capital, operational and maintenance requirements, the annual figure would be USD 71.34 billion or USD 356.7 billion over a five-year period. If the amounts given above to be spent on urban water supply and wastewater treatment were spent over the next 10 years on new works, this would amount to approximately 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 USD 130 billion, implying an amount of USD 220 billion for the maintenance and operation of existing systems. Given that the 2004 total state expenditure was USD 3 425 billion per annum, an expenditure of USD 71.34 billion would represent approximately 2% of the state expenditure, which would seem reasonable. In order to facilitate this process, reforms of the financing and investment structure of the water industry are under way to encourage a range of investment and participation mechanisms for both local and foreign enterprises. A large proportion of the funds to develop China's water infrastructure are expected to be raised from overseas investment, loans and market financing, despite current low private participation. A key factor in attracting investment will be the reform of property rights and transforming government's role into that of a regulator responsible for quality, price, service, rights and competition rather than a services supplier. There appear to be no readily available figures for the ongoing operation and maintenance funding requirements for the country, although it is reasonable to assume that the budget allocations do include the operational expenditures. Brazil According to Almeida and Mulder (2005), public investment in water/ sanitation has fallen over time, from 0.3-0.4% of GDP in the 1970s and 80s to 0.2% during 1999-2002, and 0.1% in 2003. This drop was mainly due to ongoing fiscal consolidation, which affected investment spending more adversely than current expenditure, being relatively