Tag Archives: sewerage

Approaches to Capital Financing and Cost Recovery in Sewerage Schemes Implemented in India

Approaches to Capital Financing and Cost Recovery in Sewerage Schemes Implemented in India: Lessons Learned and Approaches for Future Schemes, 2016. Water and Sanitation Program.

This report aims to highlight some of the successful financial management practices adopted by Urban Local Bodies (ULBs) in India when implementing sewerage schemes. The
findings are presented in two parts – the first part of the report discusses the approach adopted for capital financing of sewerage schemes in the state of Tamil Nadu, and the second part presents the findings from a review of the operational expenditure and revenue generation of various ULBs across the country.

The aim of the report is to share successful capital financing and cost recovery practices adopted by ULBs in India and enable improvement in provisioning of sewerage systems (only where feasible and economically viable, typically only in larger towns with a population greater than 50,000) and ensure availability of sufficient funds for proper Operation and Maintenance (O&M) of the schemes implemented


Financing sanitation in Sub-Saharan Africa

Rwanda, Kigali: more connections to sewerage system planned

Kigali Eco-Toilet. Photo: Eugene Dusingizumuremyi / SuSanA

The capital city of Rwanda has turned a delay in funding into an opportunity to revise its plans so that more areas get connected to a new centralised sewerage system. Construction of a US$ 70 million wastewater treatment plant in Giti Cyinyoni, Nyarugenge District, was due to start in 2012 but has been delayed by one year.

The lack of a centralised sewage system in Kigali (pop. 1 million) has been forcing real estate developers to provide onsite sewerage systems for new housing units. Schools, hospitals and other public buildings are already required by law to have their own sewerage systems. In future all these onsite systems will be connected to the new centralised system.

In 2008, according to a survey, 80% of the people in Kigali still used pit latrines [1]. These have proved to be not only hard to maintain, but also expensive to manage in the long run. That’s why the city council recently passed a bylaw that instructs developers to install flush toilets connected to septic tanks.

[1] Hohne, A., 2011. State and drivers of change of Kigali’s sanitation : a demand perspective : paper presented at the East Africa practioners workshop on pro-poor urban sanitation and hygiene, Laico Umbano Hotel, Kigali, Rwanda, March 29th – 31st 2011 . [online] The Hague, The Netherlands: IRC International Water and Sanitation Centre. Available at: <http://www.irc.nl/page/64586>

Related website: Kigali City – Water and Sanitation Programmes


  • Susan Babijja, City Council reviews sewage management plan, New Times, 26 Oct 2012
  • Rwanda: Kigali sewage system delayed by funds, Rwanda Express /  allAfrica.com, 14 Jun 2012
  • Eric Didier Karinganire, Sewage in Kigali still an issue of concern, Rwanda Focus, 09 Apr 2012

Uruguay: legislation approved to make sewerage connections compulsory

All households in Uruguay must now have a  sewerage connection. Uruguay’s House of Representatives passed a bill making sewerage connections compulsory on 5 July 2011.

The new bill includes provisions to provide subsidies and grants to those who cannot afford a connection, as well as fines for those who fail to comply with the new law.

In the capital Montevideo, the local government will administer the new law, while state water utility OSE will be responsible for the rest of the country.

While improved rural sanitation coverage was estimated to be 99% in 2008 (WHO/UNICEF, 2010), some 50,000 households are still not connected to a sewerage network. In some areas only 15% of households have sewerage connections.

Source: La Republica [in Spanish], 05 Jul 2011

Indonesia: ADB extends US$ 35 million for sanitation improvement in Medan and Yogyakarta

The Asian Development Bank (ADB) is extending a US$ 35 million loan to help Indonesia rehabilitate and expand sanitation facilities in the cities of Medan and Yogyakarta.

Medan, the capital of North Sumatra province, and Yogyakarta, the capital of Yogyakarta province, have a combined population of around 4.5 million people.

