Resources Research

Making local sense of food, urban growth, population and energy

The global water trade, by ship from Alaska to India

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Niger-Men draw water

Niger: Men draw water from a deep well in Zinder. They must make tough decisions as to how to divide the scarce resource between cattle, people and crops. Photo: Anne Isabelle Leclercq/IRIN

The ecological crimes committed in the name of trade and for the benefit of the ‘market’ grow in outrageousness. The latest example of utter irresponsibility, both regulatory and environmental, comes from a company headquartered in the state of Texas, USA, which plans to ship water from Alaska, USA, all the way across the Pacific Ocean, to India, where it plans to set up what it calls its ‘global water hub’.

The alert came on the Triple Pundit site, which quickly explained that the Texan company, S2C Global Systems, plans to ship 11.35 billion litres of water every year from the Blue Lake Reservoir in Sitka, Alaska to the west coast of India and other Asian countries. From there, S2C Global Systems plans to sell the water via “smaller ships that can deliver to shallower ports, like Umm Qasr in Iraq”. Do you smell the hand of US defence contractors like Halliburton here? S2C said the project is expected to begin moving water within six to eight months.

There are a number of obvious questions here. How has a Texan company gained conttrol of an entire lake in Alaska, which is a common property resource? How have the communities and settlements there in Alaska permitted this, or have they? How can US environmental regulation – the EPA for example – permit such commercial exploitation? Who is funding this obscene project – India may be a way-station for S2C now, but the company categorically says India is going to be an important market for its water. But at what cost to Alaska and to India?

S2C says it will sell the water in “20-foot containers with flexi-tanks suitable for pharmaceutical/high tech manufacturing and packaged water (18.9 and 10L) for the consumer markets anywhere containers are delivered in south and west Asia from India.” In a statement dated 07 July 2010, the company said that for “security reasons” the Indian port which is to serve as its “world water hub” will not be disclosed. It will “include a berth for a Suezmax vessel (156,000 cubic meters/41Million USG), an offloading system to a dedicated tank farm and a distribution complex for packaged water. Within 18 months after that we will be able to switch to a very large class vessel (302,833 cubic meters/80 Million USG), as both the ship and the berth for her will be completed within this time frame. Contracts for the distribution hub and ships are being finalised.”

Nepal-children fetch water

Nepal: In some places, children have to walk more than five hours to fetch water. Photo: Naresh Newar/IRIN

The company says: “India itself provides a particularly significant growth market for the packaged waters with a current population of 1.15 billion people, an emerging middle class and an increasing clean water shortage. Sales efforts throughout south and west Asia will continue with travels planned immediately through the region.”

Rod Bartlett, managing partner of Alaska Resource Management and President of S2C Global Systems, USA, is quoted in the statement as saying: “S2C Global has an exciting future in India and the region. After recently spending time in India meeting port authorities and potential distributors, our vision to distribute water globally became real. We fully expect the India World Water Hub to fulfill our minimum expectations of a half a billion gallons sold annually”.

Export Development Canada (EDC), Canada’s export credit agency, announced in March 2010 up to US$10 million in equity commitments to XPV Water Fund Limited Partnership, a venture capital fund focused on investing in the water sector. The press release described the water sector as an “area of significant growth potential for Canada”.

I can’t imagine this profiteering being part of a ‘growth’ strategy that the average Canadian would subscribe to. Meanwhile, what are conditions in countries which companies like S2C say are its world water market?

In India, figures from the Ministry of Rural Development show that the country had enough drinking water for its people in 1951 at 5,177 cubic metres per person per year. But by 2000 India had become a water-deficient country. In 2003, the country had a 25 per cent deficit, at a rate of 1,500 cubic metres per person per year. The deficit is projected to rise to 33 per cent by 2025, unless measures are taken to resolve it.

In Liberia, three out of four Liberians have no access to safe drinking water and six out of seven cannot access sanitation facilities, such as toilets, according to Oxfam. A further US$93.5 million is needed to boost clean water access to 50 percent of all Liberians; and to improve access to toilets to 33 percent – goals set out in the government’s 2008-2011 poverty reduction strategy.

Children draw water in Chad

Chad: Chadians receive US$3 in water aid per capita annually. Photo: WaterAid

In Iraq, there is an acute shortage of water nationwide and a collapsed economy, which makes it very difficult for farmers to do other work. Tribal sheikh Ali Ismael al-Zubaidi from Diwaniya Governorate, about 200 km south of Baghdad, said in an IRIN report he had been having “tough negotiations” over water allocations with another tribe that lives upstream from his. “We have daily problems with water. They are siphoning water with huge electric water pumps and leave only drops for us. Government officials can’t control the regulation of irrigation and stop those who violate their regulations either because of corruption or because they fear for their lives. So we have to solve this issue ourselves.”

In Nepal, according to government statistics, more than 4.4 million people do not have regular access to safe drinking water in rural and urban areas, be it via piped water, wells, rainwater or bottled water. Public health concerns are increasing as a result. Already, more than 10,500 children die before their fifth birthday from diarrhoea, mainly due to inadequate access to safe drinking water, sanitation and hygiene, according to WaterAid. More than 80 percent of diseases are the result of unsafe drinking water and poor sanitation, according to its 2009 report, ‘End Water Poverty in Nepal’.

In 2000 the world pledged that half the 2.6 billion people without safe drinking water and basic sanitation would have access to these basic facilities by 2015, but poor countries will need US$18.4 billion more a year to reach this Millennium Development Goal (MDG), which at this rate will only be met in 2200. In 1997, 8% of overall development aid went to water and sanitation; in 2008 this dropped to just 5%-less than commitments for health, education, transport, energy and agriculture, according to the Global Annual Assessment of Sanitation and Drinking Water (GLAAS) report by the UN Children’s Fund (UNICEF) and the World Health Organization (WHO). Moreover, the bulk of this global aid went to middle-income countries, with low-income countries receiving just 42%, said WaterAid, an international NGO working to provide access to clean water, sanitation and health education.

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