Yoshida 02 Presentation

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DISCLAIMER The views expressed in this presentation are theviews of the speaker and do not necessarily reflectthe views or policies of the Asian DevelopmentBank (ADB), or its Board of Governors, or thegovernments they represent. ADB does notguarantee the accuracy of the data included in thispaper and accepts no responsibility for any

consequence of their use. Terminology used maynot necessarily be consistent with ADB officialterms.



Lessons from IWRM Experiences in Japan

NARBO IWRM Workshop at Hoi An Vietnam23 February 2009

T. Yoshida, Professor, University of Tokyo

Topics

① Post-war Recovery and Infrastructure② Performance of Water Policies for 3 Key Problems③ How Japan Incorporates IWRM Concept into Practice④ Summary: Implications for NARBO Members



Preamble: Rivers in Vietnam and Other Asian Countries: Runoff Coefficient

Similarities: Geology, Climate, Land Use and Culture

Coefficient of River Regime in Asia

0

100

200

300

400

500

600

700

800

900

B e i - j i a n g

J i n - j i a n g

K a l i b r

a n t a s

B e n g a w

a n s o l

o

Y o s h i n o

g a w a

A r a k a w a

S o n g b a

R a j a n g b a

t a n g

G e u m

h o - g a n g

I l o g m a g a t

I l o g p a m p

a n g a

M a e n

a m p i n g

coefficient of river regim

JAPAN

REPUBLICOF

KOREA

INDONESIA

CHINA

MALAYSIA

VIETNAM

PHILIPPINES

THAILAND



4

Topic ① Post-war Recovery and Infrastructure

Reconstruction started from ashes.



5

Hiroshima city after the bomb attack



6

Tokyo after the war in 1945



7

Osaka after the war in 1945



8

Reconstruction from the Ruins



9

War Damages on Industrial Productive Capacity→ How to mobilize capital, technology and institutions

Loss of Industrial Productive Capacity by War

010

20

30

40

50

60

70

Power Iron andSteel

Non-Ferrous

Machine Chemical Fiber OilRefinary

Industry

C

a

tyLo

Ra

o

%

Ratio = (Capacity Loss)/(Assumed Capacity without Loss)



10

War Damages on Infrastructure→ Less damages → A Secret of the Rapid Recovery

War Damage Ratios of Infrastructure

05

101520

25303540

Ports

Canals

Bridges

Railways

Electr

ic Fa

cilities

Gas Fa

cilities

Commun

ication

s

Water S

upply

Road

Weight

ed A

verage

Ratio = (War Damage)/(Assumed Value wi thout WarDamage)



Less Damages on Infrastructure : Quick Recovery of Services

0

100

200

300

400

500

600

700

1935 1940 1945 1950 1955 1960

In

1

Annual Water SupplyTotal Power Generation

Railways Passengers (person-km)Cargo Transportation (ton-km)Postal ServiceGDP



12

Postwar Recovery of Japanese Economy→ Manufacturing Sector Led the Recovery

Postwar Recove ry of Japanese Econom y

0

50

100

150

200

250

300

350

400

1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 19

Year

Index

1934-36=100)

Manufacturing

Agriculture

Export

Import

Consumption(Urban)

GD P

Investment in industrial modernization



13

Structural Transformation in Japan



14

Annual Growth Rates of Infrastructure Demand and GDPin Japan



15

Development Phases in Postwar Japan

Source: Nihon Chouki Toukei Souran, Nihon Toukei Koukai

Loans from WB (1953-66)

31 Projects with $862

million



16

Pictures of WB Financed Projects

Sinkansen Hydropower Shipbuilding Industry

Steel Plant Highways Truck Industry



18

GDP and Dam Development in Japan

D am s C on struc ted in J apan

0

500

1,000

1,500

2,000

2,500

3,000

1602 1867 1899 1925 1945 1955 1965 1975 1985 1995 2001

Y ear/

0

100

200

300

400

500

N u m be r o f D a m s/

R ese rvoir A rea (K m 2)/

S to ratge (1 0 m il m 3 )/

Numbers

/Area(km2)/Volume(10mil m3)

