DHAKA, Dec 8, 2025 (BSS) - More than 60 percent of Asia and the Pacific's  population-- about 2.7 billion people-- has been lifted from extreme water  insecurity over the past 12 years, but these hard-won gains are threatened by  accelerating environmental decline and a major financing gap, according to a  new report of Asian Development Bank (ADB). The Asian Water Development Outlook (AWDO) 2025, published today, finds that  renewed political commitment, targeted investments, and governance reforms  since 2013 have driven this progress. But ecosystem decline, climate risks, and funding shortfalls for water  investments threaten to plunge billions back into water insecurity.  Wetlands, rivers, aquifers, and forests that sustain long-term water security  are deteriorating fast. Extreme weather events such as storm surges, rising  sea levels, and saltwater intrusion threaten a region which already accounts  for 41 percent of the world's floods. In recent weeks, parts of Southeast and  South Asia have been hit by devastating floods, said an ADB press release. The AWDO estimates that $4 trillion through 2040-or $250 billion a year-is  needed to meet the region's water, sanitation, and hygiene (WASH) needs  alone. "Asia's water story is a tale of two realities, with monumental achievements  on water security coupled with rising risks that could undermine this  progress," said ADB Senior Director for Water and Urban Development Norio  Saito. "Without water security, there is no development. This report shows we need  to act urgently to restore ecosystem health, strengthen resilience, improve  water governance, and deploy innovative finance to deliver long-term water  security-especially for the neediest communities." he added. The report said South Asia has made steady but uneven progress in rural water  security. Between 2013 and 2025, the population-weighted WASH infrastructure  score rose from 2.8 to 6.0, moving from moderate basic coverage to widespread  basic coverage with some safely managed services.  Health outcomes improved more sharply, rising from 1.3 to 2.4, reflecting  significant reductions in diarrheal disease but still lagging infrastructure  gains.  Across the region, the KD1 status score increased from 4.1 to 8.4, with  Bangladesh, India, and Sri Lanka moving out of the Nascent to the Engaged or  Capable step. Future AWDO reports, drawing on data from 2025 or later, are expected to show  further and more substantial progress.  The long-term impact will depend on service quality, including reliability,  water safety, and equitable access. Bangladesh's SafePaani programme shows  how professional service providers can improve outcomes in schools through  results-based contracts. The AWDO assesses water security through five dimensions: access to clean  water and sanitation for people living in villages and cities; the  availability of water for key economic sectors such as agriculture; the state  of rivers and other natural ecosystems; and protection measures against  droughts, floods, and other water-related disasters.   The region's steady improvement over the past 12 years is starkly  demonstrated in rural India, where 840 million people now have better WASH  services, due chiefly to government programmes.  In the People's Republic of China, government investments in flood control,  rainfall radar systems, and emergency response have significantly enhanced  resilience to water-related disasters. Notable advances have also been made in Cambodia and the Lao People's  Democratic Republic, which have significantly reduced exposure to unsafe  drinking water. In Tajikistan, projects supported by initiatives like the  United Nations' Early Warnings for all have reduced drought exposure and  strengthened national flood and storm management systems. The AWDO noted that progress can be sustained if nature is protected and  integrated into water systems through national river health monitoring,  stronger pollution controls, and better watershed protection.  Stronger governance systems that prioritize prevention will improve climate  resilience, and water systems will be more effective if sub-national bodies  are given the resources and authority to manage them. Efforts must be  inclusive-engaging women and young people-if investments are to succeed. The report finds that current spending on WASH infrastructure covers less  than 40 percent of the estimated US$250 billion needed every year, leaving an  annual shortfall of more than $150 billion.  Closing the gap requires deploying finances in smarter ways, including  through blended finance that pools public and private resources to reduce  project risk and mobilize private capital. Improving the efficiency and  financial sustainability of the water sector can also attract private  investment. This year's AWDO was produced in partnership with the University of Oxford,  the International Water Management Institute, the University of Queensland,  the International Center for Water Hazards and Risk Management, the Global  Water Partnership, the International WaterCentre, Griffith University, and  the IHE Delft Institute for Water Education. AWDO is a comprehensive assessment of water security in Asia and the Pacific  issued every three to six years.  ADB has published five editions of the report since 2007. This year's edition  was supported by the Japan Fund for Prosperous and Resilient Asia and the  Pacific financed by the Government of Japan, the Water Resilient Trust Fund  financed by the Government of Netherlands, and the Urban Resilience Trust  Fund financed by the Government of the United Kingdom. ADB is a leading multilateral development bank supporting inclusive,  resilient, and sustainable growth across Asia and the Pacific.  Working with its members and partners to solve complex challenges together,  ADB harnesses innovative financial tools and strategic partnerships to  transform lives, build quality infrastructure, and safeguard our planet.  Founded in 1966, ADB is owned by 69 members-- 50 from the region.