1. Analysis for ENPI countries of Social and Economic Benefits of Enhanced Environmental Protection WATER – ENPI South Bjorn Larsen Environmental Economist Freelance Consultant Norway and Lao PDR e-mail: BJRNLRSN@AOL.COM

2. Outline of presentation Scope of benefit assessment (what parameters are included?) Rationale for parameters (why important?) Methodologies used for benefit assessment Benefit assessment challenges (what were the difficulties?) Methodologies for future benefit assessments Main results from the benefit assessment Conclusions and recommendations 28-06-20112

3. Scope: environmental parameters INFRASTRUCTURE AND PRACTICES Household connection to safe and reliable piped drinking water supply Household connection to sewage network Improved domestic and personal hygiene practices, whenever such practices are inadequate for health protection Wastewater treatment NATURAL RESOURCES Surface water quality Water scarcity 28-06-20113

4. Parameter linkages 28-06-20114 Drinking water sources Drinking water treatment practices Sanitation facilities Hygiene practices Delivery; Treatment Surface water Groundwater Water quality Water quantity (scarcity) HouseholdsExternal environmentService providers Potable water Sewage and wastewater

5. Methodologies used for the benefit assessment ParameterQualitative*Quantitative and monetary Drinking water, sewage, and hygiene YesHealth Surface water qualityYesWelfare* Wastewater treatmentYes Indirectly (surface water quality) Water scarcityYesNone 28-06-20115 * Health, environmental, economic, and social benefits

6. Wastewater treatment 28-06-20116

7. Rationale for parameter The level of waste water treatment if often rather poor and there is substantial room for improvement in many of the countries under study, or in parts of them. Poor waste water treatment leads to damage to the natural environment and can substantially affect water quality. In water scarcity ENP southern countries, wastewater treatment provides opportunities for re-use. 28-06-20117

8. Overview of key benefits of improved wastewater treatment 28-06-20118 Health benefits Health benefits from cleaner surface water: Recreation (swimming) Environmental benefits Reduction in eutrophication in aquatic ecosystems, with due improvements to the ecosystems and associated recovery of fish and other aquatic life. Economic benefits Reduced costs of treatment for potable water. Surface water will be more suitable for economic uses such as cooling water and industrial water. Re-use of wastewater saves costs. Social benefits Recreational benefits such as nuisance related to odours from direct discharge of sewage in the environment etc.

9. Water scarcity 28-06-20119

10. Rationale for parameter Water resources are distributed unevenly throughout the majority of the ENPI South region, with most of the countries facing local or nationwide water resource constraints. Several of the countries are over-extracting groundwater, causing water quality problems and higher pumping costs. Water scarcity is affecting agricultural development and contributing to soil salinity. Some of the countries, such as Jordan, Israel and Egypt are facing high level of water stress (high water use as a % of water availability) 28-06-201110

11. Overview of key benefits of improved water resource management (reduced scarcity) 28-06-201111 Health benefits Reduced water scarcity reduces water pollution concentrations and thus reduces risk of health effects from its uses Environmental benefits Reduced water scarcity reduces water pollution concentrations and thus reduces environmental impacts of pollution Economic benefits Reduced water scarcity reduces the cost of water mobilization and increases continuity of water availability for economic sectors Social benefits Reduced water scarcity (seasonal etc) increases recreational opportunities and value

12. Methodological steps – quantitative benefit assessment 28-06-201112 Steps 1.State of the environment (in reference year) 2. BAU baseline to 2020 (or other target year) 3. Target in 2020 (or other target year) 4. Environmental improvements (difference between target and BAU) 5. Benefit assessment

13. Household drinking water, sewage and hygiene 28-06-201113

14. Definition of terms Piped drinking water supply that is safe and reliable at household tap Drinking water that does not contain biological, chemical or other agents at concentrations or levels considered detrimental to health according to WHO guidelines for drinking water quality. Continuous and plentiful water supply delivered at appropriate and constant pressure to household premises (yard/dwelling) 28-06-201114

15. Definition of terms…continued Sewage connection Connection to a closed, piped system for safe removal of excreta and wastewater from the household and community environment Hygiene A procedure or system of procedures or activities used to reduce microbial contamination on environmental sites and surfaces and the external body in order to prevent the transmission of infectious disease (IFH, 2001), e.g., hand washing with soap; food preparation; other domestic and personal hygiene practices) 28-06-201115

16. Rationale for parameters INFRASTRUCTURE AND PRACTICES 88% of diarrheal disease is caused by unsafe water, sanitation and hygiene (WHO). Polluted drinking water also causes many other diseases (e.g., hepatitis A, typhoid, and, in some situations, cancer and other serious health effects) Diarrheal disease in young children contribute to poor nutritional status, which in turn has many health and cognitive development impacts 28-06-201116

