Siddhartha Prakash

2030 Water Resources Group
Wastewater Initiatives
Siddhartha Prakash, North India Coordinator
2030 WRG Country Engagement Process
Engagements focus on a combination of financing, policy reform, and programmatic approaches
through the A-C-T process for fact-based, inclusive and sustainable outcomes
Step-wise Approach
Step-Wise Program
Step 1
▪Analysis
Step 2
▪ Convening
Result
▪ Transformation
to support better decisions
public-private-civil society
stakeholders
to higher performance
and sustainability
•
•
Comprehensive fact base
with broad agreement
Cost, Benefit or Risk analysis
depending on countries needs
•
•
Multi-stakeholder dialogue
to help government shape
and take forward priority
programs, plans and actions
•
Concrete proposals to ensure
lasting change on the ground
Can be Programs, Plans, but
also financing and policy
reform
2
India Program
2030 WRG’s India Program includes an India National/ U.P. program, and engagements for
Maharashtra and Karnataka, including a strong focus on wastewater
India Footprint
India National
Ganga/ U.P. Engagement
 Municipal PPP for
▪ Inputs for National Planning
Wastewater Treatment
and Reuse (pilot for
Mathura-Vrindavan)
Commission’s Water Strategy/ 12th FYP*
▪ National Water Dialogues for stakeholder
▪ Hindon River
alignment (e.g., India Water Week; OECDADB-FICCI-2030 WRG Seminar)
Rejuvenation (Agri;
Municipal; Industrial)
▪ Reports on Collective Action and AgriWater Solutions
State of Karnataka
State of Maharashtra



▪ State-wide program on drip
irrigation in sugarcane
Agri-water PPP-IADs**
Cotton-Water Platform for water security
and livelihood promotion
 500,000 farmers
Wastewater reuse policy framework and
project facility
▪ Wastewater Reuse policy
framework and project
development facility
▪ PPP-IADs** for irrigated areas
* Five Year Plan ** Public-Private Partnerships for Integrated Agriculture Development
2030 WRG
3
3
Bangladesh Program
Situated downstream of three river basins, the Bangladesh program prioritizes interventions
for both efficiency and quality
Bangladesh Footprint
Bangladesh National
•
•
Agri-Water Efficiency
MoU signed between Government of
Bangladesh, Government of Netherlands,
WB, IFC, and 2030 WRG for Bangladesh
Delta Plan 2100
• Improved water governance
• Improved infrastructure
investments
Multi-Stakeholder Platform chaired by the
Cabinet Secretary

Innovative financing mechanisms
and market linkages

Water-efficient micro irrigation
technology with improved
irrigation practices at the firm
level
Water Governance
Greater Dhaka Watershed Restoration



Increased treatment of industrial and urban
wastewater through private sector investment/
PPPs


