Cooperation on Transboundary Waters: A Challenge for Europe and Other Regions of the World Dr. Stephen F. Lintner World Bank

World Bank Our Mandate  Poverty Reduction  Environmentally and Socially Sustainable Development  Knowledge Sharing

World Bank - Environment Strategy The Strategy sets three interrelated objectives:  Improving the quality of life  Improving the prospects for and the quality of growth  Protecting the quality of the regional and global environmental commons

World Bank Experience

Transboundary Water Management  Water is a Catalyst for Cooperation  Integrated Management – Freshwater, Coastal and Marine Resources  Preventive and Curative Measures  Sharing Benefits Not Water

World Bank Programs and Projects  Mediterranean Sea  Baltic Sea  Danube River Basin  Black Sea  Caspian Sea  Aral Sea  Lake Ohrid

World Bank Programs and Projects  Nile River Basin  Lake Victoria  Lake Chad Basin  Senegal River Basin  Red Sea and Gulf of Aden  Mekong River Basin  Mesoamercian Barrier Reef  Gurani Aquifer

World Bank Exchange of Experience  Petersberg Process  Petersberg Declaration  Berlin Recommendations  Vilnius Recommendations  Consultation on Transboundary Water Management (Berlin)  Cooperation with GEF (Budapest)

Lessons Learned

Lessons Learned: Key Factors for Success  Shared Vision  Sustained Political Commitment  Strong Public Support  Broad Based Partnership

Lessons Learned: Important Considerations  Program Design  Clear and Realistic Objectives  Adoption of a Long-Term Timeframe  Phased Implementation  Performance Indicators

Lessons Learned: Important Considerations  Institutional Arrangements  Small Efficient Secretariats  All Cooperating Countries Need to Contribute to Operational Costs  Transparent Personnel and Accounting Procedures  Avoid Reliance on External Grant Funding

Lessons Learned: Important Considerations  Integration of Priorities into Investment Plans  National and Local Level  Use of Grant Resources  Use of Loan Resources

Lessons Learned: Important Considerations  Use of Economic Instruments  Limited to Date As Programs Designed to Address Externalities  Major Focus on Water and Wastewater Tariffs  Clear Responses to User Fees  Pollution Fees and Fines

Lessons Learned: Key Factors for Success Conventions Are Important; However, They Are Not Mandatory for Effective Progress

Lessons Learned: Preventive Measures  Often Most Politically and Socially Difficult  Require Changes in Plans and Visions  May Result in Conflicts with Vested Interests  Most Cost Effective  Physical and Environmental Planning  Development Restrictions  Environmental Incentives  Water Pricing and Cost Recovery  Risk Prevention

Lessons Learned: Curative Measures  Often Political and Social Demands for Action  Results Difficult to See Quickly  Expensive  Requires Long Time Frames  Point Source Pollution  Non-Point Source Pollution  Restoration of Ecosystems  Monitoring Systems

Lessons Learned: Curative Measures  Mobilization of Capital Investment  Critical Need to Avoid Over Investment  Operation and Maintenance  Political Sensitivity of Tariff Adjustments  Often Need to Change Institutional Structures  Importance of Efficiency

Challenges

Four Major Challenges  Making the Transition from Planning to Action  Sustained Cooperation Over the Long-Term  Increasing Self-Financing of Programs  An Ability to Revise Programs to Meet Changing Conditions

A New Challenge  Integration of Transboundary Waters Programs into Emerging Development Frameworks  Millennium Development Goals  Performance Based Aid (post Monterey)  Comprehensive Development Frameworks  Poverty Reduction Strategies  Increases Importance of Broad Based Ownership by Cooperating Countries and Internalization in Their Priorities

Financing Water Services  Link Infrastructure to Water Resources Management  Treat Water as a Market Good  Efficient Use and Delivery  Appropriate Pricing  Cost Recovery  Support Regulatory Frameworks and Policies

Financing Water Services  Encourage Adoption of Affordable Standards  Increase Dialogue with Industry and Investors  New Approaches to Public-Private Collaboration  Innovative Financing  Sub-Sovereign Guarantee Schemes