17. Rationale…continued Piped water supply to premises (yard/dwelling) and connection to a sewage network are often the best opportunity to provide households with reliable and safe drinking water and ensure safe and hygienic removal of human excreta and other wastewater pollutants from the household and community environment. Piped water supply from a central water intake and distribution outlet allows for treatment of water and monitoring of water quality. Connection to sewage network allows for centralized treatment of wastewater before discharging into the environment 28-06-201117

18. Rationale….continued Most households in the ENPI countries – ranging from 80-100% of households - have what is classified as access to an improved water source. However, a smaller percentage of households – ranging from 60-100% - have piped water supply on premises (WHO/UNICEF, 2010). Likewise, 70-100% of households have what is classified as improved sanitation facilities (WHO/UNICEF, 2010), while 50-100% of households are connected to a sewage network. 28-06-201118

19. Rationale….continued Good hygiene practices such as hand washing with soap at critical junctures (after defecation/going to toilet or cleaning a child feces, before cooking and eating, and before feeding a child) is found in many countries to reduce incidence of diarrhea by as much as 45 percent (Curtis and Cairncross 2003; Fewtrell et al 2005). Good hand washing practices are also found to reduce transmission of respiratory infections (Rabie and Curtis 2006; Luby et al 2005). 28-06-201119

20. Targets for 2020 Drinking water: Achieving 100% population connection (except in isolated rural areas) to reliable and safe piped water supply at household premises. Ensuring that the population currently having piped water supply continuously receives reliable and safe water at household premises. Providing plentiful and equally safe drinking water from other improved water sources in isolated rural areas. 28-06-201120

21. Targets….continued Sewage connection: Achieving 100% population connection (except in isolated rural areas) to a sewage network system. Upgrading to flush toilet (with sewage connection) for households with dry toilet or no toilet). Providing improved sanitation to households currently without such facilities in isolated rural areas. Hygiene: Improving hygiene practices especially ensuring good hand- washing with soap at critical junctures wherever such practices are currently inadequate for protection of health. 28-06-201121

22. Overview of key benefits of safe and reliable piped water supply 28-06-201122 Health benefits Reduced incidence of disease and mortality. Improved child nutritional status. Environmental benefits Economic benefits Reduced need for household water storage, point- of-use treatment of water prior to drinking, and purchase of bottled water. Reduced health care expenditure, improved labour productivity and reduced work absenteeism. Reduced water losses and thus costs of providing potable water. Social benefitsIncreased convenience

23. Household treatment of drinking water (%) Boiling of waterOther treatmentsAppropriate treatment, total Algeria 1.2%16.5%16.4% Egypt 0.4%4.3%<4% Jordan 3.7%17.9%21.2% Syria 1.3%6.2%4.5% 28-06-201123 Source: DHS and MICS household surveys, 2006-2009. Note: No data from DHS and MICS for Israel, Lebanon, Morocco, Tunisia and West Bank and Gaza.

24. Overview of key benefits of household connection to sewage network 28-06-201124 Health benefits Reduced incidence of disease and mortality. Improved child nutritional status. Environmental benefits Sewage collection provides opportunity for proper treatment of wastewater, and thus can reduce pollution of the environment Economic benefits Sewage collection and proper treatment of wastewater can provide substantial recreational, tourism, and fishery benefits. Social benefitsIncreased household convenience, and reduced odours and nuisance from preventing direct sewage discharge into the local environment.

25. 28-06-201125 Piped water supply and sewage connection (1) Piped water supply but not sewage connection (2) Not piped water supply but has sewage connection (3) Not piped water supply and not sewage connection (4) Algeria 70%2%7%21% Egypt 40-54%38-52% 2%6% Israel 93-100%0-4%0%0-3% Jordan 51%40%2%7% Lebanon66%14%0%20% Morocco 44%14%2%40% Palestinian Territories63%15%2%20% Syria 63%20%7%10% Tunisia 55%21%2%22% Population coverage of piped water supply and sewage connection, 2008 Note: (1)+(2)=has piped water. (1)+(3)=has sewage connection

26. Diarrheal disease and mortality reductions from reaching the targets 28-06-201126 Current water supply and sanitation coverage Water and sanitation improvement Reduction disease and mortality Has piped water supply and sewage connection Improvement in reliability and quality of piped water15% Has piped water supply but no sewage connection a) Improvement in reliability and quality of piped water b) Sewage connection35% Not piped water supply but has sewage connection Reliable and safe piped water supply to premises25% Not piped water supply and no sewage connection Reliable and safe piped water supply and sewage connection45%

27. Nationwide diarrheal disease and mortality reductions from reaching the targets 28-06-201127 If already good hygiene If hygiene is not adequate, and will be improved Algeria 25%57% Egypt 26-29%57-60% Israel 15-17%25-27% Jordan 27%58% Lebanon 26%58% Morocco 33%65% Palestinian Territories 27%59% Syria 24%56% Tunisia 28%60%