The loan will be used to build around 280 communal sanitation facilities in poor areas in the two cities, as well as two wastewater treatment systems for low-cost housing development projects in Medan. Sewerage systems will be rehabilitated and expanded with up to 28,000 additional household connections. The Metropolitan Sanitation Management and Health Project will also provide support to mobilize community involvement in the planning, operation and maintenance of communal facilities, and will ensure women are strongly involved in the process.

“A gender action plan in the project design will ensure women fully participate in the decision-making process for the development of facilities, and that they benefit equally with men from improved communal services,” said Rudolf Frauendorfer in ADB’s Southeast Asia Department.

Sanitation services have steadily improved in Indonesia, but still lag behind many neighboring countries, with partial sewerage coverage only available in a small number of urban centers. Since the Asian financial crisis of 1997-1998, new sanitation investments have been postponed and existing treatment systems have deteriorated due to lack of repair and maintenance. As a result, many of the poor living in informal settlements suffer high rates of diarrhea, skin diseases and other illnesses caused by polluted water and untreated waste.

“This project will sharply reduce pollution of surface and shallow groundwater in the two cities, resulting in improved health and quality of life particularly for women, children and the elderly who suffer the most from unclean environments,” Mr. Frauendorfer said.

The loan is structured to ensure that operating and maintenance spending on revenue-generating services can be fully funded from user tariff income by the middle of 2014, while remaining affordable to low-income communities. Insufficient revenue for service providers and low user charges, which deter private investment in new facilities, have been a major impediment to the expansion of sanitation services.

To complement the loan, ADB will provide a US$ 500,000 grant from its Technical Assistance Special Fund to strengthen the capacity and management capabilities of local governments, utilities and communities involved in providing or overseeing sanitation services. Further technical assistance of US$ 1 million in the form of a grant from the Government of Australia, will be administered by ADB.

The loan has a 25-year term, with a five-year grace period and an interest rate determined in accordance with ADB’s LIBOR-based lending facility. The Government of Indonesia will provide additional funding of US$ 14.2 million, with regional governments committing US$ 13.5 million, and provincial governments almost US$ 500,000, for a total project of about US$ 63.2 million.

The Ministry of Public Works is the executing agency for the project which is expected to be completed around December 2014.

Source: ADB, 20 Jul 2010

Haiti: international aid efforts moving slowly but surely

Sanitation conditions in Haiti are gradually improving thanks to the efforts of aid workers following the earthquake that devastated the capital Port-au-Prince on 12 January 2010. However, progress has been slow and there are many obstacles that still need to be overcome.

As of 31 January 2010, the damage from the earthquake has left 112,405 dead, 196,595 injured and over 11 million people homeless, according to the UN Office for the Coordination of Humanitarian Affairs (OCHA).

The Haitian capital lacks sewerage infrastructure and the earthquake ruptured the city’s water lines. Garbage is also accumulating in the streets which is exacerbating the health risks.

The WASH Cluster is now reaching 500,000 people with 5 litres per person per day, according to the DFID situation report of 2 February 2010. With water provision now adequate, sanitation is the next priority. The cluster reports that 7,000 latrines are needed. A distribution plan for 1,169 latrine slabs has been agreed with partners in Port-au-Prince, Leogane and Jacmel.

UNICEF video on emergency water and sanitation in Haiti

The WASH Cluster Haiti Update of 30 January 2010 reports that 292 latrines have been completed or are under construction across the country, serving a potential 29,000 people assuming 1 latrine serves 100 people. The Sanitation Strategic Working Group composed of the WASH Cluster, UNICEF, Oxfam, Care, World Vision, ACF and ICRC are proposing the use of portable chemical toilets through a joint venture between a local sanitation firm and Armal Inc.

Slow Progress

Action Against Hunger (ACF) is distributing potable water and food, although the recovery process is moving slowly, according to Lucile Grosjean from ACF in Haiti. “There is garbage everywhere,” Grosjean said.

The local government did not allow ACF or any organization to dig trenches in the Haitian capital’s central plaza, the Champs de Mars, said Grosjean. These trenches were to be used to dispose of the accumulating waste and human feces of between 20,000 and 25,000 people which have congregated in the area.

