Water Resources Management Financing in Thailand

Sharing Knowledge on WRM Financing in SEA

3 October 2013Yangon, Myanmar

WRM Financing in Thailand

by Dr.Patarapol Kriek-sakul

WRM Financing in Thailand

• Why WRM Financing (Framework)• Status of WR-M in Thailand

– Status of WR– Existing Institutions– Challenges on WRM in Thai Context•Challenges of WRM Financing in Thailand•Conclusions

Water is limited, difficult to control, easily to be polluted, and could cause social conflicts and public health,

therefore water resources management is “everyone business”

Pressing Needs and Challenges on WRM

The OECD Environmental Outlook to 2050 identifies four main challenges that must be addressed through improved management of water resources:

1. Increased competition between water users (farmers, energy suppliers, industries, households, ecosystems) intensifies to access the resource.

2. Untreated wastewater from cities (primarily in non-OECD countries) and effluents from agriculture deteriorate water quality in several regions.

3. The number of city dwellers and the value of economic assets at risks of floods increase.

4. The number of city dwellers without access to water supply has increased over the last two decades. The situation is even direr as regards sanitation.

Four challenges for water management

Four principles provide a framework to help governments ensure adequate financing is available to effectively manage water resources:

o The Polluter Pays principle creates conditions to make pollution a costly activity, to alleviate pollution, and compensate for welfare loss; o The Beneficiary Pays principle allows for the sharing the financial burden of water resources management across public and private actors; o Equity is often invoked to address affordability or competitiveness issues, when water bills are disproportionate with users' capacity to pay; and o Coherence between policies that affect water resources is essential to ensure that policies are mutually supportive and do not work against each other.

Thailand Overview

Land Extent: 514,000 sq. km. (51.4 Million ha.)

River Basins: 25 (254 sub-basins)

Rainfall Received Annually: 1,700 Million Mm3

Water Resource Status

Institutional Framework

Integrated Basin Management Plan

Potential Compilation- Water Resources Potential- Socio-Economic Data

Concept- Integration- Participatory Stakeholders

Integrated Work Plan- Organization Plan- Provincial Plan

- Raw Water Sources Provisionand Development Plan- Water Allocation and Use Plan- Water Sources Conservation Plan- Flood/Drought Control Plan- Water Quality Improvement Plan

- Structure Measures- Non-Structure Measures- Short, Medium and Long-Term Plan

- Dialogue I- Dialogue II

- Dialogue III

- Database- River Basin Modeling

Implementation of IWRM in Thailand

Source: Department of Water Resources (DWR), 2007

Water Supply VS Water Demand

2004 Annual average water runoff in m3 per person per year

In 2004, the population was 62 million and the average water demand was 57,000 Mm3, of which 90 percent was used for agriculture. Water demand in the North-Central and East areas has already exceeded water storage. Water demand is expected to be 77,000 Mm3 in 2024 when the population is expected to reach 73 million.

Increasing Water Demand

In 2004, the population was 62 million the average water demand was 57,000 M (90 % for agriculture)

2024, the Water demand is expected to be 77,000 Mm3, population is expected to reach 73 million.

Ground Water

Water shortage: Future Scenario

Droughts

1989-2003, drought affected 13 million people and destroyed 46 million rai of agricultural land, costing 4.5 billion Baht (an average of 200 million Baht per year).

1989-2003, drought affected 13 million people and destroyed 46 million rai of agricultural land, costing 4.5 billion Baht (an average of 200 million Baht per year).

In agricultural areas, drought can cause serious damage to local productionand to farmers‟ dwellings.

During 1989-2003, drought affected 13 million people and 46 million rai of agricultural land, costing 4.5 billion Baht (an average of 200 million Baht per year).

The cost of the 1999 drought alone was estimated at over 1.5 billion Baht.

Number of villages with risks for drought by region

Farmers facing economic and financial risk due to climate changes and water-related emergencies

about 857,000 agricultural households do not have access to water for agriculture.

only 33 percent of agriculture land is irrigated or has accessto small water schemes.

About two million households benefit from irrigationand small-scale water schemes,

Water quality

More than half of the rivers have acceptable water quality, one-third are degraded or polluted. (WB, 2003)More than half of the rivers have acceptable water quality, one-third are degraded or polluted. (WB, 2003)

Expanding wastewater treatment is very capital intensive and is a major challenge.

From 95 wastewater treatment plants around th country, there are 7 in Bangkok; 84 in municipalities; 2 in Pattaya; and, 2 in sub-districts.

The designed capacity of these treatment plants is approximately 3 Mm3/day, but many of them experience low efficiency due to low BOD of the incoming waste.

Flood risks

World Bank Impact Assessment (2011) Loss: 640,049 M ฿

In Agriculture: 17,842 M ฿ in Industry: 513,881 M฿; in Transport and Communication: 22,879 M฿; in Infrastructure: 42,714 M฿; in Housing and Accommodation: 45,908 M ฿

World Bank Impact Assessment (2011) Loss: 640,049 M ฿

In Agriculture: 17,842 M ฿ in Industry: 513,881 M฿; in Transport and Communication: 22,879 M฿; in Infrastructure: 42,714 M฿; in Housing and Accommodation: 45,908 M ฿

Department of Water Resources (DWR) data suggests that during the past 10 years, floods occurred in about 10,000 villages, of which 312 were classified as high flood risk, where floods occurred 8-10 times a year.

All these villages are located in the North-Central or the Northeast. Most of these were backwater floods (overflow of rivers and streams). There are an additional 1,577 villages atrisk of flash floods due to heavy rain and rapid water runoff.

Up to Date –Institutional Arrangement

Government Budget and WRM investment

Source: Bureau of Budget (2011)

National Budget on Water Resources Management

The total budget for 2010 and 2011 are 1.7 trillion Baht and 2 trillion Baht, respectively. About 0.5-2% have been allocated for water resources management,

Benchmarks-Parameters: Participation Process, Efficiency, Effectiveness,Output, and Outcome have been applied to different types of investments.

Monitoring and Evaluation on WRM investment

Conclusions

1. Collective decision making in Public Policy Process • Water allocation. Flexible but with clear guidelines and regulation. • Access to clean and safe water. Tap water to all communities. Irrigated

water reach the farm plots, especially vulnerable groups or people at the tail ends.

• Multi-stakeholders engagement.

2. Coping with Risks in WRM • Guidelines and careful planning to reduce the flood-drought prone areas. • Improve and have quality control over the natural water resources for the

piped water in the central, north, and northeast regions. • Standardization of underground water use, especially where there is no

service of piped water.

Conclusions (cont’d)

3. Promoting Water governance

Flexible WRM, responsive to the needs of the stakeholders and the local context.

Capacity building and institutional development to find the solutions in water related problems

Legislative framework incorporates indigenous customary law and traditional environmental management procedures.

Technical assistance in drafting the water laws is an immediate priority.

Regular review and amendment of environmental legislation.