/

/

G

(G D P in trillio n ye n at 19 9 0 c o n stan t pric e )/ 1 9 9 0



19

GDP and Dams by Purpose in Japan

Numbers of Dams by Purpose in Japan

0

500

1000

1500

2000

2500

3000

1602 1867 1899 1925 1945 1955 1965 1975 1985 1995 2001Year/

0

100

200

300

400

500Water Supply

Flood Control

Multipurposes

Hydro Power

Agriculture

Nm

soDm

(GDP in trillion yen at 1990 constant price)/ 1990



Flood Control: Mitigation of Flood Disasters in Japan

0

1,000

2,000

3,000

4,000

5,000

6,000

0

500

1000

1500

2000

2500

3000

3500

4000

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

T

a Numb

o

Dams

0

Fo

Co

o Ca

tymio

m3

An

De

hT

b

Fo

p

so

umb er of Dams in Jap anCap acity of Flood C ontrol Dam s

Death T oll by Floods

Da ta source: (1999); Gr aphed by Imamura & Yoshida

Old R iverLaw mai nly for

flo od control

RiverLaw f or m ulti-purpose

objectives

Ne w River Lawin clusive of

environmmentand e cology

20



Water Supply in Post-War Japan

Institutional, HRD, Investment, O&M

21

1962

Prepared by Yoshida



Impact of Water Supply

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 8 7 5

1 8 8 0

1 8 8 5

1 8 9 0

1 8 9 5

1 9 0 0

1 9 0 5

1 9 1 0

1 9 1 5

1 9 2 0

1 9 2 5

1 9 3 0

1 9 3 5

1 9 4 0

1 9 4 5

1 9 5 0

1 9 5 5

1 9 6 0

1 9 6 5

1 9 7 0

1 9 7 5

1 9 8 0

1 9 8 5

1 9 9 0

1 9 9 5

2 0 0 0

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Note: ” Rate of waterworks installation ” refers to all water

supply systems, including large public water supplies, smallpublic water supplies, private water supply systems, etc.

Coverage of Water Supply System and Death Toll by Waterborne Epidemics

1887 1890

Water supply control measures were implemented atharbors to prevent the spread of waterborne

epidemics such as cholera

1999

1945 1957

1980

1960 More than 50%

WaterworksWaterworks LawLaw

End of The pacific warEnd of The pacific war

The Beginning of modern waterworksThe Beginning of modern waterworksYokohama-CityYokohama-City

Waterworks OrdinanceWaterworks Ordinance

96.4%

P e r c e n

t a g e o f p o p u

l a t i o n s e r v e d

b y w a

t e r s u p p

l y

D e a t h

t o l l b y w a

t e r b o r n e e p

i d e m

i c sPercentage of population served by water supplyDeath toll by waterborne epidemics

More than 90%



Water Quality: Laws, Investment and Performance

1020

30

40

50

60

70

80

90

100

0

1000

2000

3000

4000

5000

6000

7000

1970 1975 1980 1985 1990 1995 2000

Pe

oma

%

In

me

Local Governments

Central GovernmentPr ivate SectorRate of Sewage CoverageRiver Quality PerformanceLake Quality Performance

Note: River water quality by BOD 1mg/l 10mg/l depending on 6 categories with about 2500 sites. Lake water quality by COD 1mg/l 8g/lfor 4 categories with about 200 sites. Data Source: [

Po llution Countermeasures

Bas ic Law 1967

Wa ter Pollution

Pr evention Law 1970

Na ture ConservationLa w on Special

Mea sures for

Pr eservation of Lake

Wa ter Quality 1984

BasicEnvironmental

Law 1993

Environmental Agency 1971 Ministry of t he Environment 2001

23



③ How Japan Incorporates IWRM Concept into Practice

Key Areas for IWRM

Institutional roles

Creating an organizational framework – forms and functionsInstitutional capacity building – developing human resources

The enabling environment: Planning and Finaqncing

Legislative framework – rules to follow to achieve policies and goals

Policies – setting goals for water use, protection and conservation

Financing and incentive structures – allocating financial resources to meet goals

Management instruments: Implementing, Operation and Maintenance

Water resources assessment – understanding resources and needs

Plans for IWRM – broader focus involving multiple sectors and stakeholders

Regulatory instruments – allocation rules and water use limitsEconomic instruments – using value and prices for efficiency and equity

Conflicting resolution – managing disputes, ensuring sharing of water

Information management and exchange – improving knowledge

Social change instruments – encouraging a water oriented civil society24

A 1 i i l l f d f i



Key Area 1 Institutional Roles - forms and functionsJurisdiction of Ministries for IWRM

Local Government (As of April1, 2008)

Prefecture Governments 1 To, 1 Dou, 2 Fu, 43 Ken = 47

Wards + Cities + Towns + Villages = 1788 (as of April 2008) reduced from 3234 in 1995



