Promoting a Wastewater Management Revolution
in Asia-Pacific
Dr. Anand ChiplunkarPrincipal Water Supply and Sanitation Specialist
Asian Development Bank
Sanitation Coverage: Mixed Results
Source: World Bank. Global Data Monitoring Information System
Bangla
desh
India
Sri La
nka
Pakist
anNep
al
Bhuta
n
Afghan
istan
Maldive
s0
20
40
60
80
100
120
South Asia
19901995200020052009TARGET BY 2015
Impr
oved
San
itatio
n C
over
age
(%)
Sanitation Coverage: Not EnoughWhile the progress in meeting quantitative targets is significant and laudable, there are continuing concerns over the quality of the services.
It is estimated that 85% South Asia’s wastewater is discharged untreated – polluting groundwater, rivers and coasts
Source: UNEP/GPA. 2004.
Sewerage coverage
Additional target: “To halve by 2015 the proportion of the urban population without household connections to a sewerage system”
Millions % %Numbers of people needing
connection to achieve target (millions)
2004 % urban household
sewerage connection
2015 % urban household
sewerage connection after achieving target
China 251 50 75India 184 25 63Indonesia 73 2 51Philippines 34 7 54Pakistan 32 40 70Bangladesh 27 7 54Iran 25 19 60Viet Nam 14 14 57Thailand 12 0 50Malaysia 10 41 71Myanmar 9 10 55Rep of Korea 9 65 83
Facts and Figures
Economic impacts of lack of sanitation cost them from 1% to 7% of their GDP each year (Cambodia, Indonesia, Lao PDR, Philippines, Viet Nam) — Cambodia: 7.2.% of GDP — Indonesia: $ 6.3. billion p.a. or 2.4% of GDP
— India: $53.8 billion p.a. or 6.4% of GDP(Water and Sanitation Program. Economics of Sanitation Initiative.)
WHO study revealed─ $1 invested in water and sanitation would provide an
economic return between $3 and $ 34 (WHO. 2004. Evaluation of Costs and Benefits of Water and Sanitation Improvements at the Global Level.)
Wastewater management revolution
Knowledge drive: compilation of successful and sustainable environmental sanitation case studies
Technology drive: specific technology datasheets and its applications for different treated output standards required for various end-uses
Financing and incentives drive: business briefs and pre-feasibility studies with financing mechanisms to fast-track wastewater investment projects, and encourage extraction of resources from wastewater
Awareness and advocacy drive: knowledge products, capacity development workshops , networking with stakeholders in round tables for taking up identified business opportunities
PROGRESS AND INITIATIVES
Wastewater Management Revolution in Asia
Knowledge Drive
• Compile sustainable models/case studies• Choices in the sanitation ladder
Technology Drive
DEWATS: Viet Nam
Constructed Wetlands: China
• Many choices for different end uses
Conventional: Sihanoukville
Toilets Sulabh pour-flush toilets with twin pits; attached to biogas digesters in unsewered areas (India)Eco-san toilets – produce safe fertilizer: Philippines; PRC
Decentralized wastewater treatment technologies (DEWATS)
for urban poor communities: Indonesiapublic markets: Philippinesperi-urban areas: Viet Nam
Constructed wetlands
Ningbo and Nanjing (China) Bayawan City (Philippines)
Conventional
Da Nang (Viet Nam) Sihanoukville (Cambodia)
Technology DriveCan address water scarcity and food security:
Source of water for irrigation: VietNam, ChinaSource of water for industrial use: IndiaBiosolids/Organic fertilizers: PhilippinesFeeds for aquaculture: Bangladesh, India
Source of energyBiogas for electricity, lighting and cooking: India, China, Cambodia, Indonesia, Nepal
Potential for carbon creditsCDM: Kinoya Wastewater Treatment Project in Fiji Biogas:
Cambodia
Fertilizer:Philippines
PROMOTE REUSE OF TREATED
WASTE
Wuhan Urban Environmental Improvement Project, PRC
Wastewater management
Wetland parks as part of treatmentMembrane Bioreactor for advanced wastewater treatmentSludge treatment and disposal
Lake/channels rehabilitationReal time water quality model
Financing DriveDevelop Business briefs and Pre-feasibility studiesModels of Affordable and innovative financing
Gram Vikas (India): Socialized community fund raising for toilets and bathing facilitiesKerala (India) and Viet Nam: Revolving funds for toilets and biogas plantsPhilippines: Environmental User Fee; microfinancing
Public – Private PartnershipsPhilippines and India: private concessionaires responsible for investments, operation and management
Other mechanismsNepal: Output-based aidShanghai (PRC) and Fiji: Clean development mechanism
Financing DriveProject Development Fund (PDF)• Can be recovered with returns in
successful projects
Viability Gap Fund (VGF)• Enhancing viability to make it
financially attractive• Usually upfront grant
Operational/Transition Support Fund• Support cash flow based on
