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Final Report fact sheet

This page contains key facts and statements taken directly from the text of the WCD report
The relevant page numbers in the printed report are indicated
* indicates a 'Pull Quote" in the final report

Part I: The Global Review

Chapter One

Today, around 3800 km³ of fresh water is withdrawn annually from the world's lakes, rivers and aquifers. This is twice the volume extracted 50 years ago. P3

World population has passed 6 billion. Projections: a peak of between 7.3 billion and 10.7 billion around 2050 before total population begins to stabilise or fall. P3

50 litres per person per day (or just over 18.25 m³ a year) covers basic human water requirements for drinking, sanitation, bathing and food preparation. In 1990, over a billion people had access to less than 50 litres of water a day. P5

Agriculture accounts for about 67% of withdrawals, industry uses 19% and municipal and domestic uses account for 9%. P5

One third of the countries in water-stressed regions of the world are expected to face severe water shortages this century. By 2025 there will be approximately 6.5 times as many people - a total of 3.5 billion - living in water-stressed countries. P7

Remains of water storage dams found in Jordan, Egypt and other parts of the Middle East date back to at least 3000 BC. P8

By the end of the 20th century, there were over 45 000 dams in over 150 countries. P8

The average large dam today is about 35 years old. P9

Since average construction periods generally range from 5 to 10 years, this indicates a worldwide annual average of some 160 to 320 new large dams per year. P10

During the 1990s, an estimated $32-46 billion was spent annually on large dams, four-fifths of it in developing countries. Of the $22-31 billion invested in dams each year in developing countries, about four-fifths was financed directly by the public sector. P11

About one fifth of the world's agricultural land is irrigated, and irrigated agriculture accounts for about 40% of the world's agricultural production. P12

Half the world's large dams were built exclusively or primarily for irrigation, and an estimated 30 to 40% of the 271 million hectares of irrigated lands worldwide rely on dams. Dams are estimated to contribute to 12-16% of world food production. P13

Hydropower currently provides 19% of the world's total electricity supply, and is used in over 150 countries with 24 of these countries depending on it for 90% of their supply. P14

Globally, about 12% of large dams are designated as water supply dams. P14

Floods affected the lives on average, of 65 million people between 1972 and 1996, more than any other type of disaster, including war, drought and famine. P14

There are 261 watersheds that cross the political boundaries of two or more countries. P15

As dam building accelerated after the 1950s, opposition to dams became more widespread, vocal and organised. P18*

The degree of even handedness applied in considering alternatives to large dams, is perhaps, one of the most contested issues. P23*

One of the central problems - and certainly one of the main causes of stalemate in the debate - is the lack of mutual trust between the key parties involved. P25*

By the early 1990s, it was becoming clear that the cost of controversy could seriously affect future prospects for dams and stall efforts to finance other non-dam water and energy development projects to serve rural or urban communities. P26*

The Gland Workshop brought together 39 participants representing governments, the private sector, international financial institutions, civil society organisations, and affected people in a balance later mirrored in both the WCD and the Stakeholders Forum. P27*

Chapter Two

Cost performance data in the WCD Knowledge base confirms that large dam projects often incur substantial capital cost overruns - for 250 projects examined. The average overrun was half again as much as the projected cost. P39

The bulk of hydropower projects in the WCD Knowledge base have delivered power within a close range of pre-project targets but with an overall tendency to fall short of targets. P49

At current rates, water fees are rarely sufficient to recover both capital and recurrent costs for water supply systems in many developing countries. P58*

Growing concern over the cost and effectiveness of large dams and related structural measures as long-term responses to floods has led to support for integrated flood management as opposed to flood control. P58*

Multi-purpose schemes are inherently more complex, and many experience operational conflicts that contribute to under-performance on financial and economic targets. P63*

There is considerable scope for improving the selection of projects and the operation of existing large dams and their associated infrastructure. P69

Substantive evaluations of project performance are few in number, narrow in scope, and poorly integrated across impact categories and scales. P69

Chapter Three

Dams, inter basin transfers, and water withdrawals for irrigation have fragmented 60% of the world's rivers. P73