26

General Theory for National Plan, Sector Plan and Project Plan

Consistency between Plans and Projects

Planning Levels and Activities Information Exchange

Objectives Setting :Policy FormulationNational ObjectivesPolicies and StrategiesValues Ju dgements (Implicit) Indicative Nature National Plan

National PlanningGoals → Sector Resources Allocations

National Priority are given throughDiscount Rates or Subsidies/Taxes Investment/Consumption Ranges of Values Sector PlanForeign ExchangeEmployment CreationEnvironment

Sector PlanningSector Opportunities and Constraints

Project Planning/Selection Criteria

Multi Criteria Project Proposals

Project Planning: Formulation and Design(Executing Agency)

Policy Makers: Political Leadership

Central Planners (Central Planning Office)National Plan

Sector Ministries (Sector Coordination)Sector Plan/Regional Plan

Project Planners (Specialists)Project Plans

Local Governments

(Prepared by Yoshida based on UNIDO Guidelines)



Key Area 2 Enabling Environment:Policies – setting goals for water use, protection and conservation

27

Prime Minister

Minister of Land, Infrastructure & Transport• National Land Council• Infrastructure Improvement Council• Transport Policies Council

National Land Council• Water Resources Development Sub-Council• Land Policies Sub-Council• Sub-Councils for Specially Designated Areas

Water Resources Development Sub-Council

National Land Council Members:6 MPs (House of Representatives)

+4 MPs (House of Councilors)+ 20 Academicians, Businessmen &

NGOs

Sub-Council Members: 11 specialiststo evaluate and comment on “basic

plans” for 6 river basins.

River Basin Committees:To participate in preparing “basic

plans” with the members consistingof Local Governments,

Academicians, andCivil Societies

Setting

goals

Chapters for 6 River BasinsEach chapter is responsible for preparing basicpolicy and development plan, executing waterdevelopment projects, and their operation andmaintenance.

NationalLevel

Basin Level

Implementing Arm for IWRM: River Basin Organization



National Plans and Their Changing Priority

National Plan1956-60 1961-70 1976-80 1979-85 1988-92 1992-965-Year EconomicIndependencePlan

NationalIncomeDoubling Plan

Economic Plan New 7-YearSocioeconomicPlan

Co-ProsperityPlan with theWorld

5-Year EconomicSuperpower Plan

Economicindependence

Fullemployment

Maximumeconomicgrowth

Improved

LifeStandard

Stableeconomicgrowth

Enriched

citizens life

Sustainablegrowth

Contributionto

internationalsociety

Affluentlives forcitizens

Correction

of excessivereserves

Improvedquality of life

Harmoniouscoexistence

with globalsociety

Priority of Water Resources Management

Flood controlDomestic Water Supply

Industrial Water SupplyWaste Water Treatment

Improved Water EnvironmentPublic Participation



Impact of Policies: Mitigation of Flood Disasters

0

1,000

2,000

3,000

4,000

5,000

6,000

0

500

1000

1500

2000

2500

3000

3500

4000

1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

T

a Numb

o

Dams

0

Fo

Co

o Ca

tymio

m3

An

De

hT

b

Fo

p

so

umb er of Dams in Jap anCap acity of Flood C ontrol Dam s

Death T oll by Floods

Da ta source: (1999); Gr aphed by Imamura & Yoshida

Old R iverLaw mai nly for

flo od control

RiverLaw f or m ulti-purpose

objectives

Ne w River Lawin clusive of

environmmentand e cology

29



Impact of Policies: Water Supply

Institutional, HRD, Investment, O&M

30

1962

Prepared by Yoshida



Impact of Water Supply

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 8 7 5

1 8 8 0

1 8 8 5

1 8 9 0

1 8 9 5

1 9 0 0

1 9 0 5

1 9 1 0

1 9 1 5

1 9 2 0

1 9 2 5

1 9 3 0

1 9 3 5

1 9 4 0

1 9 4 5

1 9 5 0

1 9 5 5

1 9 6 0

1 9 6 5

1 9 7 0

1 9 7 5

1 9 8 0

1 9 8 5

1 9 9 0

1 9 9 5

2 0 0 0

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Note: ” Rate of waterworks installation ” refers to all watersupply systems, including large public water supplies, smallpublic water supplies, private water supply systems, etc.

