S8 Asia-Pacific Wastewater Management Revolution Approach by Anand Chiplunkar (Long)

8/6/2019 S8 Asia-Pacific Wastewater Management Revolution Approach by Anand Chiplunkar (Long)

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Promoting Wastewater

Management Revolutionin Asia-Pacific

Anand ChiplunkarPrincipal Water Supply and Sanitation Specialist

ADB

2nd ADB-DMC and Partners Sanitation Dialogue

ADB, Manila

23-24 May 2011



BACKGROUND

Wastewater Management Revolution in Asia-Pacific



Sanitation Coverage: Mixed Results

More work needs to bedone in Bangladesh,Cambodia, India,Indonesia, Lao PDR,Fiji, Kiribati, Papua New

Guinea and TimorLeste.

Source: World Bank. Global Data MonitoringInformation 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 areneeded in Central & West Asia.



Sanitation Coverage: Not Enough

While the progress in

meeting quantitativetargets is significant

and laudable, there are

continuing concerns

over the quality of theservices.

It is estimated that

85-89% of Asia’s

wastewater isdischarged

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 toa sewerage system”

Millions % %Numbers of people needing

connection to achievetarget (millions)

2004% urban household

sewerage connection

2015% urban household

sewerage connectionafter achieving target

China 251 50 75India 184 25 63Indonesia 73 2 51Philippines 34 7 54

Pakistan 32 40 70Bangladesh 27 7 54Iran 25 19 60Viet Nam 14 14 57Thailand 12 0 50Malaysia 10 41 71Myanmar 9 10 55

Rep 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.)



ASIA-PACIFICWASTEWATERMANAGEMENT

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

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; PRCDecentralizedwastewatertreatmenttechnologies

(DEWATS)

for urban poor communities: Indonesia

public markets: Philippines

peri-urban areas: Viet Nam

Constructedwetlands

Ningbo and Nanjing (China)

Bayawan City (Philippines)

Conventional Da Nang (Viet Nam)

Sihanoukville (Cambodia)



Technology Drive

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

Source of energy

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

Potential for carbon credits

CDM: Kinoya Wastewater

Treatment Project in FijiBiogas:Cambodia

Fertilizer:Philippines

PROMOTE REUSE

OF TREATEDWASTE

W h U b E i l



Wuhan Urban EnvironmentalImprovement Project, PRC

Wastewatermanagement

Wetland parks as partof treatment

Membrane Bioreactor

for advancedwastewater treatment

Sludge treatment anddisposal

Lake/channelsrehabilitation

Real time waterquality 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 insuccessful 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 facility

Grant

Non-sovereign public

sector facilityLocal currency loan

Debt managementproducts

Private Sector – equityinvestments, loans,guarantees, and B loan(complementaryfinancing scheme)

K g R bli



Kyrgyz Republic:Issyk-Kul Sustainable Development Project

Gov’t to link viability gap funding and

output-based aid to achievements

Financial Improvement Action Plan by cityand utility

City 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 i l l i o n

WSS Revenue WSS Expenditure

VGF

City

Government

Service Utility

Customers

Ministry of Finance

ADB

Grant

Loan &Grant

Repayment

SupplyService Pay

Tariff

Performance-basedservice contracts

with targets,incentives, and

penalties

Viability Gap FundOutputBased

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 serviceneeded

select a suitable technology

access affordable financingmechanism

set appropriate wastewatertariffs to cover: costs, return oninvestment, future expansionrequirements

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 Drive

Hygiene and environmental

education in schoolsIndia: Total Sanitation Campaign

Philippines: Fit-for-School Program

Triggering demand: community-led

total sanitationBangladesh, Cambodia

Stakeholder participation:

SANIMAS in IndonesiaSocial marketing of sanitation

India

Stimulate demand and

willingness to pay

INCREASEAWARENESS AND

INVOLVE THE

STAKEHOLDERS



Partnership with the private sector

Need bankable projects and costrecovery 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 theAsia SanitationRevolution

• Go beyond

advocacy• Develop

sustainablebusiness

opportunities• Have stakeholder

buy-in




Allocate budget for sanitation

Central government support to localgovernments

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 meetingthe 2015 sanitationtarget are about $7billion for sanitation

facilities, and $53 billionfor wastewatertreatment.(UNICEF 2004)




ADB: Pilot and Demonstration Activity

Examples:Philippines: Low-Cost

Decentralized Wastewater

Treatment in Liloan, Cebu

Viet Nam: SanitationOptions for Peri-Urban

Areas

Cambodia: Microfinancing

system for sanitation inrural areas

Advisory technical

assistance

Testing of innovativetechnologies andmethodologies for

effectiveness andpossible replication

Targeted water sectororganization capacityimprovement

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 options

Demonstrate innovative projects

Replicate 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]

Web site: www.adb.org/water

S8 Asia-Pacific Wastewater Management Revolution Approach by Anand Chiplunkar (Long)

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