Two thirds of the world's poor are found in Asia and the Pacific, and one in three Asians lives on less than one dollar a day. Of the world's population without access to clean water, almost two-thirds live in Asia and an even greater number lack adequate sanitation.

If we are to meet the millennium development goals to reduce by half the proportion of people without access to safe drinking water by 2015 and to achieve a significant improvement in the lives of at least one hundred million slum dwellers by 2020, Asia will need to be the focus of action.

To achieve these formidable targets, new partnerships need to be established. ADB is therefore very pleased to join forces with UN-HABITAT to initiate the Water for Asian Cities Programme.

This collaboration will initially provide about 10 million dollars in grants to raise political awareness, build capacity, implement pilot demonstration projects, create an enabling environment for investment, and prepare investment proposals for selected Asian Cities. Based on these efforts, ADB expects to provide about 500 million dollars in loans for water supply and sanitation projects over the next five years.

ADB has been engaged in this sector through finance and policy dialogue for several decades, and we have gained substantial operational experience. We have learned that investments need to be accompanied by sound regulatory arrangements, conducive policy environments, and strengthened institutional capacity. A major issue continues to be the need for tariff reforms that will allow financial sustainability and promote new investments, taking into account the willingness and ability of poor people to pay for the services.

UN-HABITAT has considerable experience in addressing urban challenges, and in building awareness, providing technical assistance and strengthening institutional capacity. UN-HABITAT's global know-how in these areas will complement ADB's role as the main regional financial institution. I am therefore very excited about this partnership because the combined efforts of our institutions will be more effective than if we acted alone.

Mr. Haruhiko Kuroda has succeeded Mr. Tadao Chino, as the new President and Chairperson of the Asian Development Bank (ADB). He was elected President by ADB’s Board of Governors in November 2004. He officially assumed office on 1 February 2005.

Before joining ADB, Mr. Kuroda was Special Advisor to the Cabinet of Japanese Prime Minister Junichiro Koizumi and a professor at the graduate school of economics at Hitotsubashi University in Tokyo.