As a result, ACF has started to build above-ground latrines and began digging trenches to install the latrines in the Croix Deprez area, according to Grosjean.

At the same time, International Migration Organization (IOM) is distributing tents, hygiene kits, blankets, jerry cans, plastic sheeting, water bladders and water purifying kits, donated by the US, Japanese and Turkish governments. These efforts are expected to benefit some 26,000 people, IOM reported on its website.

Meanwhile, international aid organization Care is distributing hygiene kits and training survivors to purify contaminated water.

Care representatives are showing people how to use the purifying packets, since the objective is for Haitians to start carrying out the process by themselves.

“We are trying to identify people in neighborhoods or communities and train them so they can then go on to train more people,” the official added.

Care will be distributing PUR packets in the coming weeks together with large buckets where water can be purified. The organization will also provide other items such as soap and sanitary napkins.

During the emergency phase of the earthquake, the International Committee of the Red Cross (ICRC) ensured a round-the-clock supply of water by trucks to Cité Soleil, the poorest area of the capital Port-au-Prince.

Removing the rubble

The UN Development Programme (UNDP) is working to remove rubble and garbage, in an effort to improve general sanitation conditions.

UNDP is currently employing more than 1,000 Haitians to restart economic activity. After the emergency, the organization hired 700 inhabitants to remove rubble and rehabilitate essential social infrastructure, such as street repairs and electricity.

Prior to the earthquake UNDP had 400 employees carrying out an ecological project in Carrefour, a neighborhood located south of Port-au-Prince. Following the earthquake, the workers and trucks from this project started to remove the rubble and clean streets so other trucks carrying aid could go through, the official said.

In spite of the urgency to reorganize capital Port-au-Prince, resources continue to be limited. UNDP estimates that a US$41.3mn donation is needed for early recovery initiatives in Haiti. This is part of a nearly US$600mn flash appeal launched by UNDP on January 15. The organization estimates some US$58.8mn needs to be invested in water, sanitation and hygiene programs.


Using free transport provided by the government, more than 235,000 people have left Port-au-Prince and moved to rural neighborhoods where the effects of the earthquake were not so severe. Some 62,000 have relocated to Artibonite, for example. However, 800,000 people are still living in temporary camps in the capital, OCHA reported.

To avoid the spread of diseases, the government is planning to relocate another 400,000 from Port-au-Prince to new settlements which are being set up. The relocation program will be carried out in the coming weeks.

Next Steps

Haiti declared the search and rescue phase over on 23 January 2010 so international rescue teams are concentrating more on humanitarian aid for those who need it, instead of searching the rubble for survivors.

Multilateral entities such as the World Bank and IDB are already taking steps to waive debts. UK-based charity Oxfam has urged donor countries to have Haiti’s foreign debts cancelled. It called for about US$900mn owed to the UN, the World Bank and countries including the US, France, Canada and Brazil to be written off.

Go the Reliefweb site for latest Haiti earthquake water and sanitation updates.

Source: Indiana Corrales, BNamericas.com [subscription site], 25 Jan 2010 ; OCHA, 31 Jan 2010 ; DFID, 02 Feb 2010 ; ICRC, 29 Jan 2010

India: US$ 7.9 billion needed to provide toilets to everyone

A study by the Asian Development Bank (ADB) estimates that US$ 7.9 billion is needed to provide toilets for all households that currently lack toilets in India. Of that amount, US$ 4.7 billion is needed for rural areas, and US$ 3.2 billion for urban areas [1].

This figure exceeds the National Commission on Macroeconomics and Health (2005) estimate for ensuring universal access to safe drinking water and sanitation.

To connect all urban households lacking underground drainage to sewer systems would cost about U$ 7.7 billion and for rural households, about US$ 25 billion.

Since these financing requirements are so huge, the ADB paper suggests progressive improvement in the types of sanitation solutions. Sewerage systems tend to benefit richer households; hence, some form of capital cost recovery could be considered to finance sewerage-related infrastructure.

