Water Reuse Cost Benefit Analysis
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1 Water Reuse Cost Benefit Analysis The Morocco Example Claire Kfouri Water Week 2009
2 Water Availability in 2020 WORLD WATER RESOURCES AT THE BEGINNING OF THE 21ST CENTURY IHP UNESCO, March-2000 Units: 1000 m 3 /capita/y
3 Annual Renewable Resources per capita Australia & New Zealand Latin America & Caribbean North America Europe & Central Asia Sub-Saharan Africa East Asia & Pacific (incl. Japan&Koreas) Western Europe South Asia Middle East & North Africa m^3 / year Making the Most of Scarcity Development Report, The World Bank, 2006
4 Wastewater Treatment and Reuse - MENA Million m 3 /year Regional Overview of Wastewater Management and Reuse in the Eastern Mediterranean Region, WHO, 2005
5 Wastewater Reuse Applications Agricultural Irrigation Landscape Irrigation Aquaculture Industrial Reuse Non-irrigation Urban Uses Environmental & Recreational Uses Groundwater Recharge Indirect/Direct Potable Reuse
6 WWR in Agriculture - Advantages Reduce ground/surface water stress Reduce pollution load on rivers and other receiving surface water bodies Constant, Reliable source of irrigation water Livelihood augmentation and income generation Reduced need for fertilizers Increase crop yields
7 The Problems Upstream infrastructure investment prerequisites Retrofit of irrigation equipment Reuse Myths and Social Acceptability Proximity of demand to supply of treated effluent Chemical Concentrations and Soil Salinization Financial sustainability Enforcing O&M standards and monitoring Competing solutions
8 Are the Benefits of Reuse Worth the Costs and Risks? Is Reuse a Financially Viable Solution to Water Scarcity?
9 The Net Benefit (NPV of Benefits - Costs) of Implementing Wastewater Reuse in Morocco is at least Billion USD ~ 1.62% of GDP (2008)
10 Key Assumptions Over Estimate Costs and Under Estimate Benefits 80% Secondary Wastewater Treatment by % of Treated Wastewater Reused in Agriculture WHO 2006 Reuse Standards Treated Wastewater supplied to Farmers for free Tertiary Treatment (Chlorination + Sand Filtration) applied to all treated wastewater Constant Population Growth (in urban and rural communities) Construction of new facilities to span July/August 2008 Construction materials costs Positive externalities (i.e. positive impacts on health and environment for eg) not included since difficult to quantify
11 Major Costs Calculated CAPEX Secondary treatment plant OPEX Secondary treatment plant CAPEX storage OPEX storage CAPEX conveyance/transmission OPEX conveyance/transmission CAPEX distribution OPEX distribution Cost of groundwater recharge CAPEX/OPEX of Drip Irrigation GOVT UTILITY GOVT UTILITY GOVT UTILITY GOVT UTILITY GOVT FARMERS
12 Major Benefits Calculated Farmer savings from water Farmer savings from fertilizers Farmer Net Earning from Crops Reliability of source Avoided public health outbreaks Revenue from farmers (crop sales) Revenue from landscaping ( golf/ other urban uses) Revenue from Industry FARMER FARMER FARMER FARMER SOCIETY UTILITY UTILITY UTILITY
13 Sample Costs NOT Included Direct Costs Cost of sludge disposal Loss of freshwater sales Public Information campaign Administration cost Financing Costs Indirect Costs Reduced environmental flows Loss of marsh habitat to salinity WWTP Plant location Resource access/social justice Salinity impacts on landscape Increase in groundwater salinity
14 CBA Model Benefits Can be applied to any country/region/project Flexibility of ranges of inputs and outputs Sensitivity Analyses capacity Cross-country comparisons Quantify Incentive to invest in wastewater treatment Refine financial/economic return calculations of individual sanitation projects In combination with willingness to pay surveys, model can be used to guide policy reform (on tariffs for eg) Several layers of complexity based on target audience
15 Conclusions Even under conservative estimates, wastewater reuse can have a significant net positive social benefit Reuse schemes can therefore be not only viable but also profitable! Apply the model to your case!
16 THANK YOU. Eng. Claire Kfouri Water and Sanitation Specialist, MNSSD Co-Authors and Thanks to: Mr. Pier Mantovani Lead Water and Sanitation Specialist, MNSSD & Mr. Manish Kumar Consultant
17 Morocco Surface Water 16 BCM Groundwater 4 BCM Total 20 BCM % Water Mobilized % Agricultural Use 67% 13 BCM 85% 11 BCM Population 34.3 Million Farmer dependance on agriculture 4.34 Million Average Water Consumption/Day 100 L/c/d Potential Wastewater Generated 3.43 BCM Average Wastewater Treated 7% 0.24 BCM Wastewater Treatment Goal by BCM
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