Welcome @ IIT Kanpur

Public Private Partnership (PPP) for Recycling Domestic Wastewater (Sewage) Welcome @ IIT Kanpur

Prayer May He protect us Both together May He nourish us Both together May we Both acquire Strength together Let our study be brilliant May we not Cavil at each other Avert Bodily, Natural and Supernatural Hindrances

Saturday, February 5,2011 PBCEC, IIT Kanpur Public Private Partnership (PPP) for Recycling Domestic Wastewater (Sewage) Ganga River Basin Management Plan by Coordinator: Dr Vinod Tare, Professor Environmental Engineering and Management Programme Indian Institute of Technology Kanpur KANPUR - INDIA

GRBM: Objective Maintenance and restoration of wholesomeness of Ganga system and improvement of its ecological health with due regard to conflict of interest in water uses in entire river basin

Challenge • Un-polluted Flow ( ) ) • Longitudinal, lateral and vertical connectivity • Adequate space for various river functions • Ecological entity • Continuously flow ( )

Our Philosophy Apply modern science and new technologies but with traditional wisdom GyanDhara + Jana Gyan • Supportive Capacityand Assimilative Capacity • Stop/Arrest Deterioration of the River Systems • Operate to Mimic Natural Conditions • Reverse/Restore

Working Papers … • Active Flood Plain Mapping - Defining the “River Space” • Riverbank and River Water Quality Management Plan • Sewage Treatment – Recommendations and Guidelines • Plan for Construction, Operation and Maintenance – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBMP

Active Flood Plain Mapping – Defining the “River Space” • A river must have ‘adequate space’ to perform its myriad function. • The river ‘valley’ and ‘active floodplain’ define that space for the river albeit with different functionality. • It is important that the functionality of the river valley and floodplains are recognized and documented properly for a sustainable river management.

Riverbank and River Water Quality Management Plan Uttarkashi Rishikesh Haridwar Garh Mukteshwar Ganga Delhi Lucknow Haryana Ram Ganga Mathura UP Agra Kali Yamuna Kanpur Gandak Rajasthan Gomti Bihar Ghagar Kosi Yamuna Ganga Ganga Patna Allahabad Banaras Son Madya Pradesh West Bengal

Riverbank and River Water Quality Management Plan • Removal of Encroachments and Land Acquisition • Restriction / Banning of Undesirable Activities • Riverbank Beautification and Development • Sewage Diversion Works • Sewage Treatment Plants • Storage, Transport and Reuse Infrastructure for Treated Water and Sludge

Riverbank and River Water Quality Management Plan • IMPORTANCE OF rrwqmp • Actionable items prescribed in all RRWQMPs, when taken together, constitute the comprehensive list of all projects to be completed in the next 25 years for comprehensive riverbank and river water quality management for all major towns in the Ganga River basin. • Once this comprehensive information of all projects to be funded over the next 25 years is available with the NGRBA, DPRs can be invited from ULBs for selected projects in a phased manner. • A readily available record of projects completed, ongoing and not yet sanctioned can be kept. The progress of various towns towards completion of works recommended in RRWQMPs will be readily available. • Since the quantum of work to be done over the next 25 years is known, yearly funding requirements towards RRWQMP related can be readily computed and a 25 year plan of funding requirements can also be made. • Agencies other than NGRBA can also fund works recommended in RRWQMP. In future, even ULBs can initiate some works based on internal accruals or using the PPP model.

Riverbank and River Water Quality Management Plan • Work packages • For each ‘Actionable Item’ mentioned above, several work packages must be proposed in a phased manner until 2035 for gradual fulfillment of the final objective. • The proposed work packages must have sufficient details such that DPRs can be prepared for these work packages by the ULBs as and when funding is available from NGRBA and other agencies.

Sewage Treatment – • Guidelines and Recommendations • General • Sewage is a major point source of pollution. • The target of “NirmalDhara” i.e. unpolluted flow can be achieved if discharge of pollutants in the river channel is completely stopped. • Also, sewage can be viewed as a source of water that can be used for various beneficial uses including ground water recharge through surface storage of treated water and/or rain/flood water in an unlined reservoir. • This may also help achieving “AviralDhara”.

