Public-Private Partnership for Affordable Fecal Sludge Management
Summary
Dhaka has witnessed exponential population growth leading to rapid unregulated urbanization. Approximately 80% of households rely on on-site sanitation facilities in the absence of a centralized sewerage connection, resulting in untreated waste being discharged into communities. SWEEP, a public-private partnership launched by Water & Sanitation for the Urban Poor and UNICEF, brings together government actors and small and medium enterprises to deliver a fecal sludge management service.
As a megacity, Dhaka's urban area has grown exponentially to absorb the 22.5 million residents (MacroTrends, 2022). Rapid population growth has led to unplanned and unregulated urbanization, contributing to sewerage connections for just 20% of households, and the remainder relies on on-site sanitation facilities (i.e. septic tanks, pit latrines) (WSUP, 2017). Due to the limited fecal sludge management (FSM) chain, almost all waste is discharged untreated into communities via surface water and/or the stormwater network to the detriment of human and environmental health (WSUP, 2017).
Intervention
SWEEP was launched in 2015 to provide an efficient waste collection service for Dhaka's growing urban population (WSUP, 2017). SWEEP is a lease-based public-private partnership (PPP) established by Water & Sanitation for the Urban Poor (WSUP) with support from UNICEF. It brings together small-and medium-enterprises (SMEs) and local authorities (i.e., Dhaka Water and Sewerage Authority [DWASA]) to provide septic tank emptying services to city residents (Rahman, 2022).
This model allows multiple SMEs to operate under the SWEEP brand in a competitive environment (WSUP, 2017). WSUP oversees a competitive bidding process that ensures the strongest sanitation entrepreneur is chosen to deliver services to customers (WSUP, 2017). To convince SMEs to provide services to low-income residents, WSUP presented a strong business case on the feasibility of balancing low-income customers with running a successful and profitable business, overcoming the commonly-held perception that mechanical emptying businesses that focus on a low-income customer base will not be viable (WSUP, 2017). Through the PPP, SMEs can lease equipment, such as vacuum tankers, from the public sector, which reduces the risk to sanitation market entry through lower start-up costs, greater flexibility, and faster returns on investment (WSUP, 2017; Rahman, 2022). Simultaneously, DWASA services customers in a scalable manner across the city while remaining flexible and maintaining ownership of its assets (WSUP, 2017).
While SWEEP targets mid to higher-income residents and commercial institutions, 30% of its customer base is from low-income communities (Rahman, 2022). SWEEP customers pay tariffs according to a variable pricing structure, with low-income customers paying USD 6-7.50/m 3 and mid/high income and commercial customers paying USD 10-15/m 3 (WSUP, 2017). SWEEP's profits are sustained by focusing on mid/high income and commercial customers (Rahman, 2022). If necessary, DWASA could eventually introduce a fixed price; however, SWEEP is a relatively new service with limited enforcement ability, so this action is not recommended (WSUP, 2017).
Funding for SWEEP comes from multilateral organizations, foundations, and international development banks. WSUP also provides non-financial support and services to SMEs and DWASA to ensure SWEEP's success: SMEs were provided technical and business management training to improve their ability to deliver services safely and profitably. At the same time, DWASA received support to develop a promotional and marketing strategy for SWEEP (WSUP, 2017).
Challenges
Historically, FSM in Dhaka has been hindered by a lack of clarity around the institutional responsibility for on-site sanitation. DWASA controls sewerage and drainage on major streets, while the Dhaka North and South City Corporations manage solid waste and drainage in lanes (WSUP, 2017). The unclear responsibility for sanitation has contributed to the rapid unplanned urbanization and inadequate or non-existent infrastructure for much of the population. Continued efforts to improve the regulatory and enforcement capacity of the government through, for instance, the Institutional and Regulatory Framework on FSM (passed into law in May 2017) will support sanitation services for urban residents (Rahman, 2022). However, the unclear responsibility for sanitation between the Dhaka Water and Sewerage Authority and the Dhaka North and South City Corporations has limited infrastructure development and constrained regulatory and enforcement capacity, representing a key area for future improvement.
