1. Institutional and Legal Plan for Wastewater Reuse in Palestine 1 Technical Assistance on Reuse of Wastewater and Storm Water Harvesting in the Gaza Strip

2. Present Water Situation in Palestine Water resources in the region are extremely scarce and disputable. Water demand is continuously growing. Water supply and sanitation services are inefficiently delivered and inadequate. Tariffs are generally inadequate. Consumption and water losses are excessive. Insufficient water harvest activities. Specifically, In Gaza Strip: The total abstraction of groundwater in Gaza Governorates exceeds 180 MCM/year. The agriculture consumes around 85MCM of pumped through more than 10,000 wells located overall Gaza Strip. The reminder (95 MCM) is used for industrial and domestic water supplies. The aquifer is being over-exploited. The gap between water demand and water supply increases with time. A deficit of about 80 MCM/year. Reconciliation relies in the strategy of ensuring additional water supply and wastewater reuse schemes. The reuse of treated wastewater effluents represents a national interest and it is considered an important component of the overall maximization of water resources. 2

3. Final DistentionTreatment Availability Sewage Production M3/day Connect. to Sewage network % Population Capita Govern. 100% Infiltration basins East & North of Gaza Strip Available Partially Treatment 23,00080%300,000 Northern 100% to sea 50,000 partially 10,000 Raw Available 80% Partially Treatment & 20% Raw 76,00090%650,000 Gaza 100 % Wadi Gaza and to the Sea 10,000 Raw Not Available10,00055%250,000 Middle 100 % to sea (30,000 cesspit) 9,000 Partially Available Partially Treatment 12,00040%290,000 Khan Younis 100% to Sea 10,000 Partially Available Partially Treatment 10,00065%200,000 Rafah 40 Mcm/Yr To Sea 48 MCm/yr1,725,000Total

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5. Wastewater Reuse Pilot Projects in Gaza Strip

7. 7 Major Wastewater Reuse System Failures low levels of wastewater reuse Diffuse responsibilities of involved authorities, operators and end users Lack of sufficient WWT and reuse infrastructure facilities Unreliable flows and quality of treated wastewater Inefficient WW reuse practices by farmers health risks related to current reuse practices environmental risks related to current reuse practices Insufficient standards, monitoring and enforcement Inefficient tariff system, lack of financial means and incentives Low organization rate among end users Limited access to (external) agricultural markets Required capacity building and training

8. Gab in mandate for effluent reuse in the followings: Construction, operation and maintenance of the effluent conveyance system between the WWTP and the off-take points at the farm level; Management of contractual relations with farmers for the supply of effluent; Effluent tariff collection, including recovery of operation and maintenance costs of the effluent conveyance system as well as for additional effluent treatment for compliance with the standards for reuse; and Construction, operation and maintenance of recharge facilities 8

9. Technical Assistance on Reuse of Wastewater and Storm Water Harvesting in the Gaza Strip (Austrian Project) Project Objectives 1.The main objective of the Austrian Fund Project is : “ To develop institutional and legal frameworks for the optimized development and management of wastewater reuse and storm water harvesting in the Palestine, 2. Proposals for legal reforms 3. Development of regulations and guidelines 4. Development of a tariff structure 5. Pilot projects for testing institutional and legal proposals 9

10. Current Institutional and legal Setup in Palestine 10 Level of InterventionRelevant Institutions PolicyCabinet of Ministries, National water Council RegulatoryPalestinian Water Authority(PWA) Service Delivery Level Bulk Water Utility Regional water Utility Water Users Associations

11. Dynamic Water Governance Strong institutional arrangements include the necessity that the delegated tasks will be implemented and reported according to the agreed mandates which eventually will lead to efficient plans and regulations in terms of setting standards, and performance of monitoring and enforcement. Required capacity building and training. It will be required to invest adequate wastewater collection, treatment, storage, distribution and irrigation schemes, and develop a sustainable operational and financial management system for them. These three components (institutional / legal, technical and economic) will directly lead to effective and maximised reuse of wastewater, that benefits the farmers, and provides good environmental and public health protection 11

