1. Multipurpose Water Storage, an international perspective Alessandro Palmieri, Water Infrastructure Adviser

2. OUTLINE Why Multiple Purposes? A couple of not so usual purposes ICOLD Committee on Multipurpose Water Storage (MPWS) MPWS Working Groups highlights

3. Opportunities and Challenges Multi-purpose dams are very robust producers of major streams of benefits as economies develop, as circumstances change and as societal values evolve. At the same time, the decision-making process to realize a multipurpose water project if very often a challenging one.

4. The Financial Gap Water infrastructure projects often fall in the gap between economic and financial viability. A project can be economically attractive and represent the preferred option when seen from a long-term national perspective, but when considered as a commercial investment it may be unable to generate adequate financial returns.

5. Three reasons for considering multipurpose objectives Dam sites, particularly storage sites, are scarce national resources, and so it makes sense to consider how to extract maximum benefit from them. Since civil works can last for 100 years or more, they should be viewed as genuinely long-term investments, which argues for flexibility in use over time. As global warming contributes to increasing variability in rainfall, agricultural production, floods, etc., storage becomes more valuable, and dam projects need to be designed with this in mind.

6. Some less usual purposes Sediment management in the downstream river course Prevention of ice jam formation Protection from upstream outburst floods (glacial lakes, barrier lakes, etc.) Artificial wetlands Barrier to saline water intrusion Micro-climate around reservoirs

7. A couple of examples Sediment management in the downstream river course Prevention of ice jam formation Protection from upstream outburst floods (glacial lakes, barrier lakes, etc.) Artificial wetlands Barrier to saline water intrusion Micro-climate around reservoirs

8. Xiaolangdi Multipurpose Project and Yellow River Sedimentation Reversal

9. THE PROBLEM In Kaifeng, the riverbed is more than 10m above the city River bed raise 100 mm/year Disastrous consequences when dykes break

10. 1km long physical model (moving bed) for 900 km of river course

11. DESCRIPTION (July 2002): Flushing lasted 11 days. Average discharge 2,740 m3/s. Volume released 2.61 billion m3. The test interested a total length of 800 km of the Yellow River. Gates at Sanmenxia and Xiaolangdi were operated 294 times. OUTCOME: 362 million tons of sediments moved onto the estuary in the N-E China Sea (800 km downstream). Reservoir Flushing

12. Artificial wetlands Kanna Dam, Japan

13. Reservoir Storage Modifies River conditions ….. and creates Wetlands Delta Deposits Wetland formation

14. The reservoir- created wetlands …... have become a tourist attraction

15. ICOLD Committee on Multipurpose Water Storage (MPWS) Launched in Seattle, August 2013 Time frame 3 years ICOLD member countries involved: Brazil, Canada, China, Ethiopia, France, Iran, Japan, Korea, New Zealand, Nigeria, Russian Federation, South Africa, Turkey, UK, United States. Chair: Alessandro Palmieri (Italy), Vice Chair: Li Wenxue (China)

16. ICOLD (MPWS) Objectives Recommend essential elements and emerging trends for planning and implementation of multipurpose water storage (MPWS) …… …. as economies develop, as circumstances change and as societal values evolve.

17. Three Working Groups Group 1: Case studies and literature review Group 2: Economic and Financial aspects Group 3: Long Term Planning

18. China: Xiaolangi Multipurpose

19. Xiaolangdi: the financial gap Total costs US$3.5 billion, US$1 billion for resettlement. Completed one year ahead of schedule; cost savings 300 MUS$. Multipurpose reservoir: Flood control, Sedimentation management, Maintaining adequate in stream flows, Replacing carbon fuelled, old, power plants, Water supply, Irrigation, Hydropower. ERR unchanged from appraisal (17.5% to 17.9 %), but Financial Rate of Return unsatisfactory because only energy sales accounted for. All other benefits accounted as public goods and not reflected in the financial analysis.

20. Indirect Economic Impacts of Dams Indirect economic effects Indirect economic effects – derived from linkages between sectors of production directly affected by the project and the rest of the economy – derived from expenditures by households out of extra income generated by project Multipliers Multipliers – Summary measure of relative importance of direct vs. indirect economic effects, expressed as a ratio of total to direct impacts

21. Findings Multipliers of hydraulic infrastructure can be large – ranging between 1.4-2.4 Indirect economic impacts should be analyzed, quantified and taken into account in the ex-ante and ex-post evaluation of projects Income distribution impacts can also be captured by using economy-wide models

22. Three Working Groups Group 1: Case studies and literature review Group 2: Economic and Financial aspects Group 3: Long Term Planning

23. MPWS Group #3: Long Term Planning Life cycle of reservoirs (planning, engineering, construction, operation, re-engineering) Planning for the long term early on Global warming, increasing hydrological variability, the role of storage, adaptive management. The "economic pitfall" (inter-generation equity fund) Life extension strategy and methods Re-engineering for safety Replacement of services Institutional challenges

24. MPWS Working Groups Group 1: Case studies and literature review Group 2: Economic and Financial aspects Group 3: Long Term Planning

25. MPWS-Framework for Case Study collection and analysis Projects designed and operated to serve two or more purposes List of purposes deliverable by MPWS Storage allocation Decision Support Systems Multipurpose timing Dam modernization and re-engineering Structural requirements Economic Analysis

26. Your contribution will be highly appreciated Thank you