Tag Archives: water disputes

How to Manage Water Like Money and Fail: Australia

Australia’s Darling River…provided fresh water to farmers seeking to tame Australia’s rugged interior.  No longer. The Darling River hasn’t flowed for eight months, with long stretches completely dried up. A million fish died there in January 2019.  Kangaroos, lizards and birds became sick or died after drinking from toxic pools of stagnant water.  Australia’s water-trading market is drawing blame. The problems with the system, created more than a decade ago, have arisen as similar programs are being considered in the U.S.

Water crises are unfolding across the world as surging populations, industrial-scale farming and hotter temperatures deplete supplies.  Australia thought it had the answer: a cap-and-trade system that would create incentives to use water efficiently and effectively in the world’s driest inhabited continent. But the architects of water trading didn’t anticipate that treating water as a commodity would encourage theft and hoarding.   A report produced for a state resources regulator found the current situation on the Darling was caused by too much water being extracted from the river by a handful of big farmers. Just four license holders control 75% of the water extracted from the Barwon-Darling river system.

The national government, concerned that its water-trading experiment hasn’t turned out as intended, in August 2019 requested an inquiry by the country’s antitrust regulator into water trading.  Anticorruption authorities are investigating instances of possible fraud, water theft and deal making for water licenses. In one case, known as Watergate, a former agriculture minister allegedly oversaw the purchase of a water license at a record price from a Cayman Islands company co-founded by the current energy minister. The former agriculture minister said he was following departmental advice and had no role in determining the price or the vendor. The energy minister said he is no longer involved with the company and received no financial benefit from the deal.

Since 2007, Australia has allowed not only farmers but also investors who want to profit from trading to buy and sell water shares. The water market is now valued at some $20 billion.    But making water valuable had unintended consequences in some places. “Once you create something of real value, you should expect people to attempt to steal it and search for ways to cheat,” says Mike Young, a University of Adelaide professor. “It’s not rocket science. Manage water like money, and you are there.”  Big water users have stolen billions of liters of water from rivers and lakes, according to local media investigations and Australian officials, often by pumping it secretly and at night from remote locations that aren’t metered. A new water regulator set up in New South Wales investigated more than 300 tips of alleged water thefts in its first six months of operation.  In 2018, authorities charged a group of cotton farmers with stealing water, including one that pleaded guilty to pumping enough illegally to fill dozens of Olympic-size swimming pools.  Another problem is that water trading gives farmers an incentive to capture more rain and floodwater, and then hoard it, typically by building storage tanks or lining dirt ditches with concrete. That enables them to collect rain before it seeps into the earth or rivers.

The subsequent water shortages, combined with trading by dedicated water funds and corporate farmers, have driven up prices. Water in Australia’s main agricultural region, the Murray-Darling river basin, now trades at about $420 per megaliter, or one million liters, compared with as low as $7 in previous years.  David Littleproud, Australia’s water-resources minister, says 14% of water licenses are now owned by investors. “Is that really the intent of what we want this market to be?” he asks. “Water is a precious commodity.”

Excerpts from Rachel Pannett , The U.S. Wants to Adopt a Cap-and-Trade Plan for Water That Isn’t Working, WSJ, Sept. 4, 2019

Not Sharing, even a Glass of Water: the Water Crisis in India

The southern city of Chennai—India’s fifth largest with a population of around 10 million—has been meeting only two-thirds of its water needs for weeks, the product of years of drought and decades of failure to manage the region’s water resources.   Residents have been scrambling around the clock to get water—spending hours chasing government tankers or paying private companies to deliver water.  Recent light rains broke a 200-day streak without rain. But the first month of India’s annual monsoon brought one-third less rain than the 50-year average, the driest June in five years, according to the India Meteorological Department.

The acute water shortage in one of India’s largest cities has been building for decades through a mix of population growth, poor planning and increasingly erratic monsoon rains….

The situation in Chennai reflects a larger water crisis spreading across India. Half the country’s population—600 million people—live in areas where water resources are highly or extremely stressed. About 100 million people living in 21 of India’s biggest cities may see their groundwater exhausted by the end of next year, according to a 2018 study by NITI Aayog, an Indian government policy think tank.  By 2030, demand for water will be double the country’s supply, the report said. And the impact will go far beyond the areas actually affected by water shortages: Almost one-third of the country’s agricultural output comes from areas most affected by water shortages…

The scarcity has led to clashes between neighbors. “No one is ready to share even a glass of water,” she said.

Excerpts from Vibhuti Agarwal and Krishna Pokhare Indians Hunt Through the Night for Water as a Megacity Runs Dry, WSJ, July 6, 2018

Salt Lakes of the World

 

Utah Great Salt Lake has shrunk to a depth of about 14 feet—nearly half its former average since it was settled by the Mormons 170 years ago. Under a controversial engineering plan, the lake would recede even further….State engineers want to siphon off some of the river water that flows into the lake and use it for the Salt Lake City area’s booming population. Proponents say the plan, which calls for lapping up a fifth of Bear River’s current unused flow, is essential for meeting the region’s needs.