Coverage of Water Supply System and Death Toll by Waterborne Epidemics

1887 1890

Water supply control measures were implemented atharbors to prevent the spread of waterborne

epidemics such as cholera

1999

1945 1957

1980

1960 More than 50%

WaterworksWaterworks LawLaw

End of The pacific warEnd of The pacific war

The Beginning of modern waterworksThe Beginning of modern waterworksYokohama-CityYokohama-City

Waterworks OrdinanceWaterworks Ordinance

96.4%

P e r c e n

t a g e o f p o p u

l a t i o n s e r v e d

b y w a

t e r s u p p

l y

D e a t h

t o l l b y w a t e r b o r n e e p

i d e m

i c sPercentage of population served by water supplyDeath toll by waterborne epidemics

More than 90%



Impact of Policies: Water Quality Improvement

10

20

30

40

50

60

70

80

90

100

0

1000

2000

3000

4000

5000

6000

7000

1970 1975 1980 1985 1990 1995 2000

Pe

oma

%

In

me

Local Governments

Central GovernmentPr ivate SectorRate of Sewage CoverageRiver Quality PerformanceLake Quality Performance

Note: River water quality by BOD 1mg/l 10mg/l depending on 6 categories with about 2500 sites. Lake water quality by COD 1mg/l 8g/lfor 4 categories with about 200 sites. Data Source: [

Po llution Countermeasures

Bas ic Law 1967

Wa ter Pollution

Pr evention Law 1970

Na ture ConservationLa w on Special

Mea sures for

Pr eservation of Lake

Wa ter Quality 1984

BasicEnvironmental

Law 1993

Environmental Agency 1971 Ministry of t he Environment 2001

32

Key Area 2 Legislative framework rules to follow to achieve goals:



Special Measures Act on Concerning UpstreamArea Development 1973

Water Resources Development Promotion Law 1961

Industrial Water Supply Business Law

1958Law on Specially Designated Multipurpose Dam1957

Waterworks Ordinance1890

Electric Power Development Promotion Law1952

Readjustment of Arable Land Act

1899Old River Law1896

Waterworks Law1957

Land Improvement Law

1949

New River Law1964 Revisions of New River Law

1997

Water Resources Development Public Corporation Law 1961 Japan Water Agency

1890 1945

Flood control

+Water utilization+Environment

Agricultural Water

Power Generation

Domestic Water

Industrial Water

1945 1995 1995

Key Area 2 Legislative framework – rules to follow to achieve goals:An Evolution of Water Related Laws (1890-2000)



Japan Water Agency (JWA) as an executing agency of IWRM

River Basin Approach originated from “Aichi Canal Project”

1.Water Resources Development Promotion Law (1961)

Water Resources Development Basic Plan (“Full Plan”) for each river system

2.Water Resources Development Public Corporation Law (1961)

New construction and reconstruction of Water Resources Development Facilities andoperation of facilities

JWA’s Activities

Water utilization•Domestic Water•Industrial Water•Irrigation Water

Flood control

Under the guidance

of Ministers whoSupervises JWA’s

activities



Criticism Against Water Plans: Over Demand Projections

0

50

100

150

200

250

300

350

400450

1 1 1 1 1 1 1 1 1 2 2

Fig 2.11 Projected and Actual Demand for Domestic and Industrial Water Supply

WaeS

y1

mi m3

G

1

293

222

208

GDP(Real)

Year

215

IndustrialWater: Actual Projection

Domestic Water: Actual

Long-termPlan

1978-1990)

Water Plan

2000(1987-2000)

Prepared by Yoshida



JWA as a Manager for IWRM for Major River Basins in Japan

Jurisdiction over

of total population

of gross industrial production

A Wholesaler for Domestic and Industrial WatersA Caretaker for flood control measures

(93%)

(EXAMPLE)Water ResourcesDevelopment Volume

and JWA share



Construction and Management of Water ResourcesDevelopment Facilities (JWA)

Yagisawa Dam Arch ConcreteDam

Tone Barrage

Tone Chuo Canal SaitamaCanal)

Lake Biwa Development

③



Key Area ③ Management JWA’s Role as a Coordinator forComplicated Water Sharing (ex. Tone Canal Project)

If no JWA what happens?

payer managementpayment andarrangement

M A F F

S a i t a m a P r f .

T o k y o M . P

I A ( 1 )

I A ( 4 )

MLIT

MAFF

Saitama Prf.

Tokyo M.P

Gunma Prf.

IA(1)

IA(2)

IA(3)

IA(4)

Number ofConnections:

25

By WAR DEC/JWA (cu rrent sys tem)

MLIT

payer managementayment andarrangement

MAFF

Saitama Prf.

Tokyo M.P

Gunma Prf.