The ADB paper also calls for greater attention for the on the disadvantaged – households from the poorest quintile and scheduled tribes – and the states that have consistently underperformed (Orissa, Bihar, and Madhya Pradesh) could help accelerate further progress.

[1] Bonu, S. and Kim, H. (2009). Sanitation in India : progress, differentials, correlates, and challenges. (South Asia occassional paper series : no. 2). Manila, Philippines, Asia Development Bank. ix, 35 p. : 16 fig., 5 tab. ISBN 978-971-561-828-1

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Brazil: Sanitation deficit “shameful” – expert

Nearly 50% of the nearly 200mn inhabitants of Brazil do not have access to sewerage networks, according to sanitation sector experts at a seminar in capital Brasília.

In addition, only a third of the sewage in the country is adequately treated, according to Raul Pinho, president of the institute Trata Brasil, which specializes in basic sanitation. Pinho said it is “shameful” that Brazil is among the most backward nations in the world in this sector, paper Ultimo Segundo reported.

While the government has invested around US$5.7bn in sanitation works during the last three years, different studies from the private sector show that about US$254bn needs to be invested to guarantee sewerage networks for the whole population, the report said.

It is an agenda that goes beyond the present government, because what are missing are long-term policies, compatible with the growth of cities and the population, Pinho said.

Experts that participated at the seminar attributed illnesses such as diarrhoea to the lack of sanitation. This illness is responsible for the annual deaths of nearly 2,500 children under five years in Brazil.

Source: BNamericas. com [subscription site], 22 Oct 2009

Uganda, Kampala: goverment to borrow US$ 52 million for sanitation

Parliamwent has allowed the Government to borrow sh100b [US$ 52 million] for the Kampala Sanitation Program. The funds from the African Development Bank (AfDB) will be used to extend the sewerage network to serve at least 15% [the AfDB project description mentions 30%] of the city population from the current 7.5%, according to the committee on national economy.

The committee explained that funds will be used to rehabilitate and extend the existing 135km of sewerage pipelines in Kampala. Robert Sebunya, who presented the committee report, said: “A total of 30km of new sewer pipes will be laid, 10km unblocked, while 6.7km will be realigned.” He also added that some of the funds will be used to construct and operate the Nakivubo sewerage treatment works and construct a new plant.

The loan, to be managed by the National Water and Sewerage Corporation and KCC, will see the formation of water management units in each division of Kampala.

The committee noted that the improvements would curtail water and sanitation related diseases and contribute to environmental protection of Lake Victoria. MPs, however, expressed concern that due to the poor planning of the city, the sewer line was a waste of resources as it could not be accessed by many citizens.

Opposition leader Ogenga Latigo (FDC) […] advised that more funds be allocated to emptying septic tanks to reduce the spillage into under- ground water. Okello Okello (UPC) demanded that the Ministry of Water and Environment provides a detailed plan of how the money would be spent otherwise, the funds risked being spent in feasibility studies like the rest of the money borrowed by the Government.

Water and environment minister Maria Mutagamba assured the MPs that the money would be put to good use.

Source: Catherine Bekunda and Mary Karugaba, New Vision / allAfrica.com, 04 Oct 2009

Peru: Sedapal to raise water rates on industries that pollute

Peru’s state-owned water and sewerage utility Sedapal, serving capital Lima and neighboring Callao, will raise water rates on companies that pollute beginning in January 2010. The rate hike will apply to companies that dump toxic waste into the sewerage system, which leads to greater deterioration in the network.

The announcement was made by the president of national sanitation authority Sunass, José Salazar. In 2008, Sunass said various industries were increasing the rate of deterioration in the sewerage system, but their rates were the same as domestic customers.

In conjunction with the national industries association (SNI), Sunass has completed the design of the new tariff system which includes rate increases for companies that do not invest in improving their wastewater treatment. In addition, firms that contaminate more will pay more.

Sedapal must now implement the software necessary to start using the new system.

Local development bank Cofide will provide small and medium-sized companies with up to 50% of the investment needed to improve wastewater treatment.

Source: BNamericas.com [subscription site], 30 Sep 2009