Promoting a Wastewater Management Revolution in Asia-Pacific Dr. Anand Chiplunkar Principal Water Supply and Sanitation Specialist Asian Development Bank

Sanitation Coverage: Mixed Results Source: World Bank. Global Data Monitoring Information System

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% South Asia’s wastewater is discharged untreated – polluting groundwater, rivers and coasts Source:UNEP/GPA

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 India Indonesia73251 Philippines34754 Pakistan Bangladesh27754 Iran Viet Nam14 57 Thailand12050 Malaysia Myanmar91055 Rep of Korea96583

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 Evaluation of Costs and Benefits of Water and Sanitation Improvements at the Global Level.)

compilation of successful and sustainable environmental sanitation case studies Knowledge drive : compilation of successful and sustainable environmental sanitation case studies specific technology datasheets and its applications for different treated output standards required for various end-uses Technology drive : specific technology datasheets and its applications for different treated output standards required for various end-uses business briefs and pre-feasibility studies with financing mechanisms to fast-track wastewater investment projects, and encourage extraction of resources from wastewater 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: Indonesia public markets: Philippines peri-urban areas: Viet Nam Constructed wetlands 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 Fiji Biogas:Cambodia Fertilizer:Philippines PROMOTE REUSE OF TREATED WASTE

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

Project Development Fund (PDF) Can be recovered with returns in successful projectsCan be recovered with returns in successful projects Viability Gap Fund (VGF) Enhancing viability to make it financially attractiveEnhancing viability to make it financially attractive Usually upfront grantUsually upfront grant Operational/Transition Support Fund Support cash flow based on business plan and reformsSupport cash flow based on business plan and reforms Grants or Debt to project in O&MGrants or Debt to project in O&M Other measures Credit EnhancementCredit Enhancement Risk Guarantee MechanismsRisk Guarantee Mechanisms In ADB: Loan – single or multi- tranche 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) In ADB: Loan – single or multi- tranche 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 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 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 Fund Output 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 Drive 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 INCREASE AWARENESS AND INVOLVE THE STAKEHOLDERS

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 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) 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, Cebu Viet Nam: Sanitation Options for Peri-Urban Areas Cambodia: 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 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 Lessons and Opportunities

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