Towards socio -economic and environmental sustainability

Financiado por Co-implementado por Co-ejecutado por

Towards socio-economic and environmental sustainability of reuse: Business modelsIng. Gustavo Heredia16/9/2021

+

2

1. Enter the registration survey through the link found in the chat:

https://app.wisembly.com/crewplus

2. Enter the login password: Academy2

3. Fill the registration survey

Steps to complete the registration survey

3

1. How are treatment costs determined?2. How to ensure the socio-economic and environmental

sustainability of a treatment and reuse system?

Presentation structure+

Hacia una sostenibilidad socioeconómica y ambiental del reúso: modelos de negocio16-9-2021

4

Cost determination• Financial modelling• Calculation tools

5

+ Net Present Value (NPV)

+ Annual Equivalente Cost (AEC)

Financial modeling

6

Present value of a cash flow in time

Net Present Value

0 1 2 3 4 5 6 7 8 9 10Period

-100.000

-20.000 PV = -300.000

NPV = ?i = 5%

7

Interactive exercise

Annual Equivalent Cost (AEC)

8

Cost of treatment and reuse

• Treatment plant components

• Reuse system components

• Pumping

• Transport/distribution

CAPEX

• Wages/labor costs

• Energy

• Consumables/inputs/chemicals

• Routine maintenance

• Rentals

OPEX

Treatment costs

10

WW Treatment cost examplesPer-capita investment

73 7565

103

57 5645 45

0

20

40

60

80

100

120

In situ Pequeñas Medianas Grandes

Cost

o de

inve

rsió

n [U

SD/c

apita

]

Heredia, 2021

11

WW Treatment cost examplesAnnual Equivalent Cost (AEC)

Heredia, 2021

5 5

8

12

0

2

4

6

8

10

12

14

Tratamiento primario o secundario básico Tratamiento secundario avanzado oterciario

CAE

[USD

/cap

ita*a

ño]

12

WW Treatment cost examplesCost per m3 of treated water

0.12

0.18

0.22

0.36

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

Tratamiento primario o secundario básico Tratamiento secundario avanzado oterciario

Cost

o to

tal t

rata

mie

nto

[USD

/m3]

Heredia, 2021

13

WW Treatment cost examplesCosts in relation to wáter-sanitation total costs

73 7565

103

57 5645 45

0

20

40

60

80

100

120

In situ Pequeñas Medianas Grandes

Cost

o de

inve

rsió

n [U

SD/c

apita

]

60

114

155

0

50

100

150

200

250

300

350

Cost

o de

inve

rsió

n [U

SD/c

apita

]

Sistema de agua potable

Alcantarillado sanitario

Planta de tratamiento

Heredia, 2021

14

Interface/Containment

Collection/transport Treatment Disposal/

reuse

Costs along the sanitation value chain

15

Online tool for santitation costing and planning

+Http://cwiscostingtool.com

CWIS Costing & planning tool

20

Socio-economic and environmental sustainability• Costs and benefits of WW treatment• Business models

21

Economic losses associated with poor water and sanitation services

Andersson, et. al. 2020, basado en Hutton 2012

22

Relación costo-beneficio de las intervenciones para lograr acceso universal a un saneamiento mejorado

Andersson, et. al. 2020, basado en Hutton 2012

Drinkingwater

Industrialreuse

Increased water supply

Energía/ Captura CO2

Industrial production

Fish/fuel

Reduction of energy demand

Avoid exploitation

Nutrients Protein for food Reduction of emissions

Reúso para riego

Increase in production

Ethanol

Safe discharge Increase in production

Avoideutrophication

Surface discharge

Avoid over-exploitation

Soil improvement

Environmental flows

Increased reliability

Public health Aquifer recharge

Different value propositions for resource reuse and recovery

Adaptado de Winchelns et al 2015

24

Link in sanitation value chain

Main costs

WW Generation Pre-treatment and stream separation

Collection system Construction, operation and maintenance of collection networks and pumping stations. Control and monitoring.

Treatment Construction, operation and maintenance of treatment plant networks. Control and monitoring.

Additional treatment Construction, operation and maintenance of treatment plant networks. Control and monitoring.