12. Dynamic Water Governance 12

13. 13 Efficient institutional arrangements are part of the total solution… Efficient Institutional and legal Arrangements Adequate WW collection and treatment infrastructure Good standard, effective monitoring and enforcement Effective water pricing and tariff system Reliable WW supply and quality Capacity Building and Training Effective Wastewater Reuse Good environmental and public health protection Good agricultural market conditions Maximization of wastewater reuse Efficient plans and regulations Efficient wastewater collection and treatment

14. Reuse management Options The roles and responsibilities for wastewater sector activities are not currently within the mandate of any authority but are necessary for implementation and operation of WW reuse schemes: MoA PWA EQA Municipalities Independent Utility 14

15. Alternatives of Treated Wastewater Distribution Utility (WWTDU) TWWDU being part of the Governmental Structure (PWA or MoA) TWWDU being part of the (Coastal Municipal) Water Utility TWWDU being organized by the end users (Farmers / Water Use Organizations) TWWDU as independent utility 15

16. Suggested Institutional Framework TWWDRU 16 TWWDRU PWA regulator MoA/EQA Board of Director Water Utilities Farmers / WUA Supervising Council PWA/ MoH / EQA, monitoring and control Supervising Council PWA/ MoH / EQA, monitoring and control Water flow Regulation Monitoring and Control Supervision

17. Supervising Council The WWDU will be regulated by: 1. the Palestinian Water Authority (PWA) in terms of water management (quantity and quality) and related standards 2. the Environmental Quality Authority (EQA) in terms of environmental protection and related standards 3. the Ministry of Health (MoH) in terms of protection of the occupational health issues for (farmers) as well as the public health (consumers of products irrigated with treated wastewater) and related standards 17

18. Duties: Board of Directors -1 Directing the TWWDU to accomplish it’s best interests, objectives and goals. Laying down general policies and identifying the means to implement those policies after their endorsement by the Stakeholder Supervising Board (SSB) Electing a new Chairman and / or Director General Drafting regulations and instructions governing the work of the TWWDRU and submitting them to the SSB for approval, as well as taking any decisions needed to ensure smooth work process. Issuing and ratifying any regulations in connection with wastewater post treatment, storage and distribution Fixing fees for wastewater reuse and putting them into effect after obtaining the approval of the related authorities and the SSB Drafting and issuance of regulations on the price and cost of wastewater reuse by cubic meter and putting them into effect after obtaining the approval Directing the TWWDRU operations in consistence with technical specifications and water quality standards. Managing the TWWDRU ’s administrative, financial, technical and legal affairs. Managing the TWWDRU ’s marketing and customer satisfaction management activities 18

19. Duties: Board of Directors -2 Calling the SSB to convene for both regular and emergency sessions; looking into its recommendations and implementing its decisions. Approving appointment of new employees, technicians and workers and fixing their salaries and looking into any matters in concern with them. Fixing and endorsement of Director General and Members of the Board of Directors remunerations Approving investment plans and O&M programs Discussion and preparation of the annual budget of the TWWDRU for its submission to the SSB for approval. Preparation of the annual reports Hiring an audit office to audit the TWWDRU ’s accounts. The Board of Directors may authorize any of its members to accomplish specific tasks. Any other matters necessary to ensure smooth process of work or deemed necessary by the TWWDRU. 19

20. Proposed Duties and Goals – WWDU Receiving (treated) wastewater from Water Utilities or others, performing adequate post- treatment, and supply and distribution of treated wastewater to farmers and to any other party. Taking all actions needed to treat, store and distribute treated wastewater according to the standards set by the competent parties and pursuant to effective laws. Ensuring that the distribution of treated wastewater will at all times abide the quality standards set by the competent authorities in the wastewater and sewage sectors Management and promotion of post treatment, storage and distribution in accordance with technical standards and with available resources. Owning and operation of wastewater post treatment, storage and distribution utilities and establishment of any other facilities necessary to accomplish the Council's goals. Making appropriate plans and putting into use any means to protect public health, and to reduce water and environmental pollution hazards. Importing all equipment and machinery needed for post treatment, storage and distribution of treated wastewater Entering into agreements with national, international and regional parties as a means of accomplishing set objectives as well as attaining any rights, concessions and licenses it deems necessary; as well as executing such agreements and making use of rights, concessions and licenses in conformity with the law. Investing surplus proceeds from the water and sewage sector in the manner it sees fit and in consistence with the goals of the Council subject to applicable laws. Engaging in any other acts decided by the Council towards accomplishing its objectives and best interests. 20

