Budapest Water Summit 2016 Civil Forum, Budapest, 29-30 November 2016 Sustainable management and affordable development (DCC/LCC) as an artery of a living city Károly Kovács President of European Water Association (EWA) Hungarian Water Cluster (HWC)

Water issues in Sustainable Development Goals (SDGs) Water related issues arise in connection with all the other SDGs! Connects SDGs, provides synergy

Urban infrastructure investment needs during the next 25 years $41 trillion in total Global infrastructure development and reconstruction needs based on global urbanization trends Trillion: 1,000,000,000,000 (one million million; 1012) Source: UNEP City Level Decoupling 2013

Urban water infrastructure challenges and opportunities Water scarcity vs. infrastructure scarcity Climate change Urbanisation Financing initial investments Financing operation and reproduction Affordability (3T) Opportunities knowledge sharing and cooperations less already existing, ageing infrastructure more opportunity to benefit from new concepts like Circular economy Resilient infrastructures „right water to the right user” of water health, safety economic development new jobs significant savings on social level (tap water vs. bottled water) 3T: Tariffs, Taxes, Transfers

About EWA Established in 1981 under the name European Water Pollution Control Association (EWPCA) during IFAT in Munich Reaching 50,000 individual water professionals Regular conferences and high level professional events Sustainable management of the total water cycle Promote the advancement and adoption of integrated water management Exchange of knowledge and expertise  providing a forum for the discussion of key technical, economical, scientific and policy issues

Tackle water challenges Wise investments >> cost efficiency Proper option analysis: Dynamic Cost Comparison (DCC) Public procurement: Life-cycle Costing (LCC) as award criteria Affordability The three ultimate ways to finance water services : the 3T’s Tariffs: price of water services, including environmental taxes on the water bill. Taxes: national, regional or municipal general taxes. Transfers: money coming from another sector/country

Drinking water sachets The official water tariff What is „affordable”? How much do people pay for water when they don’t have a utility service? Drinking water sachets Cape Verde Port Moresby $11.46/m3 $48.21/m3 The official water tariff $5.78/m3 $0.45/m3

WssTP Vision Paper: The Value of water Civil sector as accelerators WssTP Vision Paper: The Value of water „The right water for the right purpose to the right users”

The original objective of the project: The DCC project: A good European practice of a knowledge transfer International methodological project With the participation of 5+1 CEE countries (HU, BG, RO, SK, CR+DE) The original objective of the project: Improvement of the planning process with a new methodological approach of option analysis

Dynamic Cost Comparison (DCC) For calculation of Life Cycle Cost (LCC) and selection of the most cost-efficient, optimum solution! Main principle of (DCC) For the correct evaluation of cost-efficiency, all costs of the whole life cycle should be taken into account, and cost should be compared on their present value. Life-cycle approach Dynamic approach Real term thinking Considers all costs Well-established, professional, transparent Mutual language of engineers and economist

Apply Life-cycle Costing (LCC) at the right stages of management cycle Proper option analysis: Dynamic Cost Comparison (DCC) for cost-efficiency Public procurement: Life-cycle Costing (LCC) as award criteria Two important phases of planning process, apply is in the right stages

What does a smart city have to do? Smart decision-making Apply state-of-the-art decision-making methodologies Select the optimum technical solution with the lowest life cycle cost Cooperations, sharing of knowledge and experiece Involve stakeholders Professional water management Drinking water purification Wastewater treatment Stormwater magagement Asset management

Thank you for your attention! „The best way to predict the future, is to design it.” Buckminster Fuller Thank you for your attention! Károly Kovács European Water Association kovacs.karoly@bdl.hu www.ewa-online.eu