In addition to water supply needs, there is a growing need for investment in the infrastructure required to deliver water to the end user and transport wastewater back to treatment plants. This vast network of pipes in developed countries – some well over 100 years old – is deteriorating and badly in need of repair. In the developing world, basic infrastructure is still lacking, particularly for wastewater treatment, though in many parts of the world, poor urban residents still buy water from a truck, because there is no piped tap water to their homes.
- The U.S. EPA, in its “Gap Analysis,” said $390 billion will be needed to update or replace existing water systems and build new ones over the next 20 years.
- In its bi-annual “Report Card” on America’s infrastructure, the American Society of Civil Engineers gave a D- to drinking water, noting that the U.S. faces an $13 billion annual funding gap to replace aging facilities and comply with drinking water regulations. It gave a similar D- grade to wastewater infrastructure.
- The American Water Works Association estimates that there are 250,000 to 300,000 water main breaks each year, and the number is rising as infrastructure ages.
- The Chinese government says it will need $30 billion in investments in the wastewater sector alone from 2006-2010. It has build 700 wastewater treatment plants since the 1980s, but these only treat 46% of urban municipal wastewater.
- In India, the water supply in most cities is still intermittent, usually on between two and four hours per day. The Nehru National Urban Renewal Mission, is expected to invest $11 billion in developing infrastructure in 63 of the largest cities, with an emphasis on water supply and sanitation.
- The UN estimates that the total annual spending on water infrastructure by developing countries needs to more than double, from $75 billion currently to $180 billion.
While the needs for infrastructure investment are great, funds are limited and political support for raising water and sewer rates to cover investment is also limited. Nevertheless, the issue is gaining greater attention worldwide, and it appears that the growth rate in infrastructure spending should meet or exceed GDP growth in most of the key global economies.
