Promoting a Wastewater Management Revolution in Asia-Pacific Summary for Group Discussion

1. Promoting a Wastewater Management Revolution in Asia-PacificSummary for Group Discussion Dr. Anand ChiplunkarPrincipal Water Supply and Sanitation Specialist Asian Development Bank

2. Wastewater management revolution • Knowledge drive: compilation of successful and sustainable environmental sanitation case studies – institutions and sustainable frameworks • Technology drive: specific technology datasheets for different treated output standards required for various end-uses • Financing and incentives drive: business briefs and pre-feasibility studies with financing mechanisms to fast-track wastewater investment projects, and encourage extraction of resources from wastewater • Awareness and advocacy drive: knowledge products, capacity development workshops , networking with stakeholders in round tables for taking up identified business opportunities

3. Knowledge Drive • Compile sustainable models/case studies • Choices in the sanitation ladder

4. Technology Drive • Many technology choices Conventional: Sihanoukville DEWATS: Viet Nam Constructed Wetlands: China

5. Financing Drive…1 • Develop Business briefs and Pre-feasibility studies • Models of Affordable and innovative financing • Gram Vikas (India):Socialized community fund raisingfor toilets and bathing facilities • Kerala (India), Sri Lanka and Viet Nam: Revolving fundsfor toilets and biogas plants • Philippines: Environmental User Fee; microfinancing • Public – Private Partnerships • Philippines and India: private concessionairesresponsible for investments, operation and management • Other mechanisms • Nepal: Output-based aid • Shanghai (PRC) and Fiji: Clean development mechanism

6. Financing Drive…2 • Project Development Fund (PDF) • Can be recovered with returns in successful projects • Viability Gap Fund (VGF) • Enhancing viability to make it financially attractive • Usually upfront grant • Operational/Transition Support Fund • Support cash flow based on business plan and reforms • Grants or Debt to project in O&M • Other measures • Credit Enhancement • Risk Guarantee Mechanisms In ADB: • Loan – single or multi-tranche facility • Grant • Non-sovereign public sector facility • Local currency loan • Debt management products • Private Sector – equity investments, loans, guarantees, and B loan (complementary financing scheme)

7. Different uses: Source of water for irrigation: VietNam, China Source of water for industrial use: India Biosolids/Organic fertilizers: Philippines Feeds for aquaculture: Bangladesh, India Source of energy Biogas for electricity, lighting and cooking: India, China, Cambodia, Indonesia, Nepal Potential for carbon credits CDM: Kinoya Wastewater Treatment Project in Fiji Incentive Drive: Revenue Potential…1 PROMOTE REUSE OF TREATED WASTE Fertilizer: Philippines Biogas: Cambodia

8. Bali, Indonesia: Reuse of treated wastewater from the “Eco-Lagoon,” which is also a tourist attraction India: Reuse of treated wastewater for industrial use, in Surat, Gujarat State through PPP is augmenting water supply, set to earn US$6 million per year Incentive Drive: Revenue Potential…2 POTENTIAL REVENUES • Xiamen, PR China: The Shiweitou Sewage Treatment Plant supplies 24,000 cu.m/day of treated wastewater for watering plants in more than 500 ha., earning RMB 2 million per year Treated wastewater: China • Bangladesh: duckweed-based wastewater treatment pond - net profit of almost US$ 2000/ha/y from operation and using duckweed as feeds in aquaculture farms. Eco-lagoon, Nusa Dua

9. Hygiene and environmental education in schools India: Total Sanitation Campaign Philippines: Fit-for-School Program Triggering demand: community-led total sanitation Bangladesh, Cambodia Stakeholder participation: SANIMAS in Indonesia Social marketing of sanitation India Stimulate demand and willingness to pay Awareness and Advocacy Drive…1 INCREASE AWARENESS AND INVOLVE THE STAKEHOLDERS

10. Partnership with the private sector Need bankable projects and cost recovery mechanism Business briefs and pre-feasibility studies with willing partners Conduct Round Tables Govt/municipal administration, private sector, consumers, financiers etc. Address affordability issues: lower interest rates, longer repayment period Awareness and Advocacy Drive…2 • This is a key component of the Asia Sanitation Revolution • Go beyond advocacy • Develop sustainable business opportunities • Have stakeholder buy-in

11. Wastewater management revolution • Knowledge drive: compilation of successful and sustainable environmental sanitation case studies – institutions and sustainable frameworks • Technology drive: specific technology datasheets for different treated output standards required for various end-uses • Financing and incentives drive: business briefs and pre-feasibility studies with financing mechanisms to fast-track wastewater investment projects, and encourage extraction of resources from wastewater • Awareness and advocacy drive: knowledge products, capacity development workshops , networking with stakeholders in round tables for taking up identified business opportunities

12. THANK YOU.For More Information: achiplunkar@adb.org Web site: www.adb.org/water