1. Budapest Water Summit 2016 Civil Forum, Budapest, 29-30 November 2016
Sustainable management and affordable development (DCC/LCC) as an artery of a living city
Károly Kovács
President of
European Water Association (EWA)
Hungarian Water Cluster (HWC)

2. Water issues in Sustainable Development Goals (SDGs)
Water related issues arise in connection with all the other SDGs!
Connects SDGs, provides synergy

3. Urban infrastructure investment needs during the next 25 years
$41 trillion in total
Global infrastructure development and reconstruction needs based on global urbanization trends
Trillion: 1,000,000,000,000 (one million million; 1012)
Source: UNEP City Level Decoupling 2013

4. Urban water infrastructure challenges and opportunities
Water scarcity vs. infrastructure scarcity
Climate change
Urbanisation
Financing initial investments
Financing operation and reproduction
Affordability (3T)
Opportunities
knowledge sharing and cooperations
less already existing, ageing infrastructure more opportunity to benefit from new concepts like
Circular economy
Resilient infrastructures
„right water to the right user” of water
health, safety
economic development
new jobs
significant savings on social level (tap water vs. bottled water)
3T: Tariffs, Taxes, Transfers

5. About EWA
Established in 1981 under the name European Water Pollution Control Association (EWPCA) during IFAT in Munich
Reaching 50,000 individual water professionals
Regular conferences and high level professional events
Sustainable management of the total water cycle
Promote the advancement and adoption of integrated water management
Exchange of knowledge and expertise  providing a forum for the discussion of key technical, economical, scientific and policy issues

6. Tackle water challenges
Wise investments >> cost efficiency
Proper option analysis: Dynamic Cost Comparison (DCC)
Public procurement: Life-cycle Costing (LCC) as award criteria
Affordability
The three ultimate ways to finance water services : the 3T’s
Tariffs: price of water services, including environmental taxes on the water bill.
Taxes: national, regional or municipal general taxes.
Transfers: money coming from another sector/country

7. Drinking water sachets The official water tariff
What is „affordable”?
How much do people pay for water when they don’t have a utility service?
Drinking water sachets
Cape Verde
Port Moresby
$11.46/m3
$48.21/m3
The official water tariff
$5.78/m3
$0.45/m3

8. WssTP Vision Paper: The Value of water
Civil sector as accelerators
WssTP Vision Paper: The Value of water
„The right water for the right purpose to the right users”

9. The original objective of the project:
The DCC project: A good European practice of a knowledge transfer
International methodological project
With the participation of 5+1 CEE countries (HU, BG, RO, SK, CR+DE)
The original objective of the project:
Improvement of the planning process with a new methodological approach of option analysis

10. Dynamic Cost Comparison (DCC)
For calculation of Life Cycle Cost (LCC) and
selection of the most cost-efficient, optimum solution!
Main principle of (DCC)
For the correct evaluation of cost-efficiency, all costs of the whole life cycle should be taken into account, and cost should be compared on their present value.
Life-cycle approach
Dynamic approach
Real term thinking
Considers all costs
Well-established, professional, transparent
Mutual language of engineers and economist

11. Apply Life-cycle Costing (LCC) at the right stages of management cycle
Proper option analysis: Dynamic Cost Comparison (DCC) for cost-efficiency
Public procurement: Life-cycle Costing (LCC) as award criteria
Two important phases of planning process, apply is in the right stages

12. What does a smart city have to do?
Smart decision-making
Apply state-of-the-art decision-making methodologies
Select the optimum technical solution with the lowest life cycle cost
Cooperations, sharing of knowledge and experiece
Involve stakeholders
Professional water management
Drinking water purification
Wastewater treatment
Stormwater magagement
Asset management

13. Thank you for your attention!
„The best way to predict the future, is to design it.” Buckminster Fuller
Thank you for your attention!
Károly Kovács
European Water Association