Nexus Water – Energy – Climate: Experiences of KfW-financed projects in the MENA-region

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

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

3. KfW: Water SectorOverview (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) 3

4. Wastewater: Climate Protection and Energy EfficiencyJordan: 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 EfficiencyJordan: 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. 150 000 tons CO2-eq through sewage sludge (appr. CO2-emissions of electricity production for 150 000 inhabitants)

6. Wastewater: Climate Protection and Energy EfficiencyJordan: 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 ofdrying 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 EfficiencyJordan: new Jordanian-German project financed through KfW

8. Wastewater: Climate Protection and Energy EfficiencyJordan: new Jordanian-German project financed through KfW

9. Wastewater: Climate Protection and Energy EfficiencyJordan: 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 EfficiencyJordan: 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 EfficiencyTunisia: 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 EfficiencyTunisia: 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 12

13. Water Supply: Climate Protection and Energy EfficiencyJordan: 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 EfficiencyJordan: 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 EfficiencyJordan: 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 EfficiencyJordan: 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) 16

17. Synopsis • 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 • Waste Water • Need re. sludge treatment in the MENA-region • High level of GHG-reduction