 The EPA's own gap analysis, the 2003 Needs Assessment, is in substantial agreement with the WIN and the Congressional Budget Office estimates (EPA, 2005). All indicate that there is a need for substantial investments to upgrade or replace the water infrastructure (Levin et al., 2002) in order to ensure compliance with quality standards prescribed by the Safe Drinking Water Act. The EPA estimated that drinking water utilities will spend USD 154 - 446 billion up to 2019 and wastewater systems USD 331-450 billion over the same period in order to meet the required standards. In addition a further USD 17.5 billion is required to replace lead service pipes and USD 1.2 billion to harden facilities in order to improve security. In addition, there are the operation and maintenance costs that have been estimated at USD 29 billion for drinking water and USD 24 billion for wastewater annually (CBO, 2001). The estimates approximate to a spending of 0.75% of GDP. Affordability ratios for water and sewage services are approximately 0.5%. Table 5.10. Estimates of average annual costs for investment in water systems to 2019 2001 dollars Water supply Wastewater Annual amount Source Total (USD million) (USD million) (USD million) Congressional Budget Office 12 000-20 5 14 900-22 300 26 900-42 700 538 000-854 000 Water Infrastructure Network 20 900 19 200 40 100 802 000 EPA Needs Survey 7 700-22 300 16 550-22 500 24 250-44 800 503 700-1 014 700 Source: Authors. Since 1997 a loan programme of USD 1 billion has been authorised annually under the Drinking Water State Revolving Fund for wastewater projects. Concerns about the ability to raise the necessary finances are now leading US municipalities to consider privatisation. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 - © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE United Kingdom In England and Wales (privatised) the amounts spent and projected expenditures on provision of water servic