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

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India

Sri La

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Pakist

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Afghan

istan

Maldive

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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:

achiplunkar@adb.orgWeb site: www.adb.org/water