21. Legal Structure Depends on stakeholder’s structure (Public Utility versus PPP) The TWWDU shall prepare and distribute treated wastewater and shall act under Law No. 1 of the Year 1997 and in consistence with effective water, agriculture and other relevant laws in the PNA territories. The Legal Mandate of the TWWDU shall be arranged by a Bi-Law (similar to Basic Law for the Coastal Municipal Water Utility) to be published in the Palestinian Official Gazette. The TWWDU shall enjoy legal personality status and shall be entitled to acquire rights and bear responsibilities. The TWWDU shall be operative within the administrative and territorial mandate of the PNA in the West Bank and Gaza Strip governorates. 21

22. Schematic Depiction of Legally Defined Roles and Responsibilities for Effluent Reuse 22 Institution Task NWCPSIEQAPWAMoAMoHCMWU Farmers WUAs NGOs Private Sector 1.Draft laws and regulations X 2.Approval of laws and regulations X 3. Reuse strategy (to be approved by reuse committee) X X 4.Definition of standards for reuse X 5.Approval and publication of standards X 6.Determination / adjustments of tariff structure X 7.Review of tariffs with regard to cost recovery X 8. Determination of location for effluent irrigation, irrigation methods and application rates X 9. Licensing effluent irrigation, effluent discharge and groundwater recharge X 10.Construction, O&M of effluent conveyance system X X 11. Construction, O&M, cost sharing of field effluent distribution system X X X 12.Contracting with farmers X X 13.Contracted effluent supply to conveyance system XX 14. Effluent tariff collection and cost recovery (O&M; additional treatment) X 15.Quality control of effluent X

23. Some Financial Considerations 23 TWWDRU Farmers / WUA Grants for capital investment Financial Operational Support WW Reuse subsidies WW Reuse Fees Water Utility WW Fees Crops revenues Operational costs Interim solution Profits To Stakeholders

24. Financial Considerations Financially, the TWWDU will depend on wastewater fees from the farmers, as well as grants to pay for its infrastructure. Meanwhile the current economic situation of the farmers is insufficient to pay for the actual cost of management and distribution of treated wastewater. If also the TWWDU would have to pay for the received wastewater from the water utilities, then the financial imbalance would become even greater. It suggested that this could be overcome through provision of subsidies directly to the end users (farmers), who in turn will have to pay a market confirm fee to the TWWDU using this subsidy. This will motivate the TWWDU to develop a realistic business approach right from the start. If eventually, the agricultural and economic market conditions for the end users would improve, the system of subsidies can be gradually downsized until an open and effective financial market system develops for optimized and maximized reuse of treated wastewater. 24

25. Public or Private Remaining question is to what extend the independent organization should be publically owned, or that the private sector would be invited to participate in the activity as well. Some considerations for engaging the private sector in wastewater distribution are: inviting the private sector to participate will enables generation of private investments in the wastewater reuse sector; it will also enable to mobilize experience and expertise that has been built up elsewhere in the private sector. Inviting the private sector requires that the wastewater distribution can be developed as a profitable business. On the other hand, this provides an opportunity for introducing market discipline into the wastewater sector. It requires that risks are properly defined, whereas the commercial risks should be then born by private partner. One private involvement option is the introduction of a Public Private Partnership (PPP). This can be efficient, if the public and the private responsibilities are clearly formulated, and both are committed to their responsibilities, in an agreed formula for resolution of disputed, might these arise. 25

26. Thank you… 26