Outcomes
SWEEP has become Bangladesh's first financially-viable sanitation waste collection service that reaches the poorest households (Rahman, 2022). Since 2015, the SWEEP model has become operational across the cities of Dhaka, Chattogram, Rangpur, and five other municipalities in Bangladesh. Some 13 enterprises are part of SWEEP, serving more than 2.6 million residents, including 800,000 low-income residents, with an anticipated goal of reaching 15 million people by 2030 (Rahman, 2022). SWEEP has prevented around 30 million liters of human waste from polluting the environment (Rahman, 2022). More broadly, political support for sanitation services in Dhaka, and Bangladesh has opened the market for SMEs after proving the SWEEP model profitable (Hasan, 2019; Rahman, 2022).
Enabling the private sector to participate in Dhaka's sanitation market via SWEEP, a public-private partnership, has increased access to safe, efficient waste collection services for urban residents. While SWEEP has become financially viable and prevented millions of liters of wastewater from entering the environment, continued efforts to improve the institutional responsibility for sanitation and waste management within the government will ensure the growing population has access to safe and affordable waste collection.
References
Public-Private Partnership for Affordable Fecal Sludge Management
Summary
Dhaka has witnessed exponential population growth leading to rapid unregulated urbanization. Approximately 80% of households rely on on-site sanitation facilities in the absence of a centralized sewerage connection, resulting in untreated waste being discharged into communities. SWEEP, a public-private partnership launched by Water & Sanitation for the Urban Poor and UNICEF, brings together government actors and small and medium enterprises to deliver a fecal sludge management service.
As a megacity, Dhaka's urban area has grown exponentially to absorb the 22.5 million residents (MacroTrends, 2022). Rapid population growth has led to unplanned and unregulated urbanization, contributing to sewerage connections for just 20% of households, and the remainder relies on on-site sanitation facilities (i.e. septic tanks, pit latrines) (WSUP, 2017). Due to the limited fecal sludge management (FSM) chain, almost all waste is discharged untreated into communities via surface water and/or the stormwater network to the detriment of human and environmental health (WSUP, 2017).
Issue
Intervention
SWEEP was launched in 2015 to provide an efficient waste collection service for Dhaka's growing urban population (WSUP, 2017). SWEEP is a lease-based public-private partnership (PPP) established by Water & Sanitation for the Urban Poor (WSUP) with support from UNICEF. It brings together small-and medium-enterprises (SMEs) and local authorities (i.e., Dhaka Water and Sewerage Authority [DWASA]) to provide septic tank emptying services to city residents (Rahman, 2022).
This model allows multiple SMEs to operate under the SWEEP brand in a competitive environment (WSUP, 2017). WSUP oversees a competitive bidding process that ensures the strongest sanitation entrepreneur is chosen to deliver services to customers (WSUP, 2017). To convince SMEs to provide services to low-income residents, WSUP presented a strong business case on the feasibility of balancing low-income customers with running a successful and profitable business, overcoming the commonly-held perception that mechanical emptying businesses that focus on a low-income customer base will not be viable (WSUP, 2017). Through the PPP, SMEs can lease equipment, such as vacuum tankers, from the public sector, which reduces the risk to sanitation market entry through lower start-up costs, greater flexibility, and faster returns on investment (WSUP, 2017; Rahman, 2022). Simultaneously, DWASA services customers in a scalable manner across the city while remaining flexible and maintaining ownership of its assets (WSUP, 2017).
While SWEEP targets mid to higher-income residents and commercial institutions, 30% of its customer base is from low-income communities (Rahman, 2022). SWEEP customers pay tariffs according to a variable pricing structure, with low-income customers paying USD 6-7.50/m 3 and mid/high income and commercial customers paying USD 10-15/m 3 (WSUP, 2017). SWEEP's profits are sustained by focusing on mid/high income and commercial customers (Rahman, 2022). If necessary, DWASA could eventually introduce a fixed price; however, SWEEP is a relatively new service with limited enforcement ability, so this action is not recommended (WSUP, 2017).
Funding for SWEEP comes from multilateral organizations, foundations, and international development banks. WSUP also provides non-financial support and services to SMEs and DWASA to ensure SWEEP's success: SMEs were provided technical and business management training to improve their ability to deliver services safely and profitably. At the same time, DWASA received support to develop a promotional and marketing strategy for SWEEP (WSUP, 2017).