Treated water conveyance Construction and operation of canals, pipelines and storage systems

Reuse Construction, operation and maintenance of irrigation devices, monitoring and identification of water types and potential use

Main costs in reuse systems

Adapted from Adersson et.al. 2020

25

Stakeholder Costs Benefits

Central and state government

Investment capital, fiscal costs of transfers and investments

Avoid large water transfer/transport works

Companies/water utilities

Capital costs andO&M costs of new infrastructure; costs of protecting public health

Savings in treatment costs; additional income

Farmers/beneficiaries of treated water

Reuse restrictions Savings in water costs, continuity in water supply, savings in fertilizers

Principales costos y beneficios financieros del TAR y reúso

Adapted from Adersson et.al. 2020

26

Cost structure vs. revenue stream

CAPEX

Total cost

OPEX

+TarifTaxesTransfersTrade

27

+ Starting date , ending date

+ Initial investment

+ Priority 1: Infrastructure

+ All at once, the bigger the better

+ Long time sustainability

+ Annual equivalent cost (CAPEX + OPEX)

+ Priority 1: Customers

+ Incremental investment/Modular growth

"Project" approach vs. "service" approach

28

Functional management model

Ownershipfunction

TechnicalFunctionO&M

Servicecontract

Servicecontract

Supervision/monitoring

29

Ownershipfunction+ Owns the infrastructure

+ Has a service provision mandate

+ Sustainability over time and asset maintenance

Functional management model

+ Performance monitoring

+ Problem solving

+ Increase of capacity

+ Technical Reports

+ Daily operations

+ Registration and reporting of activities

+ Maintenance of indicators

+ Supply procurement

Technical function

O&M

30

Business model

A business model is defined by the customers it serves, the markets in which it operates, the allies, costs, revenue streams, activities that are carried out, and how added value is created and delivered to the customer.

Osterwalder y Pigneur (2010)

31

Allies

Cost structure Revenue stream

Activities

Resources

Value proposition Customer Relations

Chanels

Market segments

Business model (example)

Classic business model canvas

32

Business model (example)

33

Allies

MunicipalityFarmers' AssociationUniversity

Cost structureSystem AEC 60,000 USD/year (includes CAPEX and OPEX)

Revenue stream40,000 USD/year for irrigation water and20,000 USD/year for sewerage tariff10,000 USD/year state government transfer for environmental protection incentive

Activities

Treatment, monitoring, pumping and conduction of water

Recursos

Sistema de bombeo y conducción

Value proposition

Constant and reliable flow of water for irrigation that allows farmers 2 plantings instead of one

Customer Relations

Agreement between municipality and farmers

Canales

Asociación de regantes

Market segments

Farmers located within 2km of the treatment plant

Business model (example)

Classic business model canvas

34

The session materials:

• Presentation • Recording

Can be found in the CReW+ Academy website

Link: https://academy.gefcrew.org/en/resources

35

1. Enter the evaluation survey through the link found in the chat:

https://app.wisembly.com/crewplus

2. Enter the login password: Academy2

3. Fill the evaluation survey

Steps to complete the evaluation survey

36

+ Andersson et.al., Sanitation, wastewater management and sustainability; from waste

disposal to resource recoveryhttps://www.sei.org/publications/saneamiento-gestion-de-aguas-residuales-y-sostenibilidad-de-la-eliminacion-de-residuos-a-la-recuperacion-de-recursos/

+ CWIS Costing and Planning Toolhttp://www.cwiscostingtool.com

+ Heredia, Saavedra, Rojas, Evaluation of the annual equivalent cost (AEC) of wastewater treatment plants in the municipalities of Cliza and Tolatahttps://www.researchgate.net/publication/338952248_EVALUACION_DEL_COSTO_ANUAL_EQUIVALENTE_DE_LAS_PLANTAS_DE_TRATAMIENTO_DE_AGUAS_RESIDUALES_DE_LOS_MUNICIPIOS_DE_CLIZA_Y_TOLATA

+ Other related documents wastewater treatment and reuse: https://www.researchgate.net/profile/Gustavo-Heredia-3

Reference

37

Gracias

+

Hacia una sostenibilidad socioeconómica y ambiental del reúso: modelos de negocio16-9-2021

Financiado por Co-implementado por Co-ejecutado por

gustavo.heredia.deiters@gmail.com