Water infrastructure lies at the centre of some of the world’s most pressing challenges, from climate resilience to universal access to safe water. As governments and institutions search for ways to mobilise the trillions of dollars required to meet global water goals, the intersection of engineering, policy, and finance has become increasingly important.
Amit Chanan, Professor of Practice in Engineering at the University of New South Wales (UNSW), brings more than 25 years of experience across the water utility, infrastructure, and investment sectors. His career has included leadership roles in Australia and Fiji, including serving as CEO of the Water Authority of Fiji, and most recently advising governments and utilities worldwide as Senior Water Industry Specialist at the International Finance Corporation (IFC).
Drawing on this experience, he shares his perspective on the challenges shaping the global water sector, from the politics of water pricing to the shortage of bankable projects and the need for stronger regulatory frameworks. He also reflects on emerging opportunities such as digital technologies, climate-resilient infrastructure, and regional collaboration in strengthening water security across the Asia-Pacific.
One of the biggest misconceptions in the water sector is that financing is the constraint, but it isn’t; there is plenty of capital available
Please tell us briefly about your career path and your current role as Professor of Practice -Engineering at UNSW.
I’ve spent more than 25 years working across the water utility, infrastructure, and investment sectors, holding senior leadership roles in Australia, Fiji, and globally. My career has taken me from managing urban drainage in local government, to leading major state‑level bulk water operations, to serving as CEO of the Water Authority of Fiji, where I delivered nationally significant projects and developed the country’s first long‑term Water Sector Strategy.
Climate‑resilient infrastructure is a safer investment, because assets that can withstand shocks deliver more reliable long‑term cash flows
Most recently, as the Senior Water Industry Specialist at the IFC, my work has centred on the investment side of the water sector. I have advised governments and utilities on structuring, financing, and implementing major water programs, with a focus on commercially viable and scalable solutions. This includes work across the Pacific, India, Brazil, and the Philippines, where my focus has been on turning complex water challenges into bankable, investable, real‑world solutions.
As Professor of Practice (Engineering) at UNSW, I bring this practical, international experience directly into the university’s research and engagement activities. My focus is on strengthening the connection between industry and academia by demonstrating how engineering, policy, and finance intersect in the real world. A key part of the role is contributing to the university’s thought leadership in water security, infrastructure delivery, and climate resilience. Through this work, I aim to help increase UNSW’s societal impact in our region by supporting evidence‑based decision‑making and preparing the next generation of engineers and leaders to address the water challenges facing Australia and the Asia‑Pacific.
The global water sector needs $1.3 trillion by 2030 to achieve universal access. What are the main challenges to mobilising this scale of investment, and how can global financial flows be accelerated?
At the heart of the global water sector challenge lies a fundamental philosophical tension about water’s status as a basic human right and public good versus its utility as a critical economic input. In my experience, this duality almost universally creates “politics of affordability" around the world. This politics of affordability creates a downward spiral that vehemently preserves artificially low tariffs intended to protect the vulnerable, ultimately undermining the financial sustainability of the very utilities meant to serve them. This is not a struggle confined to emerging markets; we see the same dynamic play out across Australian cities as well.
A significant part of the problem is the enduring, misplaced belief that "water falls free from the heavens". While the rainfall itself is a gift of nature, everything that happens after it hits the ground is not. The process of capturing water from rivers, treating it to stringent drinking-water standards, and maintaining the extensive pipe networks required to move it to a kitchen tap demands massive, ongoing investment. None of this infrastructure is free, yet the sector continues to grapple with high capital costs and long payback periods that make these vital works difficult to finance.
Cheap sensors and predictive modelling are moving the industry from a "fix-it-when-it-breaks" model to predictive maintenance
Once affordability becomes a political battleground, essential decisions on pricing and infrastructure investment are often dragged into electoral cycles that rarely align with the long-term health of the assets or service reliability.
The most effective way to navigate this tension is to empower and strengthen an independent regulator. Strong, transparent regulation does more than just protect the consumer; it ensures utilities remain financially viable and creates the stable, "bankable" environment necessary to attract the private capital we so urgently need to bridge the global investment gap.
With 91% of water infrastructure spending in developing countries coming from public sources, how can the sector attract more private capital? What changes are needed to make water projects more appealing to private investors?
As explained above, a strong, independent regulatory framework is essential.
One of the biggest misconceptions in the water sector is that financing is the constraint. Quite frankly, it isn’t. There is plenty of capital available from DFIs, pension funds, sovereign wealth funds, and even commercial lenders. Investors want to deploy money into resilient, long‑term water assets. Every investor asks the same two simple questions that you would ask if it were your money being invested: who is paying back the loan? And, what gives me confidence that the revenue stream is stable? Investors look for: transparent tariff‑setting, predictable regulation, clear asset ownership, and enforceable contracts. When these elements are missing, the risk premium becomes too high.
It is the classic "out of sight, out of mind" predicament that has long plagued the water sector’s asset renewal investment
You’ve mentioned that the lack of "bankable" projects is a major barrier to financing. Why do so few water projects reach bankability, and how can project preparation be improved, especially in emerging markets?
