Almost a third of all Bank projectsapproved since 1997 have been water related. Water lendinggrew 55 percent in commitment terms during the periodevaluated, and project performance has improved steadily,led by a significant performance improvement in the Africaregion. Water has been integrated into many other sectors.The Bank has contributed to improving access to clean water,especially in urban areas, and has developed a business planfor investments in hydropower and dams, especially forAfrica. The Bank is also starting to take the aquaticenvironment more into account during project design, and ithas balanced investments in infrastructure with investmentsin improving the institutions that manage and allocatewater. The Bank's strategy for the water sector hasbeen broadly appropriate, but its application hasunderemphasized some of the most difficult challenges-suchas ground water conservation, environmental restoration, andcoastal zone management-in favor of less challengingactivities like infrastructure development and equipmentpurchase. The Bank's approach to water will faceheightened challenges in the coming decades due to climatechange, the migration to coastal zones, and the decliningquality of the water resources available to most majorcities and industry. This will require some shifts inemphasis. The Bank and its partners need to put moreemphasis on vital and challenging areas such as groundwaterconservation, pollution reduction, and effective demandmanagement. New ways need to be found to help the mostwater-stressed countries make water sustainability acorner-stone of their development. The development communityneeds to help countries shift more attention to sanitation.More strategic development planning and more effectivedisaster risk reduction is needed for low-lying coastalareas. Approaches to financing and cost recovery need to bestrengthened. Finally, data collection and use need to beenhanced in a number of areas.
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