The Economics of Wastewater, by Dr. Jochen Eckart

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A presentation made by Dr. Jochen Eckart at Africa Water Week, 27 May 2014, in Dakar, Senegal.

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The Economics of Wastewater, by Dr. Jochen Eckart

  1. 1. The Economics of Wastewater African Water Week Dakar 27th May 2014 Dr. Jochen Eckart Visiting Assistant Professor Patel College of Global Sustainability UNIVERSITY OF SOUTH FLORIDA
  2. 2. ~2.5 Billion without improved sanitation ~780 Million without improved water supply Bad News: Sanitation is Lacking Behind
  3. 3. Economic Assessment Benefit-Cost Ratio for Sanitation 5.5 WHO 2012 Costs $1 Benefits $5.5 Benefit-Cost Ratio Water Supply 2.0 Benefits for whole society – economic value does not reflect direct financial impact for households, business or ministries.
  4. 4. Copyright © 2009 International Water Association 0% 20% 40% 60% 80% 100% BOD5 Nitrogen Phosphorus Potassium Percent Laundry/Bath Kitchen Feces Urine Uncontaminated Energy Nutrients We Need an Integrated Perspective on Sanitation - Beneficiation Is the revenue big enough to fund the implementation of sanitation? Is beneficiation financial only viable with existing infrastructure?
  5. 5. Benefits from Wastewater Fertilizer from Feces BiogasGreywater Reuse Humanur/Sludge ≈5.7 $/capita/yr ≈2.8-8.8 $/capita/yr ≈2.5 $/capita/yr ≈8.2-9.3 $/capita/yr
  6. 6. Financial Cost-Benefit Analysis Costs Expenditure Potential Revenue Financial assessment – costs and revenues as the financial performance for households or business
  7. 7. Sludge Loan $180 Sanitation Co. Farmers $180 Cost Transp. 8 $/hh/yr Cost Proces. 5 $/hh/yr Total Costs 13 $/hh/yr Payback 15 $/hh/yr Total Interest $140 Sanitation as a Business – Rural Malawi Water for People Profit Trans. 9 $/hh/yrBanks Households
  8. 8. Sludge Sanitation Co. Farmers Cost Transp. 8 $/hh/yr Cost Proces. 5 $/hh/yr Total Costs 13 $/hh/yr Households Sanitation as a Business – Rural Malawi Water for People Profit Transp. 9 $/hh/yr 15 $/hh/yr After Payback of Investment Banks
  9. 9. Financial Viability Depends on Development of Resources Prices Cordell & White 2011 Phosphate Price Projections
  10. 10. Billions Less Developed Regions More Developed Regions Durham Advanced Wastewater Treatment Plant Cost Effective within Existing Infrastructure Investment Costs $2,500,000 Finance Costs $550,000 Total Costs $3,050,000 250t/yr *$800 - $1170 $2,5Million O&M Costs Savings $207,500 Income Crystal Green $292,500 Annual Profit $500,000 Return of Investment 6 years
  11. 11. Cost-Effective Compared to Alternative Technologies Investment Costs $102,800 O&M Costs $62,400 Income Product -$18,700 Total Annual Costs $146,500 Disposal Costs $177,100 Total Annual Costs $177,100 LaDePaLandfill Annual Savings $30,600
  12. 12. Quick growing emerging town Importance of Benefits from Wastewater for IUWM ARUA UGANDA
  13. 13. Upgrade existing WW Demand Supply Gap (1000m3/d) UnitCosts($/m3) NewGW Surface Water (long distance transfer) DEWATS & Greywater Reuse Unit costs without revenueUnit costs with revenue Revenue Biogas Revenues from Wastewater can make the Difference
  14. 14. The Economic Benefits of Integrated Urban Water Management Is the revenue big enough to fund the implementation of sanitation? Is beneficiation financial only viable with existing infrastructure?
  15. 15. Technology Selection Building Effective Institutions Stakeholder Engagement Economics and Finance GWP IUWM IUWM Diagnostics Water Balance Model Training Program for IUWM Needs to Consider Economics and Finance
  16. 16. • Revenue analysis frameworks • Planning and economic regulatory tools • Economic assumptions and evaluations that influence project selection • Innovative capital acquisition approaches Training Program for IUWM Needs to Consider Economics and Finance Economics and Finance
  17. 17. jocheneckart@mail.usf.edu Thank You Global Challenges, Global Research, Global Solutions

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