The Promise of Connecting Water -- Japan's Water Utilities at a Crossroads (2020s)

The Promise of Connecting Water -- Japan's Water Utilities at a Crossroads (2020s)

Japan's water utilities are now facing a major sustainability crisis. Water pipes and facilities constructed during Japan's period of rapid economic growth are reaching the end of their useful life (40-50 years), and approximately 17% of water pipes nationwide have already exceeded their legal service life. Within the next 20 years, it is expected to reach about 40%.

In addition, demand for water is declining, especially in rural areas, and the current situation of declining usage fee revenues is also serious. Since maintenance and management costs cannot be reduced, the financial situation is becoming increasingly strained. In addition, the engineers responsible for waterworks projects are aging, and approximately 40% of them are expected to retire in the next 10 years, making it imperative to secure professional human resources.

In addition, water rates in Japan are extremely low even by global standards, and as a result of the low prices, the country has not been able to secure sufficient funds for the necessary equipment upgrades. The risk of natural disasters is also increasing, and delays in disaster prevention measures to prepare for damage to facilities caused by earthquakes and floods are becoming apparent.

Against this backdrop, the government is promoting wide-area cooperation and private-sector consignment (concession method). In particular, the government has set a goal of expanding wide-area cooperation to cover more than 30% of the nation's water supply system by 2040.

Sendai City's Challenge: Wide-Area Cooperation and Disaster-Ready Water Shields

Sendai City is working with neighboring municipalities to improve the efficiency of its water supply business. By consolidating facilities and integrating operations, the city is trying to establish a system that can maintain a stable water supply system with a limited number of staff while keeping operating costs down.

Learning from the lessons of the Great East Japan Earthquake, Sendai City is also focusing on the development of a disaster-resistant water supply network. In particular, the city has been promoting the replacement of water pipes with more earthquake-resistant ones, and has established water supply centers throughout the city that can respond to emergencies. These efforts are becoming an advanced model for other municipalities in Japan.

Hamamatsu City's Decision: Entrusting the Future of Sewerage to the People

In 2018, Hamamatsu City became the first municipality in Japan to introduce a concession system for its sewerage business. This system, in which the city owns the facilities but outsources operation and maintenance to a private company over a 20-year period, drew nationwide attention.

This initiative aims to reduce the city's financial burden by utilizing private-sector funds, while at the same time improving operational efficiency and service quality through the expertise of private companies. It is also expected to establish a flexible system for disaster response. Hamamatsu City's attempt is highly regarded as a new management model for water supply and sewerage services in an era of declining population.

Reference Information

- Ministry of Health, Labour and Welfare, "Current Status and Issues of Waterworks Business" (Japanese only)
- Sendai City Waterworks Bureau, "Sendai City Waterworks Vision
- Hamamatsu City Sewerage Department, "Sewerage Business Operation by Concession Method
- Ministry of Internal Affairs and Communications, "Guidelines for Wide-Area Development and Cooperation of Local Public Enterprises" (Japanese only)