LONDON - The World Bank and other top development lenders launched a new global initiative dubbed Water Forward on Wednesday, aimed at improving secure water access for a billion people within the next four years.

The programme seeks to boost investment in water management while encouraging governments to treat water as a strategic economic resource rather than a low-cost public utility. It will focus on mobilising private capital and philanthropic money alongside public funding, the World Bank said.

"Water is foundational to how economies function," the head of the World Bank, Ajay Banga, said in a statement, adding that the task was now to "deliver reliable water services at scale."

Global demand for freshwater is expected to outstrip supply by up to 40% by the end of the decade, the World Bank estimates, with water-related shocks already costing some countries several percentage points of annual economic growth.

Climate change is intensifying both droughts and floods, placing pressure on public finances and vulnerable communities, particularly in fast-growing cities. A report last year estimated that over 2.1 billion people lack safe drinking water, and more than 3.4 billion live without adequate sanitation.

Water Forward will initially focus on 14 countries in water-stressed regions in Africa, the Middle East and South Asia and prioritise projects that reduce leakage in urban areas, modernise irrigation, improve wastewater reuse and expand data-driven planning.

Other development banks involved include the European Investment Bank, Asian Development Bank, the Inter-American Development Bank and the New Development Bank. The latter institution was established by BRICS nations Brazil, Russia, India, China and South Africa.

The World Bank said it estimated that 4 billion people experience water scarcity due to a mix of unclear government policies, weak regulations and financially unsustainable utilities.

Its commitment was to deliver water security to 400 million people by 2030, it added, while "additional partner commitments" would take the Water Forward programme's total reach to more than 1 billion people.

-Marc Jones in London; Editing by Matthew Lewis/Reuters