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

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. ~2.5 Billion without
improved sanitation
~780 Million without
improved water supply
Bad News:
Sanitation is Lacking Behind

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. 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. 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. Financial Cost-Benefit Analysis
Costs
Expenditure
Potential
Revenue
Financial assessment – costs and revenues
as the financial performance for households
or business

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. 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. Financial Viability Depends on
Development of Resources Prices
Cordell & White 2011
Phosphate Price
Projections

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. 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. Quick growing
emerging town
Importance of Benefits from
Wastewater for IUWM
ARUA
UGANDA

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. 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. 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. • 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. jocheneckart@mail.usf.edu
Thank You
Global Challenges, Global Research, Global Solutions