business plan and reforms• Grants or Debt to project in O&M
Other measures• Credit Enhancement• Risk Guarantee Mechanisms
In ADB:Loan – single or multi-tranche facilityGrantNon-sovereign public sector facilityLocal currency loan Debt management productsPrivate Sector – equity investments, loans, guarantees, and B loan (complementary financing scheme)
Kyrgyz Republic:Issyk-Kul Sustainable Development Project
Gov’t to link viability gap funding and output-based aid to achievementsFinancial Improvement Action Plan by city and utilityCity concludes performance-based service contracts with service utility
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Year
$ m
illio
n
WSS Revenue WSS Expenditure
VGF
City Government
Service Utility
Customers
Ministry of Finance
ADB
Grant
Loan & Grant Repayment
Supply Service Pay
Tariff
Performance-based service contracts with
targets, incentives, and penalties
Viability Gap FundOutput Based
Subsidies
CAPEX
Financially Viable Sewerage Systems
Examples:Philippines: Manila Water Company, Inc.India: Municipality of Alandur sewerage project
Factors to ensure financial viability and social acceptability:
conduct public consultations
determine level of service needed
select a suitable technology
access affordable financing mechanism
set appropriate wastewater tariffs to cover: costs, return on investment, future expansion requirements
Show shared benefits from reuse
Incentives Drive
Bali, Indonesia: Reuse of treated wastewater from the “Eco-Lagoon,” which is also a tourist attraction
India: Reuse of treated wastewater for industrial use, in Surat, Gujarat State through PPP is augmenting water supply, set to earn US$6 million per year
Xiamen, PR China: The Shiweitou Sewage Treatment Plant supplies 24,000 cu.m/day of treated wastewater for watering plants in more than 500 ha., earning RMB 2 million per year
Bangladesh: duckweed-based wastewater treatment pond - net profit of almost US$ 2000/ha/y from operation and using duckweed as feeds in aquaculture farms.
Treated wastewater:China
Eco-lagoon, Nusa Dua
POTENTIAL REVENUES
Awareness and Advocacy DriveHygiene and environmental education in schools
India: Total Sanitation Campaign
Philippines: Fit-for-School Program
Triggering demand: community-led total sanitation
Bangladesh, Cambodia
Stakeholder participation:SANIMAS in Indonesia
Social marketing of sanitationIndia
Stimulate demand and willingness to pay
INCREASE AWARENESS AND
INVOLVE THE STAKEHOLDERS
Partnership with the private sectorNeed bankable projects and cost recovery mechanism
Business briefs and pre-feasibility studies with willing partnersConduct Round Tables
Govt/municipal administration, private sector, consumers, financiers etc.
Address affordability issues: lower interest rates, longer repayment period
This is a key component of the Asia Sanitation Revolution • Go beyond
advocacy• Develop
sustainable business opportunities
• Have stakeholder buy-in
Awareness and Advocacy Drive
Allocate budget for sanitationCentral government support to local governments
Support small-scale providers and entrepreneursIncrease public awareness and involve stakeholders
to stimulate demand and willingness to pay
It is estimated that the annual costs of meeting the 2015 sanitation target are about $7 billion for sanitation facilities, and $53 billion for wastewater treatment.(UNICEF 2004)
Awareness and Advocacy Drive
ADB: Pilot and Demonstration Activity
Examples:Philippines: Low-Cost Decentralized Wastewater Treatment in Liloan, CebuViet Nam: Sanitation Options for Peri-Urban AreasCambodia: Microfinancing system for sanitation in rural areas
Advisory technical assistance
Testing of innovative technologies and methodologies for effectiveness and possible replication
Targeted water sector organization capacity improvement
Catalyse reforms
Knowledge products
ADB: Expanding the Knowledge Base- Toolkit: Smarter Sanitation (CD)- Wastewater Management Expert System
- Making Sanitation Everybody’s Business- Coming Clean on Sanitation (video stories)
- India’s Sanitation for All: How to Make it Happen
- Asian Sanitation Data Book
Financing is not a constraint.Learning and capacity building
Knowledge sharing on good practices, technology and financing optionsDemonstrate innovative projectsReplicate and scale up successful projects
Co-benefits of sanitation and sustainable agriculture as we address food security and water scarcityClimate change adds another dimension to the sanitation challenge but provides opportunities:
Less energy intensive wastewater treatment systems
Methane capture and waste-to-energy projects
Lessons and Opportunities
THANK YOU.For More Information:
[email protected] site: www.adb.org/water