But critics note that the diversion would cause the lake to drop by almost a foot, according to state estimates, eventually exposing 30 square miles of lake bed and potentially worsening the dust storms that regularly blanket the region and ruining a fragile wetlands habitat.

The debate echoes concerns heard in many other arid parts of the world. Salt lake ecology is especially delicate and requires a certain amount of fresh water to maintain a saline balance. Brine shrimp, for instance, could die off if the water becomes too salty.

In the Middle East, diversion of the Jordan and other rivers that feed the Dead Sea has shriveled the famous body of saltwater and its once robust tourism. The Aral Sea between Kazakhstan and Uzbekistan has shrunk to about 10% of its original size after diversions.

Critics, including environmental groups and affected businesses, say that under the new diversion plan lake-dependent businesses such as brine shrimp fishing would suffer, as would farmers whose land could be inundated upstream if existing dams are raised to retain more water. In all, the lake accounts for an estimated $1.3 billion in annual economic output, according to Utah State University, much of it from the shrimping industry, as well as mineral extraction and tourism.

The plan would also destroy wetlands along the lake shoreline that provide food and habitat for an estimated eight million birds, said Zach Frankel, executive director of Utah Rivers Council, an environmental group opposed to the project.

But proponents say the diversion of up to 72 billion gallons of water—enough to meet the needs of a city of one million for a year—is needed to forestall anticipated shortages for one of the fastest-growing regions in the country….“If Utah continues to grow, it’s not a matter of if but when we are going to need more water,” said state Sen. Stuart Adams, the Republican majority whip, who sponsored a bill to begin funding the estimated $1.5 billion project.

Excerpt from Utah Searches for Water Solution, Wall Street Journal, Sept. 14, 2017

How to Divide a Lake: Malawi against Tanzania

Over two million families who solely depend on Lake Malawi for their livelihoods are anxiously putting their hopes into an upcoming mediation between Malawi and Tanzania intended to put an end to a longstanding ownership dispute.  The mediation will start March 2013 after both parties agreed in December 2012 to engage the assistance of the Forum for Former African Heads of State and Government, which is chaired by Mozambique’s former President Joachim Chissano.

According to authorities, about 1.5 million Malawians and 600,000 Tanzanians depend on Africa’s third-largest lake for food, transportation and other daily needs. When IPS visited Karonga District, on the shores of Lake Malawi, surrounding communities said they were worried about the increased tension and keen to see a resolution.

Known as Lake Nyasa in Tanzania and Lago Niassa in Mozambique, the disputed water mass is thought to sit over rich oil and gas reserves, according to recent Malawian government reports.  The mineral potential has rekindled a border dispute between Malawi and Tanzania, which has remained unresolved for almost half a century.

The conflict escalated last July when Malawi awarded oil exploration licenses to United Kingdom-based Surestream Petroleum.  And last December, Malawi awarded the second-largest license to SacOil Holdings Ltd. of South Africa, a move that deepened the crisis.  Twice, the two countries tried to resolve the dispute diplomatically, but to no avail.  Both countries are hoping for the best outcome that will settle the dispute, once and for all when mediation begins this month.

Malawi’s first president, Hastings Kamuzu Banda, was the first to claim that Lake Malawi was part of the southern African nation. He based his claim on the 1890 Heligoland Agreement between Britain and Germany, which stipulated that the border between the countries lay along the Tanzanian side of the lake.  The treaty was reaffirmed at the 1963 Organisation of African Unity Summit in Ethiopia and was reluctantly accepted by Tanzania.  Malawi’s Foreign Affairs Minister Ephraim Chiume told IPS that their position is based on the 1890 Treaty and that the African Union in 2002 and 2007 upheld the colonial agreement.  “The Heligoland Treaty gave the entire lake to us and this is what forms the basis of our position and proof that we own the entire lake,” said Chiume.

Tanzania’s position is that the treaty was flawed. Tanzania has remained resolute that it owns half of the lake – saying that the border runs through the middle of the lake excluding the section that lies in Mozambique.  Tanzania’s position is that a partition drawn in the middle of the lake, stressing that this is the practice among countries which share water bodies.  “Tanzania has sought recourse to international law, which indicates that borders are generally in the middle of a body of water… Tanzania should therefore own half the lake,” Tanzanian Minister of Foreign Affairs Benard Membe told IPS in a telephone interview.  Membe said that the treaty was flawed because it denied Tanzanian’s living on the shores of the lake their given right to utilise proximate water and marine resources to earn their daily living.

These are the positions that Chissano and his two colleagues; former South African President Thabo Mbeki and former Botswana President Ketumire Masire will have to consider.

Meanwhile, the dispute has also brought to the fore the impact oil drilling would have on a fresh water lake blessed with over 2,000 different fish species, which attracts scuba divers the world over. Local environmentalists fear that drilling in the lake will damage eco-tourism and the marine environment affecting the fishing region in the northern part of the country.  “It will endanger the social and economic lives of millions of people directly dependent on the lake for water, transport and most importantly fish for protein,” said Reginald Mumba of Rehabilitation of the Environment — a local environmental non-profit

Excerpts from By Mabvuto Banda,Two Million People Hold their Breath Over Lake Malawi Mediation, Inter Press Service,  Mar. 3, 2013