28. Main results Magnitude of health benefits depends on: Current water, sanitation and hygiene situation Baseline health status (child mortality, incidence of morbidity) 28-06-201128

29. Annual benefits, 2020 28-06-201129 Annual cases avoidedAnnual benefits (Million Euros (PPP)) Diarrhoea (million)DeathsTotalTotal (% GDP) LowHighLowHighLowHighLowHigh Algeria 7.016.1 1,3133,0241,1422,6300.40%0.93% Egypt 19.043.4 1,1582,6441,2312,8090.26%0.60% Israel 0.61.0 121242270.06%0.11% Jordan 1.53.2 55119861860.24%0.52% Lebanon 0.71.6 1124761690.30% Morocco 8.216.3 1,4102,7946721,3330.50%0.99% Palestinian Territories1.22.68819345990.32%0.70% Syria 4.911.3 2345362505720.24%0.54% Tunisia 2.24.7 791681823870.22%0.48% TOTAL 45.3100.34,3499,5043,8088,4120.28%0.57%

30. Surface water quality 28-06-201130

31. Definition of terms Surface water quality The parameter measures the level of the quality status of inland surface water and coastal waters (up to three nautical miles). Water quality status is divided into five categories depending on the biological elements present in the water. These categories build on the EU Water Framework Directive (WFD) (EC, 2000) quality status categories: bad, poor, moderate, good and high. 28-06-201131

32. Rationale for parameter Surface water quality is important for aquatic ecosystems, economic sectors sensitive to water quality, and for recreation and tourism. Improving bathing water quality protects those engaged in swimming from contaminants in the waters. Those that may be at higher risk of disease include the young, the elderly and tourists who do not have immunity against locally occurring endemic diseases (WHO, 2003). In many ENP countries surface/coastal waters are very important for the national economy, especially in those countries where tourism activities in coastal areas are a key asset. 28-06-201132

33. Target for 2020 Improvement in surface water quality from current conditions to Good Ecological Status (GES), which is the overarching environmental objective of the EU Water Framework Directive (WFD). 28-06-201133

34. Overview of key benefits of improved surface water quality 28-06-201134 Health benefitsReduced incidence of disease Environmental benefits Reduction in eutrophication and toxic pollution with benefits for aquatic life Economic benefits Reduced cost of water to agriculture, industry and other sectors. Improved surface water quality can provide substantial tourism, and fishery benefits. Increased property values. Social benefitsIncreased quality of life and recreational benefits

35. Assessing monetary benefits Benefits of improved surface water quality can be quantified in monetary terms by population willingness- to-pay (WTP) for improved water quality If WTP studies in subject countries are not available, a benefit transfer approach can be applied from countries in which such studies do exist The benefit transfer involves adjusting WTP for income and other characteristics that determine WTP The benefit for ENP countries relies on a benefit transfer of population WTP from the UK 28-06-201135

36. Annual benefits, 2020* 28-06-201136 WTP results in 2020, PPP per HH year Aggregated benefits WTP in 2020, PPP million Benefits relative to GDP in 2020 % COUNTRYLowerupperlowerupperlowerupper Algeria 41.2188.5 283.71,296.6 0.10%0.46% Egypt 31.2173.9 669.13,728 0.14%0.80% Israel 67.1240.0 159.5571.1 0.08%0.27% Jordan 47.3185.466.7261.60.18%0.72% Lebanon 59.6214.459.4213.60.13%0.45% Morocco 34.9160.7242.51,117.50.19%0.86% Palestinian Territories ------ Syria 34.9159.9 170.4781.6 0.16%0.74% Tunisia 41.7184.6103.8459.40.13%0.57% TOTAL 1,7558,4290.14%0.61% * By Manuel Lago (Ecologic)

37. Conclusions The potential benefits of improvements in the water parameters assessed in this study are substantial. Annual quantified benefits amount to PPP 5.5 - 17 billion in year 2020. These benefits are equivalent to an average 0.4-1.1% of GDP in 2020 Benefits (% of GDP) are highest in Morocco and lowest in Israel. Additionally, there are many non-quantified benefits. 28-06-201137

38. Implications of the benefit assessment Rehabilitate and upgrade existing piped water supply to increase safety and reliability of potable water Extend piped water supply with priority to communities with water quality problems from non-piped water sources Rehabilitate existing sewage networks to prevent contamination of potable water supply and the environment Extend sewage networks (sewage collection and removal) to currently unserved communities 28-06-201138

39. ….continued Assess and identify opportunities for hygiene improvements, especially as benefits young children Increase efforts to develop and implement integrated water resources management plans, especially in high priority river basins (including wastewater treatment, addressing water scarcity, etc) 28-06-201139

40. Thank you for your attention! 28-06-201140