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1 Lecture 6: Economics & Geopolitical dimensions ZAINI Lund Univ., Sweden, 25-29 Feb. 2008 Lecture 6: Economic and geo-political dimensions Prof.

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Presentation on theme: "1 Lecture 6: Economics & Geopolitical dimensions ZAINI Lund Univ., Sweden, 25-29 Feb. 2008 Lecture 6: Economic and geo-political dimensions Prof."— Presentation transcript:

1 1 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 Lecture 6: Economic and geo-political dimensions Prof. Ir. Dr. Zaini Ujang zaini@utm.my http://www.fkkksa.utm.my/staff/zaini

2 2 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 2 Presentation outline Recent challenges Can you explain the basic principles? Paradigm shift What will people pay? Willing to pay? Triple bottom-line Innovation for what?

3 3 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 3 Question 1 At what level (percentage of incomes) rich economy are willing to pay for environmental sustainability? Water bills?

4 4 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 4 Question 2 Priorities the following issues in developing nations: –Education –Road –Food supply –Piped water –Proper sanitation –Job opportunities –Security –Public order

5 5 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 5 Lesson from my life!

6 6 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 6 Millennium Development Goals for Water & Sanitation Adopted at the World Summit on Sustainable Development (2002) By 2015 to reduce by half the proportion of people who are unable to reach, or to afford, safe drinking water. By 2015 to reduce by half the proportion of people who do not have access to safe sanitation facilities. CHALLENGES?

7 7 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 7 Target water pollutants, chronologically… EraPollutantsSolutions 1800sPathogenic bacteriaSewer system 1900sBOD, CODBiological wastewater plants 1950sHeavy metals, biodegradable substances Treatment at source 1970sEutrophicationN and P control 1980sTrace substances, carcinogens, flavor, taste Activated carbon, membrane technology 1990sCO 2, NH 4, N 2 O, CFCs, NO x, SO x Energy saving, photosyntetic bacteria, biotechnology, MBR 2000sEndocrine disrupting chemicals (EDCs), eco-hazard Membrane technology Ujang Z. & Henze M. (2006) Municipal Wastewater Management in Developing Countries, IWA Publishing, London

8 8 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 8 Potential water resources Water Survival Strategy If you need more water, import or make it yourself Use less water – conservation, tariff, efficient, technology Less consumption and demand Steal water from others! Water technology Marq de Villers (2000) Water: The Fate of Our Most Precious Resource, Mariner Book, NY

9 9 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 9 Back to basics We need water –Domestic / household –Industrial –Agricultural We produce wastewater –Public health? –Environmental protection? –Wealth creation? Domestic economy? We need money to pay for the services –Full subsidy –Partial subsidy –Full recovery

10 10 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 10 Monitoring: From on-site to on-line; From in-situ to remote sensing Purification: From sieving to bio-transformation; From big to small plants Treatment: From pollution reduction to pollution prevention Pollution control: From end-of-pipe to cleaner production Raw water intake: From clean upstream to polluted downstream Resource management: From free to precious commodity Public perception: From quantity to quality Paradigm shift in water management & technologies

11 11 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 11 Management approach: From sectoral to integrated River: From natural to concrete; From concrete back to natural channels Water delivery: From long pipes to bottled water Sewer network: From long, centralized to decentralized and small system Sludge management: From disposal to high value reuse; Co-disposal with gabbage Automation and control: On-line metering and billing Service: From public utilities to private companies & consumer products Paradigm shift in water management & technologies

12 12 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 12 Baltimore Charter 2007 Sustainable small & decentralized system Organized by Water Environment Research Foundation Supported by US EPA 50 participants (35 USA, 15 others) –Subject matters –Representative of sectors –Representative of continents, grouping etc To outline research agenda to meet the needs in 2025 To review the existing philosophy, framework, concepts, approaches and engineering practice Propose a framework for WATER SUSTAINABILITY

13 13 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 13 Baltimore Charter 2007 Sustainable small and decentralized system G. Tchobanoglous, UC Davis

14 14 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 14 Eg: Pollution control: From end-of-pipe to cleaner production Water technologies End-of-pipe approach Production process Waste energy/ materials Pollution capture Product consumption Waste Disposal Waste DisposalWaste

15 15 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 15 Eg: Pollution control: From end-of-pipe to cleaner production Water technologies Design for life-cycle Reuse of waste energy and by-products Minimal waste disposal Production Reuse Recycle Repair Disposal (minimal waste) Minimal waste Product consumption Cleaner Production

16 16 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 16 Sewer network: From long, centralized to decentralized system Water resources: Stream, groundwater etc Water treatment plant Water users, industries Sludge treatment, reuse Effluent discharge, reuse Distribution system Sewer Centralized wastewater treatment plant

17 17 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 17 Decentralized sanitation and reuse (DESAR) Distribution system Water users, industries Centralized wastewater treatment plant Sludge treatment, reuse Effluent discharge, reuse Water treatment plant -Bottled water -Rainwater Reuse of sludge, Treated wastewater Individual on-site WW & SW treatment e.g. sewer bioreactor Water resources: Dam, stream, groundwater etc

18 18 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 18 Why an ideal system does not work in most developing countries? The regulatory requirement is too good and perfect (e.g. BOD 10 mg/l for discharge standards) The system has no local inputs (e.g. trained engineers and research facilities) The system has no capable implementers (e.g. able politicians, trained engineers and skilful operators) The system has no legal back up (e.g. acts, legislation) The system has a poor financial framework (CAPEX, OPEX) The system is efficiently corrupted (political influence, etc.)

