s5a public-private partnerships for innovative wastewater management by uwe gysser (short)

8/6/2019 S5A Public-Private Partnerships for Innovative Wastewater Management by Uwe Gysser (Short)

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PPP for Innovative Wastewater Management

- Success and Lessons Learnt in China

Introduction

Overview of PPP Activities in China

Case 1: BOT - WWTP Nanchang

Case 2: TOT - WWTP Hefei

Lessons Learned and Outlook



2nd ADB – DMC and Partners Sanitation Dialogue, Manila, May 2011 Uwe Gysser 3

PPP Activities in China since 1995

O & M

Branch

Consulting

BOT / TOT

Case Study




BOT, 1.5 years of construction, 20 years operation

€ 38 million (€ 10,2 million BWI)

Project financing by Industrial and Commercial Bank of China

Nanchang Qing Shan Hu Project Co. Ltd. (NQP)

Third Construction & Engineering Co. Ltd of Beijing Urban80 % BWI; 20 % Construction Group

Commissioning Oct 27, 20042009 –capacity extension from 330,000 to the current 500,000m³/day; Smooth operation, whilst meeting the effluent limits

Project type

Investment

Financing

Project company

Partner

Status

Nanchang, China

[[

Treatment of more than 40 % of the wastewater of Nanchang city.Construction and operation of a wastewater treatment plant500.000 m³/day.




Nanchang BOT – Economical and Efficient Low investment through optimization

- Optimized design and construction

- Consistent project mgmt and strict quality control

and ‘cautious’ adaptation to European standards

Low tariff due to low investment

Flexible response to WW treatment demand

- Extension from 330,000 to 500,000 m3 within 7

months incl. negotiation, design and construction

- Capped investment budget secured planning

reliability for Client

Selected Tariffs of Chinese WWTP BOT Projects

-

500

1,000

1,500

2,000

2,500

Capacity

1,000 m3/d

Investment

million RMB

Specific Investment Cost

RMB/m3

WWTP Nanchang BWI

WWTP Wuhan SJT

WWTP Beijing XHM

Comparison of similar WWTPs with

Sludge Digestion and same Effluent

WWTP BOT Tariff in RMB/m3

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

- 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Treatment Capacity

T a r i f f R M B / m 3

BOT Tariff (1B) RMB/m3

BOT Tariff (1A) RMB/m3

Logarithmisch (BOT Tariff (1B) RMB/m3)

Logarithmisch (BOT Tariff (1A) RMB/m3)

BWI Nanchang




Active Cooperation in Finding Sustainable

Solutions

Reduction of amount the most urgent task!

Making sludge harmless environ. sustainability

Stabilisation of sludge environ. sustainability

Reuse as a resource an ideal way to

circular economy

Development of Sludge Disposal StrategyIntroduction of Wind Energy – Reduction of CO2 – Footprint




Project type

FinancingInvestment

Company

Partner

Status

Hefei, China

[[

TOT for 23 years

Project financing Industrial and Commercial Bank of China CNY 491.33 m (approx. € 48.3 m, BWI 13.2 € m)

Hefei Wang Xiao Ying Sewage Treatment Co., Ltd. (HWC)

20% East China Engineering Science & Technology Co. Ltd80% Berlinwasser International AG

Contracts signed in Nov 2004, operation by HWC since Dec 21, 2004,smooth operation, whilst meeting all effluent limits

O&M Project for another 100,000 m3/d WWTP in Hefei awarded

Purchasing, improvement of efficiency and operation of the wastewater treatment plant Wang Xiao Ying (capacity 310,000 m³/day).




Re-organisation for Efficient Operation and Service

Conduct Energy Consumption Survey

Optimisation of Aeration

Replacement with Energy Efficient Pumps

Optimisation of Sludge Treatment

Introduction Preventive Maintenance System

Domestic and International Trainings

Extensive Optimisation of WWTP

30% Reduction ofSpecific PowerConsumption !

Average OPEX Distribution of WWTP

Water

1%Fuel

3%

Other

3%

Other

Consumables

3%

Maintenance

13%

Electricity

33%

Staff

23%

Chemicals

14%

Disposal

7%




Lessons Learned

• Partnership ( “Marriage” )

- Healthy and trustful partnership with client is the basis for a win-win-cooperation

- Competent and reliable local project partner is a key of success

• Fair Contract

- Open and reliable contract negotiations in detail with knowledge about the

administrative structures and local mentality

- Clearly defined service scope, performance standards and formula for tariff adjustment

- Fair and transparent risk allocation: water volume and quality, financial/loan costs etc.

• Know-how Transfer to Local Staff and Water Authority

- Passing on knowledge in O&M, design and construction

- Capacity building and transfer of responsibilities, esp. for Middle Mgmt.

- Introduction of new technologies and management approach

• Active Support to Local Govs in Solving Environment Problems

- Consultancy for water bodies rehabilitation

- Consultancy for stormwater management and drainage systems

- Proposals for energy efficiency, regenerative energy, sludge disposal etc.

Sustainable PPP

Active Involvement in

Providing Sustainable

Environmental Solutions

PPP in the Form of BOT and TOT




PPP in the Form of BOT – Special Characteristics

Tariff

• Relatively low tariff due to low project life cycle

costs

Quality of Design & Construction

• Operation orientated optimal design using

operators long-standing experience

• Improved quality through consistent project

management and strict supervision

High Standard of Operation

• Transfer of new technologies and management

know-how (e.g. sludge digestion, KPI,

preventive maintenance etc.)

Risks

• Political impacts possible both from local or

central Gov ( legal and regulatory risks, also valid for TOT )

Limitation

• Focus on single WWTP not entire sanitation

system

Lessons Learned




Tariff

• Revitalize utilities’ assets capital for other

municipal projects:(Client’s expected CNY 350 million and 1.00

CNY/m3 BWI: CNY 484 million and 0.75

CNY/m3)

• Relatively high tariff due to premium paid by

private operator for winning the project

Quality of Design and Construction

• Quality of design and construction not optimal

affecting operation stability and increasing

operations cost

Transfer of Assets

• Complex and laborious transfer procedures

PPP in the Form of TOT – Special Characteristics

Lessons Learned

Improved Operation

• Increasing of general efficiency of existing

plant in O&M, energy mgmt, asset mgmt andadministration.

• Knowledge and technology transfer to existing

staff and local water authority

Positive Side Effects• Triggering of other PPP projects in the city

and reform in public sector

Risks

• Similar to BOT projects




Outlook

Tremendous investment and sustainable technologies in rehabilitation of water

environment necessary for the next decades

BOT/TOT are still promising PPP models for Chinese water sector

A true joint effort in providing sustainable water solutions is required,

e.g. meeting ever increasing standards for water and wastewater, reuse of treated

wastewater, sludge disposal and utilisation, increasing energy efficiency etc.

New potential PPP fields: sewer operation, stormwater management, sludge disposal,

desalination etc.

If you are ready for a marriage, BOT/TOT can be a proper solution

s5a public-private partnerships for innovative wastewater management by uwe gysser (short)

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