Sewage Treatment – • Guidelines and Recommendations • In order to reduce substantial expenditure on long distance conveyance of sewage as well as treated water for recycling, decentralized treatment of sewage is advisable. • As a rule, sewage treatment plant (STP) of greater than 50 MLD should be avoided. • All new developments must build in water recycling and zero liquid discharge systems. Fresh water intake should be restricted only to direct human-contact beneficial uses of water. • For all other uses properly treated sewage/wastewater should be used wherever sufficient quantity of sewage is available as a source water for such purposes. • All new community sanitation systems must adopt recycling of treated water for flushing and completely isolate fecal matter until it is converted into safe and usable organic manure.

Sewage Treatment – • Guidelines and Recommendations • Recommended Treatment Chain

Sewage Treatment – • Guidelines and Recommendations • Stage I Preliminary Treatment: • a) Three Stage Screening: - 25 mm bar racks (before pumping) • - 12 mm bar racks • - 5 mm mesh • b) Aerated Grit Chamber if following unit operation is aerobic and Normal Grit Chamber if following unit operation is anaerobic. • Expected effluent quality after preliminary treatment: • No floating materials including polythene bags, small pouches, etc. • Proper collection and disposal of screening and grit.

Sewage Treatment – • Guidelines and Recommendations • Stage II Primary and/or Secondary Treatment: Many options are available for second stage treatment. These options can be grouped into following three categories. • Pond Based Systems or • Activated Sludge Process (ASP) and Its Modifications or equivalent systems including but not limited to SBR, UASB followed by ASP, ASP operated on Extended Aeration mode (EA-ASP), ASP with Biological Nutrient Removal (ASP+BNR), and MBBR or • MBR • Expected effluent quality after primary and secondary treatment: • BOD < 30 mg/L • SS < 20 mg/L • Nitrified effluent

Sewage Treatment – • Guidelines and Recommendations • Stage III Tertiary Treatment: Coagulation-flocculation-settling followed by filtration and UV disinfection. Expected effluent quality after tertiary treatment: • BOD < 10 mg/L • SS < 5 mg/L • Phosphate < 0.5 mg/L • MPN < 100/ 100 mL • Where sewage flows are low and/or land can be spared without compromising on other developmental objectives or agriculture, waste stabilization ponds followed by constructed wetland can be adopted without coagulation-flocculation-settling.

Sewage Treatment – • Guidelines and Recommendations Cost of Treatment and Land Requirement Treatment Cost (as in 2010) and Corresponding Plant Footprint for various Secondary Treatment Options

Sewage Treatment – • Guidelines and Recommendations • Sludge Management • The sludge dewatering should be done using thickener followed by filter press or centrifuge or any other equivalent mechanical device. • Sludge drying beds (SDB) should be provided for emergency only. SDBs should be designed only for 15% of the sludge generated from primary and secondary processes. • The compressed sludge should be converted into good quality manure using composting and/or vermi-composting processes. • Hazardous sludge, if any should be disposed of as per the prevailing regulations.

Sewage Treatment – • Guidelines and Recommendations • Flow Measurement • Flow measuring devices should be installed after the Stage I Treatment as well as at the outlet of the sewage treatment plant. • These flow devices should be of properly calibrated V notch with arrangements for automatic measurement of head. • Additional electronic or other type of flow meters may also be installed. • Arrangements should be made for real time display of measured (both current and monthly cumulative) flows at prominent places.

Sewage Treatment – • Guidelines and Recommendations • Bioassay Test • 10% of the flow (subjected to maximum 1 MLD) is required to pass through the bioassay pond.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Restoration of “Nirmal” Dhara • As stated by the IIT consortium in various forums, it is strongly felt that the restoration of ‘Nirmal’ dhara in all rivers of the Ganga basin will require, among other actions, the following steps concerning sewage collection, treatment and disposal processes. • Complete stoppage of the discharge of sewage, either treated or un-treated, from towns into all rivers of the Ganga basin. • All sewage must be collected and treated up to tertiary level (treatment guidelines for tertiary treatment specified elsewhere; effluent standards: BOD < 10 mg/L; SS < 5 mg/L; fully nitrified effluent; P < 0.5 mg/L; FC < 100/100 mL) • The treated water should be recycled or reused for various purposes, i.e., industrial, irrigation, horticultural, non-contact/non-potable domestic uses, groundwater recharge, etc.

