The three Ps for a blue planet
Despite a widespread crisis of confidence inspired by the failures of water-industry privatisations across the planet, private water companies' profit margins remain impressive. To deal with the demands of an ever more crowded, urbanised planet, governments must work more effectively with the private sector to ensure that the outsourcing of public services like water is a seamless process.
Overview
With increasing numbers worldwide living in urban centres, meeting people's water needs without harming the environment has become a more serious issue than ever.
The numbers are alarming: The world population increased fourfold over the 20th century, but the amount of freshwater it used increased nine times over; as of 2010, more than one billion people lack access to clean water; 80% of all disease is borne by dirty water; by 2030, the number of people living under severe water stress is expected to rise to 3.9 billion, according to the Organisation for Economic Co-operation and Development (OECD).
In 2050, nine billion people will be sharing the planet's resources; feeding them - and growing crops for biofuels - will spur even greater demands from agriculture, which already takes up 70% of available fresh water. The latter is also waning due to a warming world; if sea levels rise as scientists predict, coastal regions' aquifers will be affected. The trend towards urbanisation further exacerbates the problem.
Both developing and developed countries require huge investment capital to meet the basic water needs of their populations. Providing access to drinking water and sewerage, conserving resources and building reservoirs and dykes to cope with water stress and water excess would cost rich countries alone around US$200 billion per year, according to estimates.
Mobilising the resources is likely to be one of the greatest challenges we face - and governments can't tackle it alone. The way drinking water is managed is changing worldwide. To square public need with private capabilities, public-private partnerships (PPPs) are formed, so that need is met and a profit is made.
The global water market, including wastewater treatment, desalination plant construction and water recycling, is estimated to be worth around US$316 billion, according to a 2008 estimate by Morgan Stanley. Surprisingly, the private sector currently operates only a small amount of the global water supply, serving about five percent of the world population. But their revenues are growing exponentially.
For PPPs to entice the private sector, companies need to be assured of return on investments, because these are high and irreversible. According to the WHO there is a particularly high return on investment in clean water projects, with every US$1 spent on water and sanitation bringing economic benefits averaging between $7 and $12.
According to a World Bank report, only 7% of all developing country water projects with private sector participation were cancelled or distressed between 1990 and 2004. For those that failed, privatisation advocates say, it was likely because corrupt or incompetent governments used private companies as scapegoats for their own legacy of mismanagement. Corrupt or not, governments cannot substantially increase water provision unless they are assisted by the private sector.
Mature economies like Singapore bear little internal political risks. A Nanyang Technological University Singapore survey, The impact of political risks on PPP opportunities in Asia, noted that in developing Asian countries there will continue to be increasing PPP opportunities between 2016 to 2025, with peak opportunities in the matured economies of Singapore, Japan and Korea between 2010 and 2015.
With a land area of just 700 sq km, Singapore does not have the watersheds and natural rivers from which to draw water, and must therefore buy a large part of its water requirement from neighbouring Malaysia. To ensure long-term water security, the government has invested hundreds of millions to build water-related infrastructure, including a 7,000km drainage network which directs rainwater into 15 reservoirs, and four plants that recycle sewage water. Using membrane technology, the recycled ultra-clean product has been dubbed "NEWater" and can now meet 30% of Singapore's total water demand.
To meet an ever busier, urbanised and industrialised world's water needs, solutions like those attained in Singapore are going to have to be repeated all over the planet. Of course, it may be that the R&D work now being done in this tiny island state, will reach far beyond its shores to solve some the world's most pertinent water challenges.
Facts on the ground
As Khoo Teng Chye, the chief executive of Singapore's Public Utilities Board (PUB), told the media in 2009, "Singapore... has become a hub for water knowledge and water expertise in the region". Indeed, the country has turned two-thirds of its landmass into a veritable catchment area for the copious rain that falls all year round.
Singapore's investments in the water sector have created a spinoff industry which is seeing the country becoming a centre for research in all things aqua. Several conglomerates have now set up research centres to develop new global water solutions. These include industry heavyweights General Electric and Siemens, who join a number of R&D-ready local rising stars.
Hyflux is one of these. As a technology-driven environmental company, Hyflux has spearheaded the development of advanced membrane technologies to provide cost-effective solutions for both municipal and industrial water needs. Going forward, Singapore-listed Hyflux will leverage on its membrane know-how to push frontiers beyond water, such as in the extraction of valuable resources from waste materials.