As a physical barrier the dam disrupts the movement of species leading to changes in upstream and downstream species composition and even species loss. P82*

In Africa, the changed hydrological regime of rivers has adversely affected floodplain agriculture, fisheries, pasture and forests that constituted the organising element of community livelihood and culture. P83*

Problems may be magnified as more large dams are added to a river system, resulting in an increased and cumulative loss of natural resources, habitat quality, environmental sustainability and ecosystem integrity. P88*

The Cross Check survey found that almost 60% of the impacts identified were unanticipated prior to project construction. P89

Good site selection, such as not building large dams on the main-stem of a river system, and better dam design also played significant roles in avoiding or minimising impacts. P91

Chapter Four

At the planning and design stage, an important social impact is the delay between the decision to build a dams and the onset of construction. This can result in communities living for decades starved of development and welfare investments. P99

The overall global level of physical displacement could range from 40 to 80 million. P104

In India and China together, large dams could have displaced between 26-58 million people between 1950 and 1990. P104

Little or no meaningful participation of affected people in the planning and implementation of dam projects - including resettlement and rehabilitation - has taken place. P106*

Empowering people, particularly the economically and socially marginalised, by respecting their rights and ensuring that resettlement with development becomes a process governed by negotiated agreements is critical to positive resettlement and rehabilitation. P110*

Poor accounting in economic terms for the social and environmental costs and benefits of large dams implies that the true economic efficiency and profitability of these schemes remains largely unknown. P123*

The WCD Case Studies show that the direct adverse impacts of dams have fallen disproportionately on rural dwellers, subsistence farmers, indigenous peoples, ethnic minorities, and women. P124*

Where costs and benefits accure to different groups, the standard procedures for adding up and discounting the expected costs and benefits do not provide an appropriate measure of changes in societal welfare. P126*

Chapter Five

Almost 2 billion people, both urban and rural poor, have no access to electricity at all. P149

Most efficiency measures and technologies are cost -effective at today's electricity prices and the use of full environmental and social costing of electricy supply options makes them even more so. P151*

Among advanced technologies in research and development, microturbines and fuel cell show the greatest near and mid-term promise. P154*

Chapter Six

Once a proposed dam project passed preliminary technical and economic feasibility tests and attracted interest from government or external financing agencies and political interests, the momentum behind the project often prevailed over further assessements. P168*

Total financing for large dams from multi-lateral and bi-lateral development banks comes to more than $4 billion annually at the peak of lending during 1975-84. Although the proportion of investment in dams directly financed by bilaterals and multilaterals was perhaps less than 15%. P171

The total investment in dams by the multilaterals and bilaterals since 1950 is approximately $125 billion. P171/194

A number of key international rivers lack a basin-wide agreement that defines a process for establishing equitable water use between riparian States. P176*

Of the 34 dams in the Cross-Check Survey that involved resettlement of displaced people, only 7 required participation as part of the decision-maiking process. P176

The Cross-Check Survey demonstrates that economic appraisal techniques such as risk and distributional analysis were still mandated for only 20% of large dam projects even in the 1990s. P186

EIA is recorded for less than 40% of dams commissioned in the 1990s. P186

Part II: The Way Forward

Chapter Seven

The dams debate is rooted in the wider, ongoing debate on equitable and sustainable development. P198

The Commission acknowledges that today's perspective on development reflects the benefit of knowledge that may not have been available to past decision-makers. P198

The debate about dams is a debate about the very meaning, purpose and pathway of development. P198

There is a globally accepted framework for setting universal goals, norms and standards. P199

All people are accorded human rights without discrimination by virtue of their humanity. P200

A rights based approach provides a principled and practical basis for mediating development choices among competing interests. P200

Meeting rapidly growing needs for water and energy - particularly in the developing economies of the South - imposes difficult choices on governments. P203

Governments face very real dilemmas in trying simultaneously to satisfy urgent needs and advance the realisation of fundamental rights. P204

