Public-Private Partnership (PPP) for Wastewater Reclamation
Summary
Through a public-private partnership, Durban, South Africa, implemented a wastewater reclamation project to reuse municipal wastewater for industrial purposes, thereby resulting in numerous environmental, economic, and social benefits for the municipality.
Faced with a sewage capacity constraint and a wastewater and sanitation infrastructure network that could not cope with a growing population, in the 1990s, the city of Durban had to explore alternative options for water resources management (World Bank, 2018).
Intervention
The Durban city government formed a public-private partnership (PPP) with Veolia to build a wastewater treatment plant capable of treating municipal wastewaters to the degree deemed acceptable for industrial purposes (World Bank, 2018). The city chose to focus its efforts on recycling wastewater in the city's Southern Wastewater Treatment Works (SWTW) instead of increasing the plant's existing marine outfall pipeline capacity, thereby making better use of water resources within the city (World Bank, 2018).
Durban decided to recycle the city's wastewater for industrial purposes in the late 1990s. Mondi, a paper producer located 200 meters from SWTW, and SAPREF (a nearby oil refinery also ), expressed interest in purchasing the recycled wastewater at a discounted rate (World Bank, 2018). However, the existing infrastructure at the treatment plant needed to be upgraded; given the complexity, cost, and scale of the project, the municipality opted to implement the project as a PPP (World Bank, 2018). After an international bidding process, a multinational corporation, Veolia, was chosen to lead the project, which encompassed financing, designing, constructing, and operating the tertiary wastewater treatment plant at SWTW (World Bank, 2018). The corporation was granted a 20-year concession contract (World Bank, 2018).
SWTW treats 10% of Durban's municipal wastewater and pipes the treated water to nearby industrial users (Mondi and SAPREF), thereby ensuring a constant demand for treated wastewater and a constant revenue stream for the treatment plant (World Bank, 2018). The added revenue from sales of treated wastewater covers nearly all SWTW's operation and maintenance expenses (World Bank, 2018).
Presently, Durban's water recycling project is still active and serves a central role in the city's water resource management strategy (eThekwini Municipality, n.d.). Veolia's 20-year concession is set to expire in 2021 (World Bank, 2018).
Challenges
The success of Durban's PPP model for wastewater reclamation model might be its own greatest challenge. That is to say, the highly successful model may attract new industrial users, which could result in competition over a finite amount of wastewater resources. Another challenge may be contract renewal, as it is unclear what the city (and SWTW) plans to do when Veolia's 20-year concession expires in 2021. Finally, a third potential challenge may be financing infrastructure upgrades, which will eventually be necessary to maintain the plant's efficiency and commercial viability.
Outcomes
Durban's water recycling program has resulted in numerous economic, environmental, and social benefits for residents and business owners in the municipality. By recycling wastewater for industrial use, the city can mitigate conflicts between industrial users and residents: more potable water is allocated for residents while simultaneously saving industrial users' money by providing recycled wastewater at a lower price than first-use potable water (Veolia, n.d.). In addition, some of the profits from the wastewater treatment are used to finance water access projects for the city's socioeconomically disadvantaged residents (Veolia, n.d.).
Approximately 98% of the water entering Durban's SWTW plant is recycled (Veolia, n.d.). By recycling wastewater for industrial use, the municipality has been able to reduce the demand on potable water sources, thereby allowing for the allocation of more water resources for potable consumption. Specifically, the wastewater reclamation plant has freed up an additional 47,000 cubic meters of potable water, amounting to sufficient drinking water supplies for approximately 300,000 people in the municipality (Veolia, n.d.; eThekwini Municipality, n.d.). Furthermore, the city's industrial partners (i.e., those that buy the reclaimed wastewater at a reduced cost) save approximately five million euros annually by buying the reclaimed wastewater and have a secure, reliable source of water for their operations (Veolia, n.d.; World Bank, 2018). Finally, the recycled water scheme has resulted in a 10% reduction of wastewater discharged into the ocean, thereby also mitigating pollution impacts (World Bank, 2018).
Ultimately, Durban's decision to recycle its wastewater for industrial purposes proved to be a fruitful partnership for all stakeholders, both public and private, as it provided a sustainable, cost-effective way of turning wastewater into a valuable resource.
References
Public-Private Partnership (PPP) for Wastewater Reclamation
Summary
Through a public-private partnership, Durban, South Africa, implemented a wastewater reclamation project to reuse municipal wastewater for industrial purposes, thereby resulting in numerous environmental, economic, and social benefits for the municipality.
Faced with a sewage capacity constraint and a wastewater and sanitation infrastructure network that could not cope with a growing population, in the 1990s, the city of Durban had to explore alternative options for water resources management (World Bank, 2018).