Hyflux first built up its track record through PPP filtration and desalination projects with PUB. Then it went global; the firm has now installed their membranes in more than 1,000 plants across the globe, while building the world's largest seawater desalination plant in Algeria. Recognising its near-neighbour's need for more and better water management, Hyflux has, at last count, a portfolio of 44 Chinese water assets worth US$441 million.
Like Hyflux, Siemens Water is developing new-generation membranes, suitable for recovering used water so as to reduce our dependency on natural sources. The German conglomerate is developing improved water treatment technologies at its new Global Water Research and Development Center in Singapore to address the global challenge of water scarcity and wastewater discharge.
According to Siemens' research centre's director Ruediger Knauf, "Singapore provides a very unique and favourable environment... because of the country's advanced water management needs, its continued investment and contribution to water technologies and research, and its goal to be a global hydrohub."
The Singapore difference
Singapore, a land which 40 years ago rationed its scarce water resources, has had to be creative to attain water security. Billions of dollars have been invested in water-catchment and recycling technology to make this possible. All this effort had an unintended effect: Singapore now plays a major role in recycling used water - an emerging industry.
With government support and private sector participation, Singapore is set to become a global hydrohub. Both local companies and the international organisations that have been attracted to its research centres, are now selling new water technology discoveries to the rest of the world.
One of the faster growing in the world, Asia's water market is worth an estimated US$120 billion a year, according to Kerry Murphy of GE Water & Process Technologies, a unit of General Electric (GE). His company expects world demand for clean water to triple by 2030, and it is looking to cater to this demand through improved research and development capabilities in Singapore.
GE Water, a unit of GE Energy, established the Singapore Water Technology Centre in 2009 with the National University of Singapore. In an effort to develop safe drinking systems to many parts of the region, GE scientists and engineers are now working on low-energy seawater desalination, water reclamation and more efficient water use.
Water companies looking for an Asia-Pacific base to pursue their R&D, or sell solutions to a rapidly urbanising region, would be wise to consider a regional hub that has undergone its own water miracle - a real-world example of how to make PPPs and industry-academic collaborations work, and work successfully.
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Posted by Noe, UnitedStates
I have a great water saving idea for a product not yet in the market. I think every household should have one for it would save water in a daily basis. I need a manufacturing company who would be interested to get involved.
Posted by Alistair, UnitedKingdom
Dear Madam/Sir,
I have just visited your excellent website purely by chance and did not see any reference to grey water being used to flush toilet systems (other than in Prague, it seems) Is it a local venture or more widely ventured idea? Locally, and by that I mean here in the UK, our own water company has decided (without any consultation) to build in a compulsory charitable donation to the 3rd world......ok if it was discussed but it wasn't even mooted. The stat. about the water needed to 'make' one hamburger is unbelievable. And totally unrealistic!
That's enough for today, many thanks for your time, Mr A Kewish, United Kingdom
Posted by Nick, UnitedKingdom
I need a little help, I'm acting on behalf of a client that is considering greywater recycling for their commercial jet wash facility, can anyone recommend a company that can undertake the greywater recycling to substantiate a water reclaim system.
Many thanks
Nick
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Posted by John, UnitedKingdom
In UK water tanks in the roof are being thrown away.
Its a pity we don't store and use rain water to flush the toilet.
The reason the tanks are being thrown away is because of the increase in water meters for each house, occasionally the meter shows that the tanks over flow at alarming cost, but only once in a while.
With smart water valves it could be OK.
Posted by Michael, UnitedStates
How do I get involved as a leader in global business development?
Michael J. Dergnace, Sr.
1-412-915-5185
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Posted by Ronda, UnitedStates
Water is one of the most valuable assets in the world. People seem to take it for granted using huge amounts of water to bring up and process petroleum as well as corn to be used as a source of energy also. One day far too soon the world will wake up as more and more cities begin to fight for rights to water. They never think about what they can do to make water. People are so greedy for money and riches in the US. They fail to recognize the true value of water. How can a diamond keep a person alive? How silly we humans are! Hurray for Singapore.
