Bank aus Verantwortung Nexus Water – Energy – Climate: Experiences of KfW-financed projects in the MENA-region Dr. Stefan Gramel / Technical Advisor - KfW Arab Water Week, January 2013

2 Presentation structure KfW: Water Sector Wastewater: Climate Protection and Energy Efficiency Energy Efficiency in Water Supply

3 KfW: Water Sector Overview (values of 2011) › Current portfolio EUR 4.8 billion (FC) › Further EUR 3 billion are mobilised in local funds › Annual commitments in 2011 in the order of EUR 700 million › MENA is one of the most important regions for the KfW portfolio › Trends: › New types of projects besides traditional water supply, wastewater (as energy efficiency, climate mitigation/adaptation, re-use…) › Financing instruments: Larger amount, smaller part of the money from the German Ministry (example: development loans)

4 Wastewater: Climate Protection and Energy Efficiency Jordan: Analysis of the situation › Expert analysis regarding possible measures: › Energy efficiency at WWTP: limited potential, easier to tackle in the context of normal rehabilitiation › Sewage sludge: multiple effects (1) use of biogas (2) reduction of emission/energy through transport (3) emission of CO2 instead of CH4

5 Wastewater: Climate Protection and Energy Efficiency Jordan: Current status of sewage sludge treatment, disposal › Mostly no dewatering, no digestion, problems with drying beds in particular in winter months › Sludge dried solid frequently < 5% › Cost for transport/disposal appr. 2 million JD/a › High danger of groundwater contamination through liquid sludge on disposal sites › Main part of processes are anaerobic to CH4: appr tons CO 2 -eq through sewage sludge (appr. CO 2 -emissions of electricity production for inhabitants)

6 Wastewater: Climate Protection and Energy Efficiency Jordan: new Jordanian-German project financed through KfW › Definition of new Jordanian-German project re. sewage sludge in 2012 (financed through KfW) WWTP besides Al Samra: Mechanical dewatering Digestion Enhancement of drying beds Potentially other measures (solar drying, reed beds…) Al Samra: Support for a solution in relation to the disposal of the sewage sludge (e.g. through co-incineration, mono- landfill)

7 Wastewater: Climate Protection and Energy Efficiency Jordan: new Jordanian-German project financed through KfW Type of measure Invest, O/M [€-Cent/m³ drinking water] Drying beds: Rehabilitiation2.2 Mechanical dewatering0.7 Mechanical dewatering and Solar drying 7.3 Digestion5.6 Landfill (Al Samra)1.3 Co-incineration (Al Samra)0.3

8 Wastewater: Climate Protection and Energy Efficiency Jordan: new Jordanian-German project financed through KfW Type of measure Cost for reduction of Greenhouse-Gases (GHG) [€/t CO2-eq] Drying beds: Rehabilitation 961 Mechanical dewatering 19 Mechanical dewatering and Solar drying 190 Digestion 22

9 Wastewater: Climate Protection and Energy Efficiency Jordan: new Jordanian-German project financed through KfW › Financial amount: from German side € 20 million plus Jordanian share › What is done? › Financing agreement on inter-governmental level › Acceptance of KfW-Appraisal report to BMZ (German Ministry for Development) › MoM re. main elements between WAJ -KfW

10 Wastewater: Climate Protection and Energy Efficiency Jordan: new Jordanian-German project financed through KfW › What is coming? › PQ / Tendering for consulting services › Detailed investment concept › Detailed design, tendering, implementation

11 Wastewater: Climate Protection and Energy Efficiency Tunisia: Sewage sludge programme › Situation: no general, nationwide solution for sewage sludge currently (often: storing of sludge at WWTP site) › Amount for investment: € 27 million plus Tunisian share › Envisaged measures: › Sludge treatment (dewatering, digestion…) › Sludge disposal/recovery (landfill, agriculture, co-incineration…) › Detailed concept studies currently ongoing (nationwide)

12 Wastewater: Climate Protection and Energy Efficiency Tunisia: Programme for energy efficiency at WWTP › Situation: › Appr. 100 WWTP under operation (the largest 16 are focused here) › Mostly sludge aerobic stabilization (energy intensive) › Preparation of feasibility study just starts › Based on FS: Preparation of KfW appraisal report to German Ministry for Development (BMZ), end of 2013

13 Water Supply: Climate Protection and Energy Efficiency Jordan: Situation › Water sector is the largest consumer of electrical energy in Jordan (> 10 % of total energy consumption) › High potential for energy reduction (estimation before project appraisal 20%) › High potential in particular in the field of pumping stations, submersible pumps in wellfields

14 Water Supply: Climate Protection and Energy Efficiency Jordan: Concept of the project on energy efficiency › Financial amount of the ongoing project: € 26 million plus Jordanian share › Project measures: › Improvement of energy efficiency at pumping stations › Improvement of energy efficiency in wells › Enhancement of hydraulically critical situations in pipelines, networks

15 Water Supply: Climate Protection and Energy Efficiency Jordan: ongoing Project on energy efficiency – Status of project implementation › Pre-screening finalised: pumping stations, wellfields where to realise detailed investigations (in particular energy measurement) are defined › Energy measurements just started › PQ/Tendering for detailed design, tendering, supervision will start soon

16 Water Supply: Climate Protection and Energy Efficiency Jordan: ongoing Project on Energy Efficiency – First results › Best 10 wellfields: Payback period in average 1.7 a › Best 15 pumping stations: Payback period in average 2.0 a › BUT: high level of uncertainty in this phase (before the detailed measurements)

Synopsis 17 Waste Water Need re. sludge treatment in the MENA-region High level of GHG-reduction Water Supply Potential for the reduction of energy consumption depending on the water supply structure (large potential in Jordan) Results in Jordan indicate high cost efficiency