Typical City / Town Item 1: House Connections, Laterals, Branch Sewers, Main Sewer Item 2: Trunk Sewers Item 3: Intercepting Sewers GangaRiver Item 5: Pumping Stations Item 4: Nala Tapping Pandu River Item 6: STP Item 7: Reservoirs, Canals and Pipe lines for Treated Water GangaRiver

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Sewage Collection, Treatment and Disposal Infrastructure • Essential components of sewage collection, treatment and disposal infrastructure to fulfill the objectives of ‘Nirmal’ Dhara are the following. • Item 1: Construction of main sewers, branch sewers, laterals and house connections in urban areas for collection of sewage from individual households. • Item 2: Construction of trunk sewers in urban areas for the conveyance of the sewage to the sewage treatment plant. • Item 3: Construction of intercepting sewers for diverting the flow of small ‘nalas’ into the sewer system. • Item 4: ‘Nala’ tapping works for diverting discharges of large ‘nalas’ to the sewer system.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Sewage Collection, Treatment and Disposal Infrastructure • Essential components of sewage collection, treatment and disposal infrastructure to fulfill the objectives of ‘Nirmal’ Dhara are the following. • Item 5: Pumping stations for conveying sewage flowing in trunk sewers and large ‘nalas’ to sewage treatment plants. • Item 6:Sewage treatment plants capable of treating sewage to tertiary levels and proper disposal/reuse of sludge produced from sewage treatment plants. • Item 7: Structures like reservoirs, canals and pipelines for storage and conveyance of treated sewage for reuse.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Funding and Implementation Issues: Current Scenario • The land for the project was provided by the ULBs/State Governments. • The capital cost of the project was provided (as per current practice) by the central and state governments in 70 : 30 ratio. • Project DPR was prepared and the project implemented by government agencies like UP Jal Nigam (UPJN). • After commissioning, operation and maintenance for a stipulated period, the infrastructure is handed over to ULB. Subsequent operation and maintenance of the infrastructure was the responsibility of the ULB.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Funding and Implementation Issues: Current Scenario -The main deficiencies • In many cases, due to the lack of regular maintenance, and lack of allocated funds, the created infrastructure deteriorated at a rapid rate and became non-operational very quickly. • The sewage treatment plant capacity was often underutilized, since sewage conveyance and pumping infrastructure was either non-existent or was not functioning properly. • Adopted sludge management practices were insufficient for safe and secure management of solid residues arising from sewage treatment operations.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Funding and Implementation Issues: Current Scenario -The main deficiencies • Uninterrupted electricity supply was not ensured for the pumping stations and sewage treatment plants, leading to constant disruptions and sub-optimal performance. • DG sets provided for operation of pumping stations during power cuts were mostly non-operational. • Performance monitoring of the completed projects was not done in an objective and systematic basis, and effective action was not taken to improve the performance of the created infrastructure based on such monitoring. • Public participation/involvement in project monitoring was minimal.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Funding and Implementation Issues: Current Scenario -The main deficiencies • The net effect is that in most cases, the diversion of sewage from the rivers and treatment and safe disposal of domestic sewage as envisaged during project planning is never realized.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP Funding and Implementation Issues: New Paradigm Table Continued … … …

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP Funding and Implementation Issues: New Paradigm

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Private Participation: Design-Build-Operate (DBO) Mode - The income to the private party will be from three sources, • Annual payment of a fixed cost by the ULB towards the capital cost of the facilities developed. This payment will be over the entire design period (15 years) of the project and will be clearly specified in the contract. • Annual payment for O&M costs by the ULB, which will increase yearly and will also depend on the quantity of treated water produced. Payments will be over the entire design period (15 years) of the project and maximum payments for each year will be clearly specified in the contract.

PLAN FOR CONSTRUCTION, OPERATION AND MAINTENANCE – Sewage Collection, Treatment and Disposal Infrastructure Proposed under GRBP • Private Participation: Design-Build-Operate (DBO) Mode - The income to the private party will be from three sources, • Part of the profit (if any), from commercial exploitation of resources generated through sewage treatment, i.e., treated water, sludge and sludge-derived products, as specified in the contract. • DBO Model: Public Monitoring

Alternative Funding PlanforSewage Treatment PlantsConstructed underGRBMP Public – Ownership and MonitoringPrivate – Investment and Delivery 3R’s Responsibility, Respect and Returns Align the interest of all stakeholders than alienate any one

STP Characteristics • Excellent Preliminary Treatment: Triple Screen and Aerated Grit Chamber • Equalization Tank followed by primary sedimentation • Conventional Activated sludge for secondary treatment • Tertiary treatment: coagulation/flocculation, sedimentation, filtration • Sludge management: Centrifuge, belt filter press, etc. • Bioassay pond for treated effluent Capital Cost • The Capital Cost for such a STP is Rs. 80 Lacs/MLD (2010 prices) • Capital cost for a 50 MLD STP is thus Rs. 400 Crores (2010 Prices) …….Financing Plan for STP

