Asia: Water Opportunity Workshop

Transcription

1 Business Opportunities in Water & Wastewater in Vietnam Asia: Water Opportunity Workshop Nguyen Dang Anh Thi Consultant Energy, Environment & Sustainability 15 th September 2017

2 CONTENTS I. Vietnam: key facts II. Water & wastewater market size III. Typical list of planning projects IV. Water sector funding sources in Vietnam V. IFC Resource Efficiency Program

3 THE SPEAKER: Nguyen Dang Anh Thi 18+ years working in Environmental Technology & Management, Renewable Energy, Resource Efficiency, Clean Technology, Sustainability, Public Private Partnerships (PPP) and Corporate Social Responsibility (CSR). Project development and management, project financing, investment management in infrastructure and renewable resources sectors. Strategic, technical, commercial, and financial advisory services as well as oversee deal sourcing, structuring, negotiating and executing investment deals in renewable resources. Consultant at IFC, USAID, UNIDO, SNV, GIZ, Indochina Capital Speaker at high level international conferences: Globe2016, APEC Energy Efficiency Forum 2016, Green Growth & Business Forum 2016 (Singapore), Asia Water 2016, Asia Clean Energy Forum 2015, Asia Energy Security Summit 2015, Global Green Hub Korea 2012 (South Korea)

4 VIETNAM: KEY FACTS Area (km 2 ) 331,210 (million, 2014) Total (Source: GSO, 2016) (63 cities & provinces) Ho Chi Minh 7.98 Ha Noi 7.09 Hai Phong 1.95 Can Tho 1.24 Da Nang 1.00 GDP: US$198.8 billion (2015) 5 largest cities: 21% of population 37% of GDP

5 WATER SUPPLY Total production: 6.7 million m 3 /day by 420 water plants 500 water supply systems Average NRW: 25% (2015) ~ US$200 million/year! Urban Coverage (108 Cities and Towns): Piped water = 81.6% (2015) Average Tariff: $0.32 (2015) (Source: MOC, 2015)

6 Water Supply: US$6 Billion Market Opportunity until 2020 Doubling of Capacity Required by 2020 Area yr CAGR HCMC % Hanoi % Others Major Cities % Totals: % According to the World Bank, in the next seven years to 2020, Vietnam needs approximately US$6 billion of investments in the water supply sector to meet national targets and world standards. In Hanoi, the investment needs are estimated to be US$2.4 billion US$2.0 billion is required for Ho Chi Minh City Capacity Required (million m 3 /day) Remaining $1.6 billion is for other cities such as Danang, Hai Phong, Can Tho, Nha Trang for the next 7 years Represents >70% of market!

7 Business opportunities in Non revenue Water Description Total cost (US$ million) Proposed allocation ODA State Awareness raising of communities Capacity building for WSCs & local government NRW projects Program management (Source: ADB, 2011) Grand total CITY/PROVINCE NRW CITY/PROVINCE NRW Ha Noi 23% Da Nang 19% Hai Phong 15% Binh Duong 9% Hai Duong 17% Ba Rịa Vung Tau 15% Thua Thien Hue 13% Ho Chi Minh 32%

8 Drainage and sewerage system: Wastewater - Combined sewerage system (around 92%), mainly in the big city. - Coverage ratio of wastewater service ~ 60% - Old piping system, need to be upgraded or replaced by new one. - Drainage and urban flooding (Heavy rain, sea level, climate change) - Flooding zones are still existing in almost cities, such as Hanoi, Ho Chi Minh city and other cities in coastal areas. Sewerage and wastewater treatment: - WWTP: 33 WWTPs are under operation with a total capacity of m3/day; less than 15% wastewater is treated - More than 40 WWTPs are under construction with a total capacity of m3/day. (Source: Tran Thi Thao Huong, MOC, 2016)

