23.04.2012 Seite 1 Page 1
Lessons from public-private-civil
society partnerships to address
shared water risk
Water Security, Risk and Society,
Oxford 18th April 2012
Robin Farrington
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ)
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Contents
1. What is corporate water risk?
2. How can water risk be addressed?
3. What are some of the key lessons learnt?
4. What next?
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Contents
1. What is corporate water risk?
2. How can water risk be addressed?
3. What are some of the key lessons learnt?
4. What next?
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• Treatment costs
• Supply chain costs
• Cost of compliance
• Cost of disruption
• Loss in revenues
• Cost of raising capital
• Poor investment decisions
• Brand damage
Water risks to business are shared risks
Primary risks
Supply chains
Direct operations Investments
Shared risks
Other business Ecosystems Communities Governments
Secondary risks political regulatory ecological litigational reputational market
quantity quality wastewater
Economic impact
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Example risks… Tanzania
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Causes of water risks
• Lack of public sector capacity
• Lack of political will & corruption
• Lack of public education and incentives
• Weak governance – lack of empowerment of water users & accountability of public sector to deliver services
• Lack of regulation & compliance
• Poor water use by others
• Lack of infrastructure cost recovery & investment
• Unsustainable land/water use & ecosystem degradation
• Lack of policy coherence and understanding of water
Primary causes
Root causes
• Risky investment climate
• Unemployment
• Reduced tax revenues
• Reduced economic growth
Primary and secondary risks to business
Conse-quences for
society
Drivers
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German Development Cooperation
in the Water Sector in Africa
Brewery
Example risks…. Zambia
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Contents
1. What is corporate water risk?
2. How can water risk be addressed?
3. What are some of the key lessons learnt?
4. What next?
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Sustainable water management
Complexity
Reducing vulnerability of operations & supply chains
Investing in green or grey infrastructure
Influencing water use of
others
Strengthening governance
Leve
l of
risk
mit
igat
ion
Collective action
Fomalised structure
Institutional
anchoring
Investment Advocacy
A water stewardship response
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.gov
.org
.com
Strengthening governance
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Partnership example 1
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Mining companies
Tailing Ponds
Non mining companies
Dumping areas
Domestic drainage
Upstream
Monitoring station (MINSA
& SEDAPAL)
POLLUTION AGENT RIMAC RIVER
Brewery
RIMAC RIVER
EMERGING
Ticticocha
Lake
Peru
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COMPONENT I Infrastructure improvement for
the aquifer recharge
MODULE 1
Infrastructure improvement for
aquifer natural recharge
Project 1.A
Rimac river right canals
Project 1.B Rimac river left canals
MODULE 2
Infrastructure construction for
aquifer induced recharge
Project 2.A Recharge walls (phases)
MODULE 3
Protection of riverbeds and banks in the lower part of the watershed
Project 3.A Rimac Riverbed
Project 3.B Huaycoloro Stream
COMPONENT II Groundwater exploitation
reduction
MODULE 4
Re-use of treated waters for public
green areas irrigation
Project 4.A EMMSA market and Santa Anita
Project 4.B Green areas in Ate
Project 4.C Green areas in the Cahuide park
COMPONENT III Aquifer monitoring and
assessment system
MODULE 5
Rimac River Water Observatory
(Technical Committee)
Project 5.A – 5.C Aquifer monitoring and
assessment Specialized technical assistance
Expert panel
Aquifer sustainability program
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Partnership example 2
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Slid
e 15
Water savings: private vs public infrastructure
case 1 - cooling tower
blowdown recovery plant
case 2 - pressure
management on main
water header to township
case 1 case 2
$ 50 mill capital $ 0.5 mill
18 Mℓ/day saving 28 Mℓ/day
$ 2.00/m3 o & m $ 0.02/m3
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Partnership Structure
Emfuleni
water
conservation
project
Emfuleni
Municipality Sasol
GIZ
Community
Savings from
reduced
losses
Funding from
ringfenced
savings Seed funding
Reduced risk
Off-setting
Seed funding,
governance,
auditing role
Improved
water security
Emfuleni & GIZ/Sasol
partnership agreement
GIZ/Sasol
Development
partnership
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Municipality
‘10/11 water
demand
(mil.m3/a)
15%
targeted
savings
(mil.m3/a)
Value
(R mil./a)
Emfuleni 82 12 62
Funding model
Sasol
R 5 mil
Seed funds and
skills to initiate a
project to help
achieve
target by end
2014
GIZ / AusAid/
UKAid
R 5 mil
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Contents
1. What is corporate water risk?
2. How can water risk be addressed?
3. What are some of the key lessons learnt?
4. What next?
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Partnerships for risk mitigation –
some lessons learnt
1. Water risks are highly localised and difficult to determine
with global tools
2. A business case is emerging for companies to invest
resources in mitigating risk. They can play a role in
investing in concrete projects and in advocating for
improved governance
3. Real impact on risk will require local collective action,
with collaboration between businesses
4. Success hangs on the interest and capacity of the local
business to engage
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Water risks well
managed
Ris
k m
itig
ati
on
Time
The
Pioneers
The reality…..
The
Pioneers
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Contents
1. What is corporate water risk?
2. How can water risk be addressed?
3. What are some of the key lessons learnt?
4. What next?
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From Germany…
1. BMZ launched an International Water Stewardship
Initiative at Bonn2011 Nexus Conference as a concrete
action to address Water-Energy-Food Security Nexus
2. In design process, but will build on Water Futures
Partnership
3. Purpose:
To develop, support and mainstream multi-stakeholder
collective action initiatives at the watershed level to
address shared water-related risks, in order to support
sustainable economic growth.
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Thank you!