At its simplest, a water project is bankable when it provides certainty – certainty of revenue, certainty of regulation, and certainty of delivery. What I mean by certainty:
- revenue certainty is about clear, predictable cashflows and a credible payer;
- regulatory certainty calls for a stable enabling environment with transparent rules;
- delivery certainty is about strong institutions, clear risk allocation, and a capable sponsor; and
- preparation certainty requires high‑quality project feasibility work, including environmental and social safeguards, robust financial models, and well‑structured procurement.
How can water infrastructure projects incorporate climate resilience while staying attractive to investors? Are financiers increasingly factoring climate risks into their investment decisions?
Climate change is no longer a peripheral issue in water infrastructure; it is now a core investment risk. More frequent droughts, floods, and extreme weather add complexity and cost to every project. The reality is that climate‑resilient infrastructure is actually a safer investment, because assets that can withstand shocks deliver more reliable long‑term cash flows.
As cities embrace the concept of smart cities, how do you see water systems being integrated into these urban environments? What role can digital tools play in optimising water management and ensuring sustainability?
The most effective collaboration is practical and is often based on peer-to-peer partnerships, without the need to "reinvent the wheel"
Let me start by exposing my professional bias: in my view, a "Smart City" is only as smart as the resilience of its water system. For decades, water has been the silent utility, buried and forgotten until failure occurs. I recall this vividly from my own career; years ago, when I was responsible for urban drainage, I almost always lost out on maintenance dollars to those managing visible assets like roads and footpaths. It is the classic "out of sight, out of mind" predicament that has long plagued the water sector’s asset renewal investment.
However, IoT and now AI are starting to change the way we have looked at these buried assets. Cheap sensors and predictive modelling are moving the industry from a "fix-it-when-it-breaks" model to predictive maintenance.
What is now already possible in this space is quite amazing. A standout example for me was the “self-healing water network” trial in Reading, UK, where water pipes effectively message the nearest maintenance crew the moment a leak is detected. This allows for surgical intervention before a major burst occurs, transforming water from an invisible liability into an intelligent, bankable network.
For small island states scattered across huge ocean distances, digital tools now make it possible for specialists sitting on the other side of the world to see issues as if they were standing on‑site. Using smart goggles or augmented‑reality headsets, remote engineers sitting in California can look directly at the problem through the eyes of local crews and guide repairs step‑by‑step in American Samoa without anyone needing to fly thousands of kilometres.
FiberSense, an Australian technology, has turned ordinary fibre-optic cables into a giant, city‑wide sensor. By detecting tiny vibrations along the fibre, it can “hear” vehicles, digging, leaks, or disturbances in real time, helping protect underground utilities and monitor urban activity without installing any new hardware.
Digital tools give us a very real chance to leapfrog. Tools like the ones I shared above can speed up the SDG 6 journey by helping countries skip slow, expensive steps and move straight to solutions that are affordable and accessible for everyone.
In the Asia-Pacific region, water challenges are often transnational. How can countries collaborate more effectively to share knowledge and address issues like water scarcity, pollution, and disaster resilience?
The most effective collaboration is practical and is often based on peer-to-peer partnerships. There is absolutely no need to "reinvent the wheel" when a peer has already solved the puzzle.
A powerful model for this is "Utility Twinning", facilitated by organisations like WaterLinks Inc. and the Pacific Water and Wastewater Association (PWWA). Having served on the board of both of these organisations, I have personally witnessed the benefits of such peer-to-peer twinning. A standout example was the partnership between Hunter Water in Australia and the Water Authority of Fiji. By pairing a mature utility with a regional neighbour, technical due diligence and asset management expertise were transferred directly, practitioner-to-practitioner. This builds long-term institutional capacity through shared experience.
Financial collapse of UK’s largest water utility, Thames Water, has shown that adversarial utility-regulator relationships deter investment
The same principle of peer-led learning is evident in the Utilities for Climate (U4C) initiative at the IFC. I had the honour of hosting a key feature of this initiative – the CEOs Roundtable last year. It’s a platform where utility leaders “share their war stories” and learn directly from their peers.
Looking ahead, what are some of the key trends or opportunities that could reshape the landscape of water infrastructure finance in the coming years?
I can offer the following key themes about the landscape of water infrastructure finance from my "crystal ball".
- Collaborative regulation: the financial collapse of UK’s largest water utility, Thames Water, has shown that adversarial utility-regulator relationships deter investment. We will see a shift towards the "Scottish Model" of shared long-term strategy, with regulator and utility working together in creating the stable, inflation-linked environment that institutional investors require to treat water as a reliable asset rather than a political hot potato.
- Technological leapfrogging: much like mobile telephony, emerging markets will bypass centralised legacy systems in the water sector as well. By integrating IoT and AI, "buried assets" will turn into intelligent networks.
- Mainstreaming climate and blended finance: the new standard for high-impact projects is blended finance. This de-risking mechanism will allow funding of resilient infrastructure – like solar-powered treatment plants that commercial banks previously deemed too risky.
- Nature-Based Solutions (NbS) as assets: We will value green infrastructure, like restored mangroves and watersheds, as assets worthy of financial investment. These solutions are now driving the Green Bond and Sustainable Finance market.