The world appears set to move beyond the growth paradigm, which judged progress largely in narrow economic terms. We are moving from assessing public interest in general terms to a focus on improving equity in the spread of costs and benefits from development. P204

The private sector has, by contrast, considerably expanded its role, undertaking functions that were until recently the exclusive remit of government. P205

Civil society organisations are playing an increasingly important role in influencing public opinion P205

Clarifying the rights context for a proposed project is an essential step in identifying those legitimate claims and entitlements that might be affected by the proposed project - or indeed its alternatives. P207

Decision-makers have not always acknowledged the differences between 'taking risk' and 'imposing risk' and between voluntary risk takers and involuntary risk bearers. P207

Indigenous peoples face specific cultural, social and livelihood risks. They bear disproportionate risks associated with projects as they were not included in decision-making processes concerning resettlement, assessing needs or selecting options. P207

Decision-makers faced with scientific uncertainty and public concerns have a duty to provide answers as long as the risks and irreversibility are considered unacceptable by society. P207

Risk bearers must engage with risk takers in a transparent process to ensure that risks and benefits are negotiated on a more equitable basis. P208

Those groups facing the greatest risk from the development have the greatest stake in the decisions, and therefore must have a corresponding place at the negotiating table. P209

A process that is too complex can needlessly delay decisions and deprive potential beneficiaries of the fruits of any of the development alternatives under consideration. However, no process will work unless all of the parties enter the negotiation in good faith. P209

Negotiated outcomes do not replace government decision-making; they are designed to make it substantially easier. P209

Chapter Eight

Failure to recognise the rights of all affected groups, whether legally sanctioned or not, coupled with the significant involuntary risk imposed on the most vulnerable, is central to the dams debate and associated conflicts. P215

Identifying rights and risks and recognising how they affect different parties gives planners an objective basis for identifying stakeholders. P216

Demonstrating public acceptance, and upholding negotiated decisions, is best achieved through binding and formal agreements. P218

Effective implementation of free, prior and informed consent marks a significant step forward in recognising the rights of indigenous and tribal peoples. P219

Many of the controversies over dam projects have focused attention on whether a dam was the most appropriate response to a development need or objective, P221

An early focus on options assessment will exclude most questionable projects. Those that emerge will enjoy wider public support and legitimacy. It can reduce delays and additional costs and conflicts, benefiting all those affected by a project. P222

Avoidance and minimisation of social and environmental impacts must become the fundamental criteria guiding options assessment. P223

One of the most striking features is the persistence of social and environmental problems arising from past projects. P225

In many other cases retrofitting existing dams with more efficient, modern equipment and control systems has achieved significant improvements in benefits, extending facilities and optimising operations. P226

With few exceptions, there has been little or no monitoring of the physical, social and environmental effects of dams. P226

The first post-project evaluation should help confirm and strategically focus the longer-term monitoring programmes and provide 'lessons learnt' for future decisions about plan, design, operation of dam. P227

While new supply options may be needed in many countries, restoring or extending the life of existing dams and, where feasible, expanding and improving services from existing dams provide major opportunities to address development needs. P227

The WCD Knowledge Base includes significant evidence of uncompensated losses, non-fulfilment of promised rehabilitation entitlements, and non-compliance with contractual obligations and national and international laws P228

To exercise their right to seek a remedy, affected people need access to political and legal systems and the means and ability to participate in prescribed ways. P229

Priority must be given to financing a negotiated reparation plan before funding new dam projects in a specific location or river basin in a country. P230

Countries such as South Africa, Senegal and Cameroon have introduced artificial flood releases to maintain downstream floodplains of value to local people. P231

Many dams, particularly irrigation and water supply, do not have operating agreements or licenses. P232

The challenge in licensing is that many countries have underdeveloped legal frameworks and there may be no consensus on the appropriate level of regulation and licensing. P233

The 1992 Earth Summit in Rio de Janeiro, Brazil established the critical link for all countries between a healthy environment and economic development, refuting the idea that this is only a luxury for rich countries. P234

