A Study on BOP Water business for unserved in Sri Lanka

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1 A Study on BOP Water business for unserved in Sri Lanka TOYOTA TSUSHO CORPORATION, Nagoya City Water Works and Sewerage Bureau, Institute of Water and Environment Business Singapore International Water Week 2012, Side Event, A Road Map from Marseille to Teague via Singapore for BOP Business on Water, 04 th July, 2012

2 Objective and Study scheme Water service as a piped water supply is industrialized as BOP business in the unserved area in Sri Lanka. The water supply service using gravity flow and slow sand filtration, which are cheaper in running cost, will be considered. Study Period : March 2011~June 2012 Team member in Public & Private Partnership: TOYOTA TSUSHO CORPORATION Nagoya City Water Works and Sewerage Bureau Institute of Water and Environment Business Shin Nippon Air Technologies Japan Water Forum Life of Water Chubu Forum in Japan NJS Consultants Taisei Corporation

3 Feature of the Study 1. Proposal of economical and simple facilities to supply water for unserved area; (1) Suburban, (2) Rural Town, (3) Mountain Village 2. Funding to construct and maintenance water facilities 3. Effective management by contracting of design, construction, and O&M in a lump 4. Creation of new jobs 5. Initial operation of the facilities, and technical transfer by dispatched Japanese engineers 3

4 Unserved area in the suburban Legend Water Tower Dia. of the Pipe

5 Unserved area in a Rural Town

6 Unserved area in a Mountain Village

7 Ecological Water Purification Unit at Shin Nippon Lanka Contaminated water Raw Water Tanks Upper Flow Roughing Filter Slanted Soil Chamber Slow Sand Filter Drinkable water

8 Ecological Water Purification System for Mountain Area Village Small Dam Mini Hydro Power Supply to Village Control Panel Ecological Water Purification Plant Ultraviolet

9 Project Scheme JICA cooperation Equity Investors Equity Dividend Debt Providers (Include JICA) Loan Payment National Water Supply & Drainage Board Construction Cost O&M Cost Chubu SPC EPC Contractor Construction O & M Water Facilities Water tariff Ownership transfer Customers 9

10 Five basic requirements of BOP business 1) the goods and service which fulfills the needs of a BOP layer is provided at affordable prices, 2) employment is created in a BOP layer and income is brought to it, 3) an educational program is offered in order that a BOP layer may become independent, 4) an incentive is offered in order to urge spontaneous action of a BOP layer and 5) the ownership that a BOP layer owns by itself is indispensable.

11 Interpretation of BOP Business Basic Requirements Basic requirements of a BOP Business Development of products and services based on needs Income Generation Educational Program for Improvement of quality of life Incentive for solving social problems and continuous usage of the new system Creation of sense of ownership Interpretation at our project Environmentally and economically sustainable supply of safe water by affordable price Jobs opportunities in and around waterworks etc. Educational programs for local residents on effective water use Incentives related to raising quality of life Participatory planning of water facilities by communities

12 Conclusion Construction of sustainable Water Supply System Applying not advanced technologies but affordable technologies that are suited for local actualities By applying of overseas investment and financing system of JICA, it is enable to form projects in areas that has lower priority of development Expectations of application to other countries as well as other areas in Sri Lanka