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Posted by John, UnitedStates
Having had the pleasure to visit the NEWater Pilot Plant back in 2003, I was fascinated by the ability of Singapore's hydro-engineers to create a facility able to create such large volumes of pure water using micropore membrane technology. The product was so pure, it had no discernable taste to it. To appeal to Singaporean tastes, it was pumped back into outside reservoirs to allow it to absorb some of the natural minerals to give it more of a natural flavor.
Additionally, the microbial purity is such that when I visited the plant in 2003, I brought back to the US several bottles of NEWater which are currently sitting on a shelf right this moment in my office as clear and pure as the day it was "created".
Posted by Amel, UnitedStates
hello
my name is Amel and i am a meintenance in Portland OR.
There is one thing that i like about my job ( and only one thing) and that is energy efficiant light boulbs and super saving faucet spray. 1.0 gpm.
i have chice to choose what i like , and i like to save water and electricity
i just think that we dont have that much water , drinkiable water as we think we do
and i would like us all to start saving more.
i have a brick in my toilet and flesh it every 2nd or 3 time . i know it's gros but i lowered my usige from 12000gal to 8000 or sometimes 9000gal of water in 3 family maber
save the water save the world
Posted by ALAN, UnitedStates
Singapore's NEWater concept is by far one of the most important advances on the planet to ultimately save our water and our world. The world's most "green" environmentally correct wastewater-recycling systems are being manufactured (for over 12 years) by Global Water Group in Dallas, TX (www.globalwater.com). Global has been building these systems that eliminate all sludge and produce the highest quality potable water (no odor and superb taste) on a limited basis for the oil and gas industry, for the U.S. Military (Special Forces, Navy Seals, etc) and now have delivered their first unit to, of all places, Singapore. Global, using its modular design process, is now preparing to market to municipalities throughout the world.
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Posted by Azzam, Syria
I like too much to share in the efforts to keep our planet's invirnment in HARMONY
Posted by gregory, UnitedStates
I'm really pleased as I worked in the water industry,there's to much fresh water being wasted,and polluted,I was under the impression there were desalinization plants,this is actually one area that all government bodies need to safeguard,anyone whom sells out should be highly discriminated against and held accountable for their actions
Posted by Stellina, Singapore
The concept of NEWater being recycled sewerage water is undoubtedly hard to digest for many Singaporeans. I believe that more can and should be done to bring about awareness of NEWater so people will be more receptive to it, as it is indeed a really great solution to the water crisis.
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Posted by Emily, Singapore
agree with you. Newater tastes just like any water. dont think the govt could/ should mask the fact that it is recycled water. think its more like people just can't, in their minds, get over the fact that it is recycled water so they dont dare to drink.
Posted by Kitty, Singapore
I think it's great that Singapore started the initiative to treat sewage and turn it into drinking water. But I thought the way it was introduced to the public could've been handled better. Too many criticisms on NEWater's odour and taste was seen on forum boards online, but honestly if put to a blind test, I don't think anyone could've smelt or tasted any difference. More awareness-raising on our global water crisis needs to be done so that more people can accept drinking it.
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MAY 201216
Posted by PETE, UnitedStates
Water can be. Had Google NAWAPA, there is a bunch of web sites on how to get water from Alaska. Maybe if Singapore could benefit is to push U.S., to make it happen and put a lot of your people to work and you could help the economy for your country in many ways if we can get water for the lower 48 states. Thank you.
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MAR 201202
Posted by Ged, UnitedKingdom
Combi Boilers are the reason water Tanks in roof spaces are being removed ,nothing to do with leaking Ball Valves causing water Waste.
However Combi Boilers in themselves cause a lot more water to run to waste before it runs hot. It's done to supposedly save energy which is a debatable point as the boilers are twice and sometimes more powerful than the previous conventional boilers using a Storage Cylinder.
I personally think there should be an honest assessment comparison of the Combi versus Conventional type systems , to include manufacturing costs and longevity of boilers and parts costs inc water consumption.
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JAN 201230
Posted by Greg, UnitedStates
On the future of water production, there are new air to water systems, as well as desalination systems, that will provide as much clean water as any nation will ever need, provided the public awakens, and demands governments adopt these advanced, available systems. One friend of mine, www.biohomes.net developed his 'AirWell' system to cheaply desalinate seawater, and it can also pull water from atmospheric moisture, even under conditions of low relative humidity. His BioHomes produce water and power for people living in them.
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