9 Wastewater: US$10 Billion Market Opportunity until : 5.7 billion US$. 1.4 billion US$ in Cau River Basin. 4.3 billion US$ in Nhue-Day River Basin 21 municipal wastewater treatment plants with combined capacity of 1.2 million m 3 /day needed until 2020 in Ha Noi. 12 drainage basins and 12 municipal wastewater treatment plants with combined capacity of 2.9 million m 3 /day in HCMC. Estimated 4 billion US$ needed until Source: WHO/UNICEF/MOH. Water And Sanitation Sector Assessment Report Vietnam 2011 Master plan of Ho Chi Minh City. 13 municipal wastewater treatment plants with combined capacity of 188,000 m 3 /day in Mekong Delta. 17 industrial wastewater treatment plants with combined capacity of 240,000 m 3 /day.

10 Planning wastewater projects in Ho Chi Minh City No. Basin Planned capacity 1 Tau Hu Ben Nghe Doi Te Canal Binh Hung, phase 1: 141,000 m 3 /day (completed May 2009 JICA funded) Phase 2: 371,000 m 3 /day (completed 2011 JICA funded) 2 Nhieu Loc Thi Nghe Cat Lai, 500,000 m 3 /day (under development WB funded) 3 Tan Hoa Lo Gom Tan Nhut, 300,000 m 3 /day (under development private finance) 4 Tham Luong Ben Cat An Phu Dong, phase 1: 131,000 m 3 /day (under construction private finance) Phase 2: m 3 /day 5 West Sai Gon m 3 /day (Tan Phu District) 6 South Sai Gon 170,000 m 3 /day (District 7) 7 North Sai Gon 1 170,000 m 3 /day (Thu Duc) 8 North Sai Gon 2 130,000 m 3 /day (District 9) 9 East Sai Gon 350,000 m 3 /day (District 2) 10 Binh Tan 180,000 m 3 /day (Binh Tan) 11 Cau Dua Canal 100,000 m 3 /day (District 12) 12 North West 130,000 m 3 /day (Hoc Mon) Total 2, m 3 /day

11 Planning wastewater projects in Ha Noi No. Name Until 2020 (m 3 /day) Until 2030 (m 3 /day) 1 Yen Xa 270, ,000 2 Phu Do 84,000 84,000 3 Western Nhue River 58,000 89,000 4 Phu Thuong 15,000 21,000 5 Ngu Hiep 21,000 34,000 6 Vinh Ninh 21,000 33,000 7 Dai Ang 21,000 44,000 8 Hoa Lac 1 84, ,000 9 Hoa Lac 2 65, , Xuan Mai 58, , Son Tay 50,000 75, Phu Xuyen 33,000 52, Dai Thinh 15,000 19, Tien Phong 36,000 48, North Thang Long (completed) 84, , Son Du 76, , Co Loa 48,000 61, Soc Son 21,000 37, Dong Xuan 1 23,000 41, Dong Xuan 2 22,000 38, Duc Tu 22,000 29,000

12 Planning water projects in Mekong Delta No Name Until 2020 (m 3 /day) Service coverage 1 HauRiver 1 Phase I: m 3 /day (2020) Phase II: m 3 /day (2030) Can Tho, Soc Trang (+ Ben Tre, Tra Vinh) 2 HauRiver 2 Phase I: m 3 /day (2020) Phase II: m 3 /day (2030) Can Tho, An Giang, Kien Giang, Ca Mau (+Hau Giang, 3 HauRiver 3 Phase I: m 3 /day (2020) Phase II: m 3 /day (2030) Bac Lieu) An Giang, Kien Giang

13 Water sector funding sources in Vietnam

14 Business Opportunities Financing: Private: Concession, BOT/BT/BTO/BOO PPP: High potential Public: ODA become limited Financial services: Investment Insurance Advisory Technical services: EPC Consulting works Legal services

15 Thank you for your attention! Contact: NGUYEN DANG ANH THI, M. Eng