IA(1)

IA(2)

IA(3)

IA(4)

( J W A )

Tone CanalFacility

Nunmer ofConnections:

13

7 MLIT:Ministry of Land, Infrastructure and Transport MAFF:Ministry of Agriculture, Forestry and Fisheries.



Key Area ③ Plans: Process of River Basin Plans



River Basin Plans

k l



River Works Planning Process

d



JWA

Loan

Loan Capital

Repayment from usersAfter Completion

Flood Control Water Utilization

Repayment

Beneficiary Shares

Government Grants

ProjectExecution

Key Area 2 Financing and incentive structures

– allocating financial resources to meet goals (JWA)

Subsidies

Ho to Fi the Tariff for Re en e Generating Water Ser ices



How to Fix the Tariff for Revenue Generating Water Services

Principles:

• Revenue = reasonable cost = cost for efficient operations + fair profit reward

• Beneficiary pays principle: beneficiaries should pay in accordance with thebenefits they receive.

• Self-financing principle: sustainable service delivery without external subsidies.

43

Tariff Decision Mechanism in General

Cabinet Meeting on Tariff

CabinetOffice

AdvisoryCouncil

PriceStabilizationPolicies

Conference

MinistriesConcerned

Service Delivery Agency: Private SectorWater/Sewerage Agency, Electricity/Gas Companies,Transportation Companies, Communications Companies,

Request ApprovalPublicHearing

Consultation

DeliberationInquiry

Verdict

RecommendationRegulatoryAuthorities

PrivateSectorOperations



44

Water Tariff System in Japan (Jurisdiction of Local Government)

Basic water use quantity systemadopted due to the need

for public sanitation

Existing fee system

Basic fee

Basic waterquantity portion

Small supply pipe diameter (13 - 25 mm)

Use quantity

Small

Great

A progressive fee systemis adopted to restraincommercial-scale demand

Metered fee

130 yen / m 3 - 415 yen / m 3

Basic fee

920 yen / month 798,000 yen / month

Small supply pipe Diameter Large supply pipe



45

Demand Control Practiced in Japan

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1 9 7 3

1 9 7 5

1 9 7 7

1 9 7 9

1 9 8 1

1 9 8 3

1 9 8 5

1 9 8 7

1 9 8 9

1 9 9 1

1 9 9 3

1 9 9 5

1 9 9 7

1 9 9 9

2 0 0 1

W

a t e r d i s t r i b u t i o n q u a n

t i t y ( 1 , 0 0 0 m

3 )

0

50

100

150

200

250

300

350

U n i t c o s t o f w a t e r s u p p

l y ( y e n / m 3 )

Maximum daily water distribution quantity (1000 m3)

Average daily water distribution quantity (1000 m3)

Unit cost of water supply (yen / m3)

6.1xincreas

Period of maximum progressive increase factor(December 1978 - October 1981)

Decrease

Decrease

Increase

IWRM S d N i l C h i D l Pl



IWRM Strategy and National Comprehensive Development Plan



Summary: Implications to NARBO Members (1)

• From the institutional evolution and experiences of JWA, “IWRMcould be best implemented by RBO”.

• IWRM could be best started with a multi-purpose water project . Incase of Japan, IWRM is originated from a WB financed Aichi CanalProject in 1959. Post evaluation of the project revealed thatcommunity-based infrastructure projects such as irrigation, floodmanagement, domestic water supply or drainage or environmentalproject can be recognized as “instrument” to enhance community’scapability (creation of trust- based functional networks) or “socialcapital. Public projects are instrument to strengthen communitypower.

• RBO in charge of IWRM has to coordinate with many stakeholdersand to tackle complicated water allocation and cost sharing issus.This gives an opportunity to demonstrate “democracy in practice”,which becomes a foundation for “good water governance”

f



Implications for NARBO Members (2)IWRM and Policy Mix Approach

Along with the changing values of the society, a policy (regulations,investment, and pricing/subsidy) mix approach needs to be timelyimplemented.

Policy Mix consists mainly of:1. Introduction of laws and regulations with proper allocation of

responsibilities among central, local, service delivery agencies,private sector, and civil societies.

2. Adequate water pricing and subsidies need to be introducedreflecting appropriate regional and personal income distributioneffect.

3. Choice of priority investment and financing modality : budgetallocation, subsidies, self-funding, public-private-partnership, etc.depending on value judgment and managerial capability.

4. Technology innovation through public-private partnership5. Human Resources Development by in-house training.



Thank you for your kind attention

Yoshida 02 Presentation

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