19 19 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 19 Expenditure in the Eighth Malaysian Plan (RMK8, 2000-2005)) Allocation in the Ninth Malaysia Plan (RMK9 2006-2010) UtilitiesExpenditure RMK8Allocation RMK9 Water supplyRM3,882.9RM8,203.6 SewerageRM1,347.9RM3,132.8 Rural water supplyRM733.9RM1,206.5 Flood mitigationRM1,788RM3,997.6 TOTALRM7,752.7 bRM16,504.5 b

20 20 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 20

21 21 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 21 What will people pay? My monthly water charges and other bills ServicesMonthly, RMPercentage Water supply50<5 Sewerage services8<1 Cell phones (4)300 + 100 + 50 + 5050 Fixed-line phone15015 Internet889 ASTRO bill49<5 Solid waste10 (?)<1 Electricity150<15

22 22 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 22 Why I am willing to pay, generously, for the cell phones? Service I need Improve my communication, in real time My children call me, 4 to 5 times a day! BASIC NEED, NOT LUXURY ITEMS! Note: I change my cell phone every year with the latest model, slimmer but more applications

23 23 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 23 Consumers’ perspective LEVEL 1 Basic services Reasonable cost Public health protection LEVEL 2 Quality services Competitive cost Environmental protection

24 24 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 24 Consumers in 1970  Do we really need tab water?  Do we require a wastewater treatment plant?  Do we need landfill for solid and hazardous waste disposal?  Do you prefer water from well, or river? Consumers in 2007  Do we really need bottled water?  How best we can achieve nutrient removal in wastewater treatment plant?  How best we can operate sanitary landfill for solid and hazardous waste disposal?  Do you prefer mineral or reverse osmosis water?

25 25 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 25 Producers’ / service providers’ perspective LEVEL 1 Quality services Competitive or reasonable cost Reliable services Customer-driven LEVEL 2 Expending market segment Share holders’ expectation Innovation Reputation

26 26 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 26 Triple bottom line Producers’ or service providers’ perspective Producers / service providers Consumers Consumer basic needs Full cost recovery plus environmental tax Fixed-water tariff structure Full cost recovery

27 27 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 27 Triple bottom line principle Financial costing Social costing Environmental costing MODEL FOR SUSTAINABLE TARIFF STRUCTURE Basic needsCross subsidy Over consumptionFull cost recovery Wastage consumptionFull cost recovery + Environmental tax >> WastageFull cost recovery + Environmental tax + Wastage tax

28 28 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 28 Issues lead to innovations Operating and maintenance cost Upgrading old modular plants Upgrading without subsidy? Options for upgrading schemes Higher compliance, higher quality IT IS MOSTLY INNOVATION IN MANAGEMENT SYSTEM, AND PARTLY TECHNOLOGY

29 29 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 29 Management issues Cost for small and decentralized systems Total capital cost / PE Design Population / PE / Flowrate

30 30 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 30 Cost of high tech NEWater project in Singapore ProjectsProduction capacityCAPEXStatus Bedok NEWater32,000 m 3 /dS$15.53 mCompleted Kranji NEWater40,000 m 3 /dS$21.05 mCompleted Seletar NEWater24,000 m 3 /dS$25.90 mCompleted

31 31 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 31 Upgrading modular plants to centralized and combined plants  Main sewer line  Connecting decentralized WWTP  WWTP site???? Existing MWWTP Centralized WWTP Existing IWWTP

32 32 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 32 New innovation using granular sludge Influent Pre-treatment Selector Anaerobic tank Denitrification Aerobic tank Effluent Sludge Digester CH4CH4 Sludge Dewatering Sludge SBR Effluent Aerobic Granular Sludge Reactor

33 33 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 33  Straightforward (no return sludge, less sludge handling)  Small area requirement  Simultaneous N,P and COD removal in one reactor  High-speed unit process  More efficient treatment system Why aerobic granular sludge reactor? Nitrification (NH 4 + O 2  NO x ) Phosphate removal and anoxic growth (stored COD + NO x + PO 4 2-  N 2 + CO 2 + H 2 O + poly-P) C, N and P removal (as well as settling and thus biomass effluent separation) in one reactor Heterotrophic growth (COD + O 2  CO 2 + H 2 O)

34 34 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 34 Latest innovation

35 35 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 35 Latest innovation

36 36 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 36 Case study in Jakarta

37 37 Lecture 6: Economics & Geopolitical dimensions ZAINI UJANG @ Lund Univ., Sweden, 25-29 Feb. 2008 37 Thank You! Terima kasih! Tak!

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