Promoting Wastewater Management Revolution in Asia-Pacific

Anand Chiplunkar Principal Water Supply and Sanitation Specialist
ADB 2nd ADB-DMC and Partners Sanitation Dialogue ADB, Manila 23-24 May 2011

Wastewater Management Revolution in Asia-Pacific

BACKGROUND

Sanitation Coverage: Mixed Results
More work needs to be done in Bangladesh, Cambodia, India, Indonesia, Lao PDR, Fiji, Kiribati, Papua New Guinea and Timor Leste.

Source: World Bank. Global Data Monitoring Information System

Sanitation Coverage: Mixed Results
Pollution of surface water is a major challenge in East Asia, especially People Republic of China Rehabilitation of sewerage and wastewater treatment facilities are needed in Central & West Asia.

Sanitation Coverage: Not Enough
While the progress in meeting quantitative targets is significant and laudable, there are continuing concerns over the quality of the services. It is estimated that 85-89% of 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) China India Indonesia Philippines Pakistan Bangladesh Iran Viet Nam Thailand Malaysia Myanmar Rep of Korea 251 184 73 34 32 27 25 14 12 10 9 9 % 2004 % urban household sewerage connection 50 25 2 7 40 7 19 14 0 41 10 65 % 2015 % urban household sewerage connection after achieving target 75 63 51 54 70 54 60 57 50 71 55 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.)

ASIA-PACIFIC WASTEWATER MANAGEMENT REVOLUTION PROGRESS AND INITIATIVES

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

Knowledge Drive

• Compile sustainable models/case studies • Choices in the sanitation ladder

Technology Drive
• Many choices for different end uses
Toilets Sulabh pour-flush toilets with twin pits; attached to biogas digesters in unsewered areas (India) Eco-san toilets – produce safe fertilizer: Philippines; PRC for urban poor communities: Indonesia public markets: Philippines peri-urban areas: Viet Nam Ningbo and Nanjing (China) Bayawan City (Philippines) Da Nang (Viet Nam) Sihanoukville (Cambodia)
Constructed Wetlands: China Conventional: Sihanoukville

Decentralized wastewater treatment technologies (DEWATS) Constructed wetlands Conventional

DEWATS: Viet Nam

Technology Drive
PROMOTE REUSE OF TREATED WASTE Can address water scarcity and food security: Source of water for irrigation: VietNam,
China

Source of water for industrial use: India Biosolids/Organic fertilizers: Philippines Feeds for aquaculture: Bangladesh, India
Fertilizer: Philippines

Source of energy Biogas for electricity, lighting and cooking:
India, China, Cambodia, Indonesia, Nepal

Potential for carbon credits CDM: Kinoya Wastewater
Biogas: Cambodia

Treatment Project in Fiji

Wuhan Urban Environmental Improvement Project, PRC
Wastewater management
Wetland parks as part of treatment Membrane Bioreactor for advanced wastewater treatment Sludge treatment and disposal

Lake/channels rehabilitation Real time water quality model

Financing Drive
Develop Business briefs and Pre-feasibility studies Models of Affordable and innovative financing
Gram Vikas (India): Socialized community fund raising for toilets and bathing facilities Kerala (India) and Viet Nam: Revolving funds for toilets and biogas plants Philippines: Environmental User Fee; microfinancing

Public – Private Partnerships
Philippines and India: private concessionaires responsible for investments, operation and management

Other mechanisms
Nepal: Output-based aid Shanghai (PRC) and Fiji: Clean development mechanism

Financing Drive
Project 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 multitranche facility Grant Non-sovereign public sector facility Local currency loan Debt management products Private Sector – equity investments, loans, guarantees, and B loan (complementary financing scheme)

Kyrgyz Republic: Issyk-Kul Sustainable Development Project
3.0

ADB Loan & Repayment Grant Grant Ministry of Finance Viability Gap Fund
VGF

2.5

2.0

$ million

1.5

City Government

1.0

Output Based Subsidies

0.5

0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year WSS Revenue WSS Expenditure

Performance-based service contracts with targets, incentives, and penalties Service Utility Supply Service Customers

CAPEX

Gov’t to link viability gap funding and output-based aid to achievements Financial Improvement Action Plan by city and utility City concludes performance-based service contracts with service utility

Pay Tariff

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
POTENTIAL REVENUES
India: Reuse of treated wastewater for industrial use, in Surat, Gujarat State through PPP is augmenting water supply, set to earn US$6 million per year Xiamen, PR China: The Shiweitou Sewage Treatment Plant supplies 24,000 cu.m/day of treated wastewater for watering plants in more than 500 ha., earning RMB 2 million per year Bali, Indonesia: Reuse of treated wastewater from the “Eco-Lagoon,” which is also a tourist attraction Bangladesh: duckweed-based wastewater treatment pond - net profit of almost US$ 2000/ha/y from operation and using duckweed as feeds in aquaculture farms.
Treated wastewater: China

Eco-lagoon, Nusa Dua

Awareness and Advocacy Drive
INCREASE AWARENESS AND INVOLVE THE STAKEHOLDERS Hygiene 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 sanitation
India

Stimulate demand and willingness to pay

Awareness and Advocacy Drive
Partnership with the private sector
Need bankable projects and cost recovery mechanism

Business briefs and pre-feasibility studies with willing partners Conduct 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 sanitation
Central government support to local governments

Support small-scale providers and entrepreneurs Increase 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)

ADB: Pilot and Demonstration Activity
Advisory technical assistance Testing of innovative technologies and methodologies for effectiveness and possible replication Targeted water sector organization capacity improvement Catalyse reforms Knowledge products
Examples: Philippines: Low-Cost Decentralized Wastewater Treatment in Liloan, Cebu Viet Nam: Sanitation Options for Peri-Urban Areas Cambodia: Microfinancing system for sanitation in rural areas

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

Lessons and Opportunities
Financing is not a constraint. Learning and capacity building
Knowledge sharing on good practices, technology and financing options Demonstrate innovative projects Replicate and scale up successful projects

Co-benefits of sanitation and sustainable agriculture as we address food security and water scarcity Climate change adds another dimension to the sanitation challenge but provides opportunities:
Less energy intensive wastewater treatment systems Methane capture and waste-to-energy projects

THANK YOU.
For More Information: achiplunkar@adb.org Web site: www.adb.org/water

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