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Review of the investment attractive of the water sector

Water sources are one of the main resources consumed by mankind. After all, water is the most important component of human life. Day after day, urbanization is gaining momentum, which invariably leads to an increase in the level of consumption of water reserves. The increased level of water consumption against the backdrop of the depletion of the world's water reserves is actively affecting the growth of the profitability of this market. It is not new that fresh water on our planet is only 1% of the total water resources. Quite soon we will face an acute shortage of this resource, but, in spite of the further aggravation of the situation, the production of fresh water is a promising sector, as the investment attractiveness of the world water market will intensify, despite the low competition.The deficit of fresh water in the first place will be provoked by the global growth of the world population and, accordingly, the increasing demands for natural resources. According to the information posted on the website of the International Water Management Institute for the last century, the level of fresh water consumption is 6 times greater, and in 40 years will reach 12 times.The International Water Management Institute has developed a water stress indicator. According to this index, the level of freshwater consumption is characterized in terms of compliance with environmental standards. The scientists determined that approximately 50% of the average annual river runoff in basins of various types should be untouchable in freshwater ecological systems to maintain them in a stable state. This rule does not work in countries of Asia and North Africa, North America, Europe and Australia. The number of people living in river basins with a high ecological load will only increase due to the growth of the world population.At the moment, several investment-attractive regions can be identified for financial injections into production and freshwater logistics in terms of water availability and population security.The InVenture Water Index combines four indicators that characterize the region's investment attractiveness from the perspective of developing water supply systems: renewable domestic freshwater resources, the balance between consumed and renewable water resources, and the gross domestic product per capita. The most promising countries for investing in freshwater production are: the United Arab Emirates, Qatar, Bahrain, Saudi Arabia, Israel, Jordan, Oman, Yemen, Libya, Mauritania and other countries.The total cost of production and storage of fresh water is about 80 billion US dollars and will increase in the short term at least twice. Also we want to note that for today the annual turnover of the world market of fresh water is estimated at more than 500 billion dollars. USA.The production of fresh water is not an easily accessible resource and is a fundamental sector, as about 400 world companies are involved in the water supply sector. This market can easily be compared with the production of electricity and oil production.Among the most famous and successful players in the water assets market, we will highlight the companies Pictet-Funds GmbH (Pictet-Water), Invesco PowerShares Capital Management LLC (PowerShares Global Water Portfolio), Guggenheim Funds Investment Advisors LLC (Guggenheim S & P Global Water Index ETF), BlackRock Asset Management Ireland LLC (iShares S & P Global Water), Calvert Investments, Inc. (Calvert Global Water Fund), First Trust Advisors LP (First Trust ISE Water Index Fund).Investing in the production of fresh water by desalination of sea water is also gaining popularity. Many companies in connection with the achievement of high energy efficiency technologies have been able to reduce the high cost of desalination and are directly benefiting from increased demand for fresh water.Also, the directions of venture investment in the creation and development of eco-technologies in the world water sector are becoming quite popular.Investments in the water sector affect 4 main areas: water management, effective water use (treatment and reuse) and effective water consumption, the relationship with agriculture. Investors are world funds, private companies and international financial organizations.Water sources are one of the main resources consumed by mankind. After all, water is the most important component of human life. Day after day, urbanization is gaining momentum, which invariably leads to an increase in the level of consumption of water reserves. The increased level of water consumption against the backdrop of the depletion of the world's water reserves is actively affecting the growth of the profitability of this market. It is not new that fresh water on our planet is only 1% of the total water resources. Quite soon we will face an acute shortage of this resource, but, in spite of the further aggravation of the situation, the production of fresh water is a promising sector, as the investment attractiveness of the world water market will intensify, despite the low competition.The deficit of fresh water in the first place will be provoked by the global growth of the world population and, accordingly, the increasing demands for natural resources. According to the information posted on the website of the International Water Management Institute for the last century, the level of fresh water consumption is 6 times greater, and in 40 years will reach 12 times.The International Water Management Institute has developed a water stress indicator. According to this index, the level of freshwater consumption is characterized in terms of compliance with environmental standards. The scientists determined that approximately 50% of the average annual river runoff in basins of various types should be untouchable in freshwater ecological systems to maintain them in a stable state. This rule does not work in countries of Asia and North Africa, North America, Europe and Australia. The number of people living in river basins with a high ecological load will only increase due to the growth of the world population.At the moment, several investment-attractive regions can be identified for financial injections into production and freshwater logistics in terms of water availability and