Better management of waterbodies in Greater
Dhaka Watershed (rivers and wetlands)
2030 WRG
4
Incentives for better Water
Resources Management
Legislative and Institutional
Strengthening
Green Finance
4
SAMPLE ENGAGEMENTS
2030 WRG
5
Wastewater Reuse – Global Example
NEWater, Singapore
• Started in 2003 with wastewater reuse
• Now meets 30% of Singapore’s total water demand, focusing at 55% in future
• Through Design Build Own Operate (DBOO) Model for four treatment plants, private
sector has financed, constructed and operated the facilities based on long term (>=25
year) concession agreements
• Public Utilities Board (PUB) purchases treated wastewater from the plants as per
tariff formula laid down in the concession agreement
• PUB sells recycled water to industrial consumers (450 industrial connections) at
prices which are regularly determined
Success factors:
• PUB takes the billing and collection risk (revenue risk)
• Proactive fund to cover the cost of recycled water use feasibility studies, and provide
up to 50% of capital cost of water recycling facilities.
White Paper on Urban Waste Water PPPs, Powertech Engineering, 2015
International
2030
WRG Overview of Best Practices in Wastewater Management, Sustainability Managers,2010
2030 WRG Mathura-Vrindavan Wastewater Treatment PPP
PPP designed for long-term O&M accountability to ensure no additional wastewater
enters the river
Scope and Components
Scope of Engagement
Rationale for PPP
Accountability for
sustainable O&M
100 MLD sewerage collection/
treatment through rehabilitation,
construction & O&M
Partial financing by
the private sector
Technology
optimization/
lowest lifecycle cost
Reliable source of
treated water for
industry
Treatment of additional flows of
wastewater in nallahs
Preparatory Engagement:
•
•
2030 WRG
Transaction Advisory: Deloitte
Technical Advisory: AECOM/ Dr Nadeem
Khalil, Aligarh Muslim University
2030 WRG Karnataka Wastewater Reuse Workstream
2030 WRG
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Karnataka Wastewater Reuse Challenges and Constraints
Social Pressure
Available Information
Market Regulations
• Lack of awareness among both decision makers
and society on opportunities of wastewater reuse
• Lacking market regulations either not sufficiently
in place or not enforced
• Current pricing of water does not reflect the
economic externalities
• Poor operational performance of existing STPs,
insufficient yield
Inefficient Transaction Process
Difficult Business Case
Risks
2030 WRG
• Conveyance infrastructure network unfit to
guarantee optimum collection of waste to be
treated
• Poor transaction process: poor scoping,
insufficient bid time, revenue risks ,operating and
design risks, rigid contract etc.
Karnataka Wastewater Reuse Market
• State will require twice as much water by 2030 as is consumed today, a businessas-usual approach will help meet only half of this requirement
• Current demand 26 tmc, in 2030 57tmc (efficient scenario) 85 tmc (business as
usual scenario)#
• Already now water intensive industries, such as power and steel, are hampered by
water shortages
• In water allocation, Industry has lower priority than other sectors such as drinking
water, agriculture, etc.
• Costs of ground water abstraction is increasing
• Environmental degradation resulting from depletion of resources, both
groundwater and surface water
• Supply of wastewater by AMRUT cities/towns existing / proposed STPs estimated
at 651mld, reliable production volume of 250 – 300mld in the next 5 years, of
which less than half will come available for reuse by industry
2030 WRG # - Final Report; 2030WRG – Creating a sustainable water future for Karnataka – Urban and Industrial Sectors
2030 WRG Karnataka Wastewater Reuse Workstream
Key action areas include (1) policy strengthening, and (2) PPPs for reuse of treated
municipal wastewater in industry
Workstream Elements
I. Wastewater Policy Strengthening
II. Wastewater Reuse Projects
• Concept: Development of a policy
framework for reuse of treated
municipal wastewater by industry
• Concept: Promotion of wastewater
reuse PPPs through a Project
Development Facility
• Rationale:
• Reduction in freshwater
demand
• Reduction in water pollution
• Development of business
models
• Fast-track reuse projects/ PPPs
through a dedicated Solutions
Center
• Rationale:
• Institutional framework
development
• Incentives, penalties and
regulation to promote reuse
Anchored with Urban Development Department
2030 WRG
11
Possible Policy Directions Under Exploration
Establish conducive conditions
Ensure availability treated
wastewater
Mainstream wastewater reuse in
planning and construction
Prioritize industrial sites / large
industries linkage with AMRUT
Establish an Information Centre to
promote wastewater reuse
Rationalize water use
Target domestic wastewater
reuse by the industry
Transparency on the costs and
benefits of water
Raise the price of potable water
used for non-potable purposes
Raise the price of groundwater /
surface water usage
Enhance operational performance
Embark at private sector engagement
Establish a Centre for Transaction Support for wastewater reuse projects
Establish a Project Development Fund for wastewater reuse
Earmark Viability Gap Funding for wastewater reuse pilots
2030 WRG
Mapping of Policy Options
BOT third
party user
charge
high
BOT third
party
Annuity
DBO
Model
5. Ensure
availability
treated
wastewater
complexity
low
4.Raise price
groundwater /
surface water
2. Transparency
12. Earmark
viability gap
Funding
3.Raise water
price for nonpotable use
6. Mainstream
wastewater reuse
in planning and
construction
10.Establish
Centre for
Transaction
Support
11.Establish
PDF
BOT
end
user
PPP
Cost Benefits
1.Target
waste water
reuse
low
2030 WRG
8.Prioritize
linkage between
industrial sites /
large industries
with AMRUT
9.Establish
Information
Centre
impact
high
Key Learnings
 Pre-feasibility studies undertaken prior to tender
 Stakeholder consultations on demand and payors
 Balance between cost and quality (not L1)
 Flexible arrangements for mid course corrections
 Clear roles and responsibilities of all parties
 Timely financial disbursements and payments
 Rapid grievance redress system to resolve issues
 Incentives, regulations and penalties enforced
 Trust and ownership for long term partnership
2030 WRG