Issue
Intervention
The Durban city government formed a public-private partnership (PPP) with Veolia to build a wastewater treatment plant capable of treating municipal wastewaters to the degree deemed acceptable for industrial purposes (World Bank, 2018). The city chose to focus its efforts on recycling wastewater in the city's Southern Wastewater Treatment Works (SWTW) instead of increasing the plant's existing marine outfall pipeline capacity, thereby making better use of water resources within the city (World Bank, 2018).
Durban decided to recycle the city's wastewater for industrial purposes in the late 1990s. Mondi, a paper producer located 200 meters from SWTW, and SAPREF (a nearby oil refinery also ), expressed interest in purchasing the recycled wastewater at a discounted rate (World Bank, 2018). However, the existing infrastructure at the treatment plant needed to be upgraded; given the complexity, cost, and scale of the project, the municipality opted to implement the project as a PPP (World Bank, 2018). After an international bidding process, a multinational corporation, Veolia, was chosen to lead the project, which encompassed financing, designing, constructing, and operating the tertiary wastewater treatment plant at SWTW (World Bank, 2018). The corporation was granted a 20-year concession contract (World Bank, 2018).
SWTW treats 10% of Durban's municipal wastewater and pipes the treated water to nearby industrial users (Mondi and SAPREF), thereby ensuring a constant demand for treated wastewater and a constant revenue stream for the treatment plant (World Bank, 2018). The added revenue from sales of treated wastewater covers nearly all SWTW's operation and maintenance expenses (World Bank, 2018).
Presently, Durban's water recycling project is still active and serves a central role in the city's water resource management strategy (eThekwini Municipality, n.d.). Veolia's 20-year concession is set to expire in 2021 (World Bank, 2018).
Challenges
The success of Durban's PPP model for wastewater reclamation model might be its own greatest challenge. That is to say, the highly successful model may attract new industrial users, which could result in competition over a finite amount of wastewater resources. Another challenge may be contract renewal, as it is unclear what the city (and SWTW) plans to do when Veolia's 20-year concession expires in 2021. Finally, a third potential challenge may be financing infrastructure upgrades, which will eventually be necessary to maintain the plant's efficiency and commercial viability.
Outcomes
Durban's water recycling program has resulted in numerous economic, environmental, and social benefits for residents and business owners in the municipality. By recycling wastewater for industrial use, the city can mitigate conflicts between industrial users and residents: more potable water is allocated for residents while simultaneously saving industrial users' money by providing recycled wastewater at a lower price than first-use potable water (Veolia, n.d.). In addition, some of the profits from the wastewater treatment are used to finance water access projects for the city's socioeconomically disadvantaged residents (Veolia, n.d.).
Approximately 98% of the water entering Durban's SWTW plant is recycled (Veolia, n.d.). By recycling wastewater for industrial use, the municipality has been able to reduce the demand on potable water sources, thereby allowing for the allocation of more water resources for potable consumption. Specifically, the wastewater reclamation plant has freed up an additional 47,000 cubic meters of potable water, amounting to sufficient drinking water supplies for approximately 300,000 people in the municipality (Veolia, n.d.; eThekwini Municipality, n.d.). Furthermore, the city's industrial partners (i.e., those that buy the reclaimed wastewater at a reduced cost) save approximately five million euros annually by buying the reclaimed wastewater and have a secure, reliable source of water for their operations (Veolia, n.d.; World Bank, 2018). Finally, the recycled water scheme has resulted in a 10% reduction of wastewater discharged into the ocean, thereby also mitigating pollution impacts (World Bank, 2018).
Ultimately, Durban's decision to recycle its wastewater for industrial purposes proved to be a fruitful partnership for all stakeholders, both public and private, as it provided a sustainable, cost-effective way of turning wastewater into a valuable resource.
Issues |
|---|
Water Infrastructure and Technology |
Solutions |
|---|
Wastewater Management & Reuse |
References
eThekwini Municipality. (n.d.). The Durban Water Recycling Project. Retrieved November 28, 2020, from http://www.durban.gov.za/City_Services/water_sanitation/Services/Pages/durban-recyling.aspx
Veolia (n.d.). Circular cities: Creating local loops to generate local value. Retrieved November 28, 2020, from https://www.veolia.com/en/market/municipal/circular-economy-cities
Veolia (n.d.). In Durban, industries run on recycled water. Retrieved November 28, 2020, from https://www.veolia.com/en/newsroom/thematic-reports/veolia-committed-climate/our-climate-solutions//durban-wastewater-recycling-industries
World Bank. (2018). Wastewater: From Waste to Resource; The Case of Durban, South Africa. Retrieved November 28, 2020, from http://documents1.worldbank.org/curated/en/770121521179248609/pdf/124334-19-6-2018-13-8-54-W.pdfv