Testing the Implementation Potential of Resource Recovery and Reuse Business Models

Testing the Implementation Potential of Resource Recovery and Reuse Business Models, 2016. CGIAR.

In many developing countries, the sanitation sector is highly subsidized by public sector agencies which has resulted in inadequate and inequitable provision of waste management services. The historical reliance on public sector provision has partly prevented the development of markets in sanitation services, including resource recovery and reuse (RRR).

A paradigm shift in the sanitation sector towards cost recovery is increasingly being supported by many donors pushing for private sector participation and waste-to-wealth programs. This development advocates for a shift from waste ‘treatment for disposal’ to ‘treatment for reuse’ as the latter offers options for business development and cost recovery for the sanitation sector.

Although the potential benefits from waste reuse are apparent, it is becoming increasingly important that potential investors are given sound information on its feasibility and positive return on investments (RoI) be they in monetary or non-monetary (e.g., social or environmental) terms. This guideline presents a detailed methodological framework that can be used for the feasibility assessment of RRR business models in the context of developing countries.

Its purpose is to support public and private sectors as well as investors in determining the potential viability of RRR in a particular location and context. The guideline was developed in the context of four cities (Lima, Bangalore, Kampala and Hanoi) and later in other cities in Ghana and Sri Lanka, which can all be considered as relatively data scarce environments; this influenced data gathering and the eventually suggested methodology.

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