Challenges
Historically, FSM in Dhaka has been hindered by a lack of clarity around the institutional responsibility for on-site sanitation. DWASA controls sewerage and drainage on major streets, while the Dhaka North and South City Corporations manage solid waste and drainage in lanes (WSUP, 2017). The unclear responsibility for sanitation has contributed to the rapid unplanned urbanization and inadequate or non-existent infrastructure for much of the population. Continued efforts to improve the regulatory and enforcement capacity of the government through, for instance, the Institutional and Regulatory Framework on FSM (passed into law in May 2017) will support sanitation services for urban residents (Rahman, 2022). However, the unclear responsibility for sanitation between the Dhaka Water and Sewerage Authority and the Dhaka North and South City Corporations has limited infrastructure development and constrained regulatory and enforcement capacity, representing a key area for future improvement.
Outcomes
SWEEP has become Bangladesh's first financially-viable sanitation waste collection service that reaches the poorest households (Rahman, 2022). Since 2015, the SWEEP model has become operational across the cities of Dhaka, Chattogram, Rangpur, and five other municipalities in Bangladesh. Some 13 enterprises are part of SWEEP, serving more than 2.6 million residents, including 800,000 low-income residents, with an anticipated goal of reaching 15 million people by 2030 (Rahman, 2022). SWEEP has prevented around 30 million liters of human waste from polluting the environment (Rahman, 2022). More broadly, political support for sanitation services in Dhaka, and Bangladesh has opened the market for SMEs after proving the SWEEP model profitable (Hasan, 2019; Rahman, 2022).
Enabling the private sector to participate in Dhaka's sanitation market via SWEEP, a public-private partnership, has increased access to safe, efficient waste collection services for urban residents. While SWEEP has become financially viable and prevented millions of liters of wastewater from entering the environment, continued efforts to improve the institutional responsibility for sanitation and waste management within the government will ensure the growing population has access to safe and affordable waste collection.
Issues |
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Water Pollution and Contamination |
Solutions |
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Wastewater Management & Reuse |
References
Dhaka, Bangladesh Metro Area Population 1950-2022. MacroTrends. (2022). Retrieved June 5, 2022, from https://www.macrotrends.net/cities/20119/dhaka/population#:~:text=The%20current%20metro%20area%20population,a%203.56%25%20increase%20from%202019.
From pilot project to emerging sanitation service. Water & Sanitation for the Urban Poor (WSUP). (2017, May). Retrieved May 7, 2022, from https://www.wsup.com/insights/from-pilot-project-to-emerging-sanitation-service/
Hasan, A. (2019, December 11). How a sanitation waste partnership is transforming cities in Bangladesh. Business Fights Poverty. Retrieved May 7, 2022, from https://businessfightspoverty.org/how-a-sanitation-waste-partnership-is-transforming-cities-in-bangladesh/
Iyer, H. (2016). Case study of mumbai: Decentralised solid waste management. Procedia Environmental Sciences, 35, 101–109. https://doi.org/10.1016/j.proenv.2016.07.054
Mohan, G., Sinha, U. K., & Lal, M. (2016). Managing of solid waste through public private partnership model. Procedia Environmental Sciences, 35, 158–168. https://doi.org/10.1016/j.proenv.2016.07.066
Rahman, H. (2022, February 16). Making sanitation everyone's business. Skoll. Retrieved May 7, 2022, from https://skoll.org/2022/02/16/making-sanitation-everyones-business/
SWEEP: Turning challenges into opportunities for scale in Bangladesh. Aqua for All. (2021, June 15). Retrieved May 7, 2022, from https://aquaforall.org/news/sweep-turning-challenges-into-opportunities-for-scale-in-bangladesh/
Transforming the markets for emptying toilets in Bangladesh. Water & Sanitation for the Urban Poor (WSUP). (2017, October 6). Retrieved May 7, 2022, from https://www.wsup.com/blog/transforming-the-markets-for-emptying-toilets-in-bangladesh/
Waste. PPP Knowledge Lab. (2019, December 20). Retrieved June 5, 2022, from https://pppknowledgelab.org/sectors/waste#introduction