
distributed unevenly and the issues that the water sector faces are
also heterogeneous. In Guyana water resources are abundant while in
Barbados and The Bahamas they are scarce. In many countries water demand
exceeds natural water supplies. In some countries important efforts
should be made to implement an adequate water resources policy
framework, acceptable financial mechanisms and adequate institutions to
face the issues that the MDGs impose. These challenges that are common
to other countries outside the region, are reinforced by factors that
are critical in the Caribbean: to preserve the pristine condition of its
beaches –a crucial competitive advantage of the region—and maintain
the quality and level of its water resources –a scarce resource
throughout most of the region. As a result, it is necessary to address
the multiple issues raised to comply with the MDGs, one of them being
the financing of these services.
Since
its establishment, the Inter-American Development Bank has been actively
involved in financing water-related projects in Latin America and the
Caribbean. In the water and sanitation sector, the Bank has invested
approximately US$ 3.8 billion since 1994. The Bank's Integrated Water
Resources Management Strategy, approved in 1998, promotes the concepts
of efficiency in public utilities, the rational use of water resources
and the promotion of public-private partnerships in the sector.
The
IDB's main purpose in the water sector is to support and help the
countries of the region to meet the Millennium Development Goals (MDGs)
through the organization of a series of seminars that will provide an
adequate framework for discussion with key stakeholders on mechanisms,
options and factors that would increase investments and coverage (in
accordance with the MDGs) in the water and sanitation sector in Latin
America and the Caribbean. Identifying a new Water Agenda, financial
instruments, and financially sustainable alternatives will help the
countries in the Region to solve the pressing problems in the potable
water and sanitation sector where, in most countries, only a small
portion of these needs are presently being satisfied due to lack of
financial resources both public as well as private.
2. Objectives
The
overall objective of the Seminar was to provide an adequate framework for
discussion with key stakeholders on mechanisms, options and factors that
would increase investments and coverage (in accordance with the
Millennium Development Goals - MDGs) in the water and sanitation sector
in the Caribbean.
The
Conference raised the awareness of governmental authorities of
the investments required to reach the MDG’s in potable water and
sanitation as well as identified options and alternatives to overcome
the major obstacles that have hindered investments in the sector and
that could jeopardize compliance with the MDGs in the coming years. The
discussion of solutions that will enable countries in the region to
increase service coverage while maintaining adequate fiscal discipline
was part of the objectives of this event.
3.
Place of the seminar
The
seminar was held on April 26, 2004 in Barbados.
4.
Participants
Participants
were authorities of the central government, water and sanitation
officials (ministers, directors of planning institutes, permanent
secretaries) from the institutions responsible for Water and
Sanitation Services (WSS) provision, and also representative
officials of financing institutions in the Caribbean.
5.
The Seminar
The
seminar had four main blocks. The first session was aimed at
addressing the link between water, sanitation and the economic
development of the countries in the Caribbean with special emphasis
on the link between WSS and tourism and economic development in the
region. The first session also addressed the main issues
affecting the performance of the WSS and actions needed to reach the
Millenium Development Goals will be explored. The second session was
dedicated to the financial aspects of the WSS and how they
can be addressed. The third block of the seminar was dedicated
to the influence of institutional issues on the general performance
of the sector. Finally, the fourth block explored the
relationships between the water sector widely considered and the
tourism industry, this sector being crucial for the economic
development of the region.
6.
The Documents
The
preparation of each presentation was based on seven basic
documents prepared by specialized consultants and discussed during
the sessions. The proceedings of the seminar will be published.
Last
update: 05/04/04
Environmental and
Natural Resources Management Division
Regional Operations Department 3
Inter-American Development Bank
1300 New York Avenue NW
Washington, DC
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