Riyadh, Saudi Arabia - Monday, November 17, 2008

H.E. Engineer Abdullah Abdulrahman Al Husssayen, Minister of Water and Electricity, Kingdom of Saudi Arabia opened the meeting and said increasing water scarcity is pressing a rationalization of water use across the region. His Royal Highness, Prince Willem-Alexander of the Netherlands, Chair of United Nations Secretary-General's Advisory Board on Water and Sanitation (UNSGAB) thanked the Kingdom of Saudi Arabia and participants for attending the Dialogue and stressed the desire of the Board to engage in an open discussion. H.E. Dr. Abu Zeid from the Arab Water Council outlined the state of water and sanitation coverage in Arab Countries. Dr. Fatma El Mallah from the Arab League outlined progress in the Arab League and highlighted the need to include water and sanitation in local development plans. Dr. K. Allaoui from the Islamic Development Bank highlighted the lack of effective demand for water financing. The President of IDB, Dr. Ahmad Mohamed Ali Al-Madani offered the Bank's assistance to implement recommendations for collective follow-up actions. The Dialogue was wide ranging and topics including the following.

Increasing water funding: In light of the fact the Arab States are home to 5% of the global population but only have 1% of the world's fresh water resources, the funding demand for water delivery projects, when compared to other sectors, is rather low. In addition, in national budgets the allocation for water is insufficient. Reasons include the rather low financial return on water projects along with the difficulties to quickly translate positive impacts in budgetary terms. The fact that many Arab States are middle income countries and so have sizable national reserves that they are investing in water delivery was suggested as a possible reason.

Many countries require more expertise to prepare viable proposals for funding: capacity development in this regard is urgently needed. The need for good national policies, legal frameworks and transparent policy processes in order to attract both private and public funding was emphasized. One suggested that if people were willing to pay as much for water as they would pay for a cell phone, all water projects would have adequate funding.

Reaching the Millennium Development water target: Participants noted many Arab States were set to meet the MDG drinking water target. The fact that population growth was outpacing many countries' ability to meet the demand was discussed. In addition, the Region has always and continues to face acute water scarcity. Arab countries were congratulated on their ability to thrive on much less water than water abundant countries.

The International Year of Sanitation: Many Arab countries are not on track to meet the MDG on sanitation with progress lagging far behind that of water. Participants were asked if the IYS was a useful advocacy tool. The fragmentation of government responsibility for sanitation as noted along with a lack of revenue to fund safe sanitation services.

Demand side management: There has been an emphasis on increasing water supply without considering how to manage demand in some Arab States. For example, leakage exceeding 60% is tolerated in some cities despite the top dollar paid for water supply (much produced by desalination). There is a physical limit to water supply which must be acknowledged. Demand side management tools such as leakage control, better metering, public education campaigns were suggested as ways to control demand which also pay a sizable financial return.

Arab League Ministerial Council for Water and Sanitation: Participants welcomed the creation of the Arab League Ministerial Council for Water and Sanitation which would create an excellent point of entry for working together in the future between the Arab League and UNSGAB.

In closing the Dialogue H.E. Engineer Abdullah Abdulrahman Al Husssayen and his Royal Highness, Prince Willem-Alexander of the Netherlands thanked participants for their enthusiastic participation which will pave the way for future collaboration.

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