population security.The InVenture Water Index combines four indicators that characterize the region's investment attractiveness from the perspective of developing water supply systems: renewable domestic freshwater resources, the balance between consumed and renewable water resources, and the gross domestic product per capita. The most promising countries for investing in freshwater production are: the United Arab Emirates, Qatar, Bahrain, Saudi Arabia, Israel, Jordan, Oman, Yemen, Libya, Mauritania and other countries.The total cost of production and storage of fresh water is about 80 billion US dollars and will increase in the short term at least twice. Also we want to note that for today the annual turnover of the world market of fresh water is estimated at more than 500 billion dollars. USA.The production of fresh water is not an easily accessible resource and is a fundamental sector, as about 400 world companies are involved in the water supply sector. This market can easily be compared with the production of electricity and oil production.Among the most famous and successful players in the water assets market, we will highlight the companies Pictet-Funds GmbH (Pictet-Water), Invesco PowerShares Capital Management LLC (PowerShares Global Water Portfolio), Guggenheim Funds Investment Advisors LLC (Guggenheim S & P Global Water Index ETF), BlackRock Asset Management Ireland LLC (iShares S & P Global Water), Calvert Investments, Inc. (Calvert Global Water Fund), First Trust Advisors LP (First Trust ISE Water Index Fund).Investing in the production of fresh water by desalination of sea water is also gaining popularity. Many companies in connection with the achievement of high energy efficiency technologies have been able to reduce the high cost of desalination and are directly benefiting from increased demand for fresh water.Also, the directions of venture investment in the creation and development of eco-technologies in the world water sector are becoming quite popular.Investments in the water sector affect 4 main areas: water management, effective water use (treatment and reuse) and effective water consumption, the relationship with agriculture. Investors are world funds, private companies and international financial organizations.

The main problem of the Ukrainian water market is the fact that about 90% of the consumed water does not meet the generally accepted world quality standards.For our country, priority areas are: reducing the load on fresh water sources, increasing the volume of production of drinking water, introducing new, highly efficient energy technologies, upgrading old water supply systems.
According to the plan of the state program "Drinking water" for 2011-2020. Already in the next year it is planned to provide investments in the amount of 8 billion UAH. The main objective of the project is the reconstruction and construction of water intake facilities, the introduction of innovative technologies, the introduction of water purification stations in the centralized water supply system. Purified drinking water will primarily be supplied to pre-school, school and medical institutions. Also, the government is considering the possibility of launching a project for the construction and modernization of main water pipelines.Another national project "Quality Water" is aimed at providing high-quality drinking water to the population.The project provides for the development of a network of 230 thousand automatic machines for the sale of artesian water in 15 cities of Ukraine for 5 years.The total amount of required investments for the project is 3 billion UAH. It is envisaged that the share of private investment in the project should be from 65%.Summing up, it should be noted that the investment attractiveness of both the world and Ukrainian water resources market is developing dynamically every year. Increasing the level of water consumption, both on the part of the population and in many industries, against the backdrop of water shortages will affect the growth of the profitability of this sector. A separate factor in activating the development of drinking water production will be the continuing deterioration of water quality due to the deterioration of the main water communications and the absence of significant budget infusions for their improvement.The main problem of the Ukrainian water market is the fact that about 90% of the consumed water does not meet the generally accepted world quality standards.For our country, priority areas are: reducing the load on fresh water sources, increasing the volume of production of drinking water, introducing new, highly efficient energy technologies, upgrading old water supply systems.
According to the plan of the state program "Drinking water" for 2011-2020. Already in the next year it is planned to provide investments in the amount of 8 billion UAH. The main objective of the project is the reconstruction and construction of water intake facilities, the introduction of innovative technologies, the introduction of water purification stations in the centralized water supply system. Purified drinking water will primarily be supplied to pre-school, school and medical institutions. Also, the government is considering the possibility of launching a project for the construction and modernization of main water pipelines.Another national project "Quality Water" is aimed at providing high-quality drinking water to the population.The project provides for the development of a network of 230 thousand automatic machines for the sale of artesian water in 15 cities of Ukraine for 5 years.The total amount of required investments for the project is 3 billion UAH. It is envisaged that the share of private investment in the project should be from 65%.Summing up, it should be noted that the investment attractiveness of both the world and Ukrainian water resources market is developing dynamically every year. Increasing the level of water consumption, both on the part of the population and in many industries, against the backdrop of water shortages will affect the growth of the profitability of this sector. A separate factor in activating the development of drinking water production will be the continuing deterioration of water quality due to the deterioration of the main water communications and the absence of significant budget infusions for their improvement.