Recurring Costs (2010 Prices): 50 MLD STP • Power Cost: 2.65 Lacs/year/MLD • Repair/Renovation/Re-Investment Cost: Rs. 3.20 Lacs/year/MLD • Chemical Cost: 0.30 Lacs/year/MLD • Manpower Costs • Manager: 4.8 Lac/year • Chemist: 2.4 Lac/year • Operator(4): @Rs. 12000/person/month = Rs. 5.76 Lac/year • Skilled Technicians (8): Rs. 9000/person/month = Rs. 8.64 Lac/year • Unskilled Labor (15): Rs 8000/person/month = 14.4 Lac/year • Total: Rs. 36 Lacs/year • Benefits: 50% of total = 12 Lacs/year • Total Manpower Cost = Rs. 0.96 Lacs/year/MLD • Total Recurring Cost: 7.11 Lacs/year/MLD …….Financing Plan for STP

Present Model: Time Horizon is 15 years • Payment of capital cost by central and state government in 70:30 ratio. • Payment Plan assuming 2 year construction period • 25 percent of payment at the start of construction • 50 percent of payment after 1 year • Balance 25 percent of payment after 2 years/end of construction • Payment of the recurring cost for the first five years of the plant operation by central and state government in 70:30 ratio • Payment of the recurring cost from the 6th to the 15th year of the plant operation by the ULB. …….Financing Plan for STP

Proposed Model: Time Horizon is 15 years • Construction, operation and maintenance of the STP by a service provider for the entire period • Capital cost for construction to be raised by the service provider through a loan from a financial institution. Assuming 2 year construction period • 25 percent of loan to be taken at the start of construction • 50 percent of loan after 1 year • Balance 25 percent of loan after 2 years/end of construction • The loan to be paid back by the service provider in 180 monthly installments starting from the first month of plant operation • Payments to be made to the service provider by central and state governments in 70:30 ratio in 180 monthly installments from start and up to the 15th year of plant operation. • A monthly installment shall consist of the following components 1. Capital cost Installment 2. Recurring cost 3. Management fee @15 % of the recurring cost 4. Service tax@10.3 % of recurring cost + management fee …….Financing Plan for STP

Financial Comparison: Present vs Proposed • Basis for Comparison is the NPV in January 2012 • Interest Rate: 10 percent per annum, compounded monthly • Inflation: 6 percent • Start of Construction: January 2012 • End of Construction: December 2013 • Start of Operation: January 2014 • End of Operation: December 2028 …….Financing Plan for STP

Monthly Payments: Proposed vs Present …….Financing Plan for STP

Cumulative Payments: Present vs Proposed …….Financing Plan for STP

Break-up of NPV: Present Model Total NPV (2012) = Rs. 105.42 Crores …….Financing Plan for STP

Break-up of NPV: Proposed Model Total NPV (2012) = Rs. 136.44 Crores …….Financing Plan for STP

Proposed Model: Real Values of Monthly Payments for Selected Months Payment in January 2014 (1st Installment): Rs. 105.24 Lacs Payment in December 2028 (last Installment): Rs. 174.43 Lacs …….Financing Plan for STP

Present vs Proposed Model • The difference in NPV between the proposed and current model is Rs. 31.02 Crores • Of the above amount, • Management Fee (Rs. 9.01 Crores) accounts for 29.04% • Service Tax (Rs. 7.12 Crores) accounts for 22.95% • The balance amount of Rs. 14.89 Crores (48.1%) is attributed to the interest charges on borrowed capital cost inherent in the proposed model. Explanation: • Assuming the capital cost of the project in January2012 (Rs. 45.31 Crores) is invested at 10 percent compound interest (compounded monthly) up to December 2028. Assuming the yearly inflation rate is 6 percent, The NPV (2012) of the interest thus accrued is Rs. 14.89 crores. • Conversely, borrowing Rs 45.31 Crores in January 2012 under the same circumstances will result in an interest payment whose NPV (2012) is Rs. 14.89 Crores by the time the loan is fully repaid in December 2028. …….Financing Plan for STP

Present vs Proposed Model • Cost of Treatment (in January 2012): • Present Model: 0.38 paisa /L of treated sewage • Proposed Model: 0.50 paisa /L of treated sewage …….Financing Plan for STP

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