The natural resources associated with rivers directly support natural habitats and, frequently, the livelihoods and cultural values of millions of people worldwide. Rivers may also hold deep spiritual meaning for communities and societies. P235

The flow of water links riverine ecosystems, establishing a continuum from the top of the catchment to the ocean. Upstream water resource developments cannot be separated from downstream implications. P236

Determining what is an acceptable level of risk should be undertaken through a collective political process. P237

A growing number of countries have responded to increasing development pressure on rivers by setting aside certain reaches, or entire rivers, from development. P237

Dam proponents have often over-confidently assumed that mitigation measures will work, rather than making them work. P238

Compensation plans should ensure that population status of species within the region shows net gain. P238

Locally driven processes to establish the objectives of environmental flows will lead to improved and sustainable outcomes for rivers, ecosystems and the riverine communities that depend on them. P239

Non-recognition, or partial recognition, of the entitlements of those identified as affected has resulted in inadequate restitution for losses. P240

Regaining lost livelihood requires adequate lead time and preparation and therefore people must be fully compensated before relocation from their land, house or livelihood base. P242

Adversely affected people should help decisions to identify, select, distribute and deliver benefits. P243

Governments and other stakeholders need to be satisfied that once informed decisions are made, all parties will ensure that they monitor and comply with obligations throughout the life of a project. P244

The first step is to ensure that each particular project participant makes a binding commitment to the criteria and guidelines that apply to them. P245

Ideally, participants should not only accept the WCD recommendations, but also harmonise their criteria and guidelines with those of other bodies. P245

An overarching Compliance Plan is the best way to ensure that compliance activities and measures are effectively pursued and implemented, and should be developed for each project. P247

Social and environmental performance bonds, supported by adequate financial assurances to cover identified resettlement costs and environmental measures should be posted before project work starts. P248

Compliance activities represent a transaction cost with the project; should be treated as such. P249

Experience suggests that disputes over water can be resolved and co-operation developed, even where disagreements in other spheres of international relations remain unresolved. P252

The Commission's message is grounded on the need to obtain the consent and co-operation of riparian States in the management of shared water resources P253

A more equitable and sustainable resolution may be possible by shifting from a primary focus on the allocation of the water resource, to a focus on the benefits that derive from the use of the water, P253

States should embody the principles of shared waters in national water legislation and develop a locally appropriate policy framework for addressing such issues P255

Chapter Nine

The Commission proposes a set of guidelines firmly anchored in examples of good practice from the Knowledge Base to describe how its policy principles can be realised. P260

Turning the strategic priorities and their underlying policy principles into reality requires a new focus for planning and management in the water and energy sectors. P260

The five key stages and decision points provide a framework within which decision-makers and stakeholder groups can be assured of compliance with agreed procedures and commitments. P263

A mix of alternatives that reflects the needs and meets the development objectives has been selected through a multi-criteria assessment of the full range of policy, programme, and project alternatives and included in the preferred development plan. P266

Clearance to tender the construction contract is given by the relevant authority and includes conditions for the award of the contract and operations. Mitigation and monitoring measures are formalised into contracts between responsible parties, and compliance arrangements are in place. P270

Clearance to commission the project is given by the relevant authority after all commitments are met. Relevant elements of performance bond sureties are released. The operating licence is confirmed, including specific requirements for monitoring, periodic review and adaptive management. P272

Chapter Ten

We urge all groups to study this report and discuss how to adopt or adapt its recommendations, bearing in mind that it results from consultations that, in terms of inclusiveness and breadth of scope, are beyond the reach of any individual interest group P311

Following such reviews, organisations and governments are urged to issue a public statement of support for the direction that the report takes P312

Capacity must be built if good outcomes are to be achieved, including strengthening civil society and particularly empowering women to make their voices heard. P313

The Commission is convinced that helping to build the capacity to consider fully all options for water and energy development is as important as implementing any choices that are made. P319

Growing needs and a dwindling resource base, in both quantity and quality, will require many countries to fundamentally reassess their water management policies. P319

We believe we have shifted the centre of gravity in the dams debate to one focused on options assessment and participatory decision-making. P320