Environment & Poverty Times

07 2012

UNEP/GRID-Arendal

16 17

Enabling conditions, such as supporting an economic regulatory framework (ensuring collection of user fees and a fair return on investment), and a Supreme Court decision requiring all related government agencies and utilities to clean up Manila Bay, have spurred investments in sewerage, wastewater and septage management. Private concessionaires in the Manila metropolitan area are investing millions of dollars to increase coverage and improve the water quality of rivers and the bay. Steve Griffiths

Constructed wetlands are a cost-effective wastewater treatment option, especially in per-urban and rural areas where land is available but capital may be a constraint. At Bayawan, a second-class component city, the local government raised funds to build and operate a reed-bed system in a coastal village. The treated wastewater is stored to supply water for gardens in the village and for fire-fighting. Steve Griffiths

affordable and doable. Many local governments are turning towards decentralized wastewater and sludge treatment facilities, which offer more operationally effective solutions. Con- structed wetlands, reed beds and duckweed systems also provide low-cost treatment. Treated wastewater from these systems is used for flush- ing toilets, watering plants, irrigation and fire fighting, with savings on water bills.

A significant factor in successful public-private partnership projects is the enabling environ- ment and economic regulatory framework provided by government, which reduces investment risks. In the Philippines private concessionaires will be investing about US$ 2 billion to improve environmental sani- tation in the Manila metropolitan area, even without government subsidy. These companies have also treated septage, sludge and biosolids, turning them into organic soil-conditioners. In Surat, India, domestic wastewater will be treated and sold for industrial use by a conces- sionaire. This will allow recovery of costs, im- prove water quality and augment water supply.

Biogas digesters connected to toilets supply energy for lighting and cooking in many rural areas in the region. Safe fertiliser from eco-san toilets has turned some farmers into entrepreneurs.

Examples that have allowed households to gain access to improved sanitation include: innovative financing mechanisms as an incen- tive for households to invest in on-site sanita- tion systems and cities to invest in wastewater management systems; the socialized corpus fund in Orissa, India; a microfinancing and

revolving fund in central Vietnam; a revolving credit pool scheme in Sri Lanka; output-based aid in Nepal; and emerging social financing schemes across Asia. To make sanitation more viable, user fees are now being levied in cities in China, Malaysia, Philippines and Vietnam. Wastewater treatment facilities can earn income by generating energy as well as from carbon credits through the Clean Deve- lopment Mechanism. ADB has also developed mechanisms, such as the operational support fund in Pakistan and viability gap fund in Kyrgyzstan, to allow utilities to recoup costs and become a sustainable business.

Achieving sustainable sanitation These success stories are still outweighed by the challenges that remain. The need for ef- fective and lasting partnerships and collective efforts is increasingly urgent. The Sanitation Dialogue, in Manila on 23-25 May 2011, em- phasized the need for public-sector decision- makers to work outside traditional silo-based approaches. Several key messages stand out in the Dialogue for implementing the Asia Wastewater Management Revolution. It is essential to obtain commitments from politi- cal leaders and finance ministries to prioritize sanitation investments. The socioeconomic and environmental costs of inaction on sanita- tion must be brought home to policy-makers and those who allocate budgets. Benefits derived and lessons learned are available from countries which have adopted national and/or city sanitation policies and strategies.

It is time to move away from traditional business methods. Sanitation does not end with the provision of household toilets, but

includes wastewater collection, treatment, disposal and/or reuse, and maintenance of assets. Public and private-sector utilities alike must adopt a corporate approach to ser- vice delivery. Governments must introduce the necessary regulations and institutional arrangements, to reduce risks and cover operating and maintenance costs.

Wastewater management can make a sub- stantial contribution to water security, as well as food and energy issues. Wastewater must be seen as a resource with potential financial returns – from augmenting water supply for irrigation, power cooling, industrial and non- potable uses to producing fertiliser and energy – and opportunities for green employment.

It is vital to raise public awareness and mobilise the community. Stakeholder con- sultations, involvement and partnerships are critical to overcome taboos and achieve success by motivating communities, creat- ing demand for improved sanitation and building consensus on solution options.

Nor should the link between technology, and political and social knowledge be overlooked. Technology options are not widely known. The lack of capacity to select appropriate technologies and apply them to local condi- tions has resulted in either political indiffer- ence or failed projects. For many Asian cities, solutions can be implemented in phases over time, both in terms of upgrading and rolling out new systems to provide greater treatment and coverage. Circumstances vary from one area to the next, providing an opportunity to try a range of solutions.

Public funds must be optimized, with con- sideration for targeted subsidy schemes. Public-funded support should supplement sanitation markets, not replace them. Government incentives should be better geared to private-sector requirements, espe- cially for long-term investments. Costs can be recouped through innovative financing mechanisms. The poor are willing to pay, if they are given affordable, flexible pay- ment terms.

Capacity must be developed, particularly at local level. Such development – in sewage treatment and proper reuse, packaging bankable projects, procurement, asset management and contract management – is essential to the short-term success and long-term sustainability of sanitation improvements.

The Sanitation Dialogue revealed real, ongo- ing developments, which prove that house- hold sanitation, wastewater management and reuse are economically and financially rewarding, and debunk the assumption that sanitation is an investment dead-end. In a changing world, innovative approaches and new currents of thought offer alternative avenues for decision-makers to explore. Thus, with enough attention and action from policy-makers, and financial movers and shakers, Asia may well be on its way to a wastewater management revolution.

About the authors: Anand Chiplunkar is principal water supply and sanitation specialist, and Maria Corazon Ebarvia is a sanitation and wastewater management specialist at ADB.