2023.05.26
The water and sanitation infrastructure must be modernized with innovative technology
The investment debt for drinking water and wastewater (WW) infrastructure continues to grow according to Svenskt Vatten's new investment report. We can't wait, we have to act now. When Sweden invests in new and updated water and wastewater infrastructure, it must be done with a future perspective – it is high time to integrate requirements for smart technology and sustainable solutions in procurement to accelerate the climate transition and build for the future. The water industry's members are part of the solution.
Sweden has long taken clean water from the tap, 24/7, for granted. This is thanks to extensive investments during the 1950s-1970s that are now reaching their technical lifespan in many places. According to Svenskt Vatten's Investment Report 20231 Sweden's drinking water and sewage infrastructure is estimated to have an annual investment requirement of SEK 31 billion, while the annual investment rate is approximately SEK 20 billion. The result is a rapidly growing investment debt with a total increase of SEK 100 billion by 2040 since Svenskt Vatten's latest investment report (2020).
The Water Industry has the expertise, systems and products to do the job and we advocate collaboration earlier in the planning process to ensure clean water at the tap and equal access throughout the country. The water infrastructure should be modernized with innovative technology, which unfortunately is not rewarded satisfactorily in procurement. This is despite the fact that many solutions that would contribute to the climate transition and a more circular economy exist and can already be applied today.
Innovation for transformation
Swedish innovative power is fantastic and there is great expertise among consulting and contracting companies, product suppliers and on the client side. New technology enables the acceleration of the climate transition by reducing energy consumption, purifying water, reducing exposure to harmful substances, scaling up waste management, recycling and so on. But the new products and services need to be procured, installed and put into use in order to contribute to circularity and climate benefits.
Early dialogue as standard in procurement
Public procurement can be an important tool for achieving social policy goals, such as increased sustainability. But too many procurements fall short of the mark.2. For a long time, the Water Industry's member companies have experienced challenges with public procurement in the water and sanitation sector. This has been mapped out by our focus groups in procurement. Many procurements are forced to be cancelled, which is costly and leads to further delays. By continuing the work of making early dialogue the standard in procurements, the problem can be avoided. Existing agreements and new innovations can be evaluated with advantage already during the contract period. Better collaboration at an early stage creates a more secure client situation and provides better value for the investments.
Generational change and skills transfer
Another critical factor in water infrastructure is the supply of skills on both the client and supplier sides. A survey of skills needs at Vattenindustrin's member companies3 shows that already today, a lack of skills prevents companies from responding to tenders, expanding their operations or developing their products and services.
The climate transition in society also requires new types of expertise, which companies in the Water Industry and our industry in general need to secure today. It is therefore a matter of both ensuring knowledge transfer between generations and at the same time introducing new expertise in digitalization, such as automation and cybersecurity.
Suggested actions:
- National coordination is necessary to resolve the investment debt, meet the climate transition, manage the issue of preparedness and implement new EU directives.
A national renewal plan should favor smart technology and sustainable solutions. - Early dialogue should be standard in procurement. Existing agreements and new innovations can be evaluated during the contract period. Afterwards, the time for questions and answers should be used well to ensure that knowledge of the latest technology and other necessary expertise is available.
- Procurement should be formulated so that smart technology and sustainable solutions An assessment objective in procurement should be climate-based. It pays off for both the economy and society to procure sustainably.
- Industry-wide initiatives aimed at primary and secondary schools to profile and increase the status of work in water infrastructure are needed.
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The water industry has created guidelines to facilitate purchasing within the water and sanitation industry and strive towards a more efficient purchasing climate where buyers can procure what they need with good competition and a reduced number of appeals. Take a look at For those of you who procure water and sanitation services – this is how you do it and This is how you as a user get the supplies you need when procuring water and sanitation services..
Sources:
2 Challenges in public procurement in water and sanitation – part 1/ and Challenges in public procurement in water and sanitation – part 2
3 Water Industry Competency Survey 2022