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SuMoCoS Sustainability and Mobility in the Context of Smart Cities https://uol.de/se?sumocos Ulaanbaatar, September 23-27, 2019 Economic instruments for water management of Mongolia: Analysis of water pollution control by economic instruments Dr. J.Batsuuri, J.Gerelchuluun, S.Nyamdavaa, G.Narantuya [email protected]
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Page 1: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

SuMoCoS Sustainability and Mobility in the Context of Smart Cities

https://uol.de/se?sumocos Ulaanbaatar, September 23-27, 2019

Economic instruments for water management of Mongolia:

Analysis of water pollution control by economic instruments

Dr. J.Batsuuri, J.Gerelchuluun, S.Nyamdavaa, G.Narantuya

[email protected]

Page 2: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Contact SuMoCoS Sustainability and Mobility in the Context of Smart Cities

2

GERELCHULUUN Javzan /Head of the Water rate tariff department/

NYAMDAVAA Sainnemekh

Water Services Regulatory Commission

6th floor, “N tower”, Ikh toiruu 81/1,8th khoroo, Sukhbaatar district, Ulaanbaatar city 141928 Mongolia

+976 99991219

www.wsrc.mn

[email protected]

Gerelchuluun

Page 3: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Contents

Introduction

Methodology

Legislation

Economic instruments for water management of Mongolia

UB wastewater management

Water Pollution Control: Polluter pays principle

Economic Incentives: Water Pollution fee

Wastewater tariff, needs to change and effective wastewater tariff structure

Gerelchuluun 3

Page 4: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Start

The big WWTPs of Mongolia established in 1965-1970s

Most of the aimag centers WWTS s were renovated since 2000s.

Now

But most of them couldn’t operate normally or cant work.

UB CWWTP and 15 aimag centers WWTPs started to renew.

Need

For the correct and effective utilization of these WWTPs it is necessary to define failures and causes of the damages, injuries and take the necessary measures to eliminate these problems.

Introduction

Causes might be:

- Weak legal condition

- Lack of funding O&M

- Lack of qualified workers etc.

Gerelchuluun 4

Page 5: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Methodology

Gerelchuluun 5

Economic instruments for pollution

control

Situation analysis

Legal condition

review, control on

water pollution Analysis

current economic

instruments for pollution

control

Framework for pricing of wastewater

Tariff setting/ Computationa

l framework

Page 6: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Legislation

WATER RESOURCE MANAGEMENT

In 2004 approved Water Law Introduced idea river basin management, Established Water Authority Improved the water pricing system , Introduced water use fee /tax/

In 2012 approved Water Law and Law on Environmental Resource Use Fee, Law on Water Pollution Improved IWRM, approved national IWRM plan established River Basin

Authorities Improved the water pricing system Introduced polluter pays principle /WPL adopted in 2019./

WATER&SANITATION MANAGEMENT

In 2002 approved Law on Urban, Settlements Water Supply and Sewerage Utilization Improved WSS management and water&waste water tariff condition

In 2003 and 2011 approved Law on Urban, Settlements Water Supply and Sewerage Utilization Introduced regulation option and established WSRC

Gerelchuluun 6

Page 7: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Economic instruments for water management of Mongolia

Gerelchuluun 7

No Type Laws Targets In reality Remarks

1 Water resource use fee /tax/

Water Law Law on Natural Resources Use Fee

Rational water use, increase water use effciency

yes

To decrease water loss yes, no Water utilities do not pay

To manage extraction of water from sources, to protect environment

yes

To decrease groundwater use and increase surface water use

no big changes

2 Water pollution fee

Law on Water Pollution

Water pollution prevention and reduction

no Not yet implemented.

3 Water resource depletion fee

Water Law To develop green city no Not yet implemented

4 Water and wastewater tariff

Law on Urban , Settlement’s WSS Utilization

Continuous and reliable WSS service

yes can't cover full cost

Page 8: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Economic instruments for water management of Mongolia

Gerelchuluun 8

No Type Laws Targets In reality Remarks

1 Water resource use fee /tax/

Water Law Law on Natural Resources Use Fee

Rational water use, increase water use effciency

yes

5 Compensation fee&penalties

Environmental Protection Law, Law on Violation

Rational water use, increase water use effciency

yes

To prevent over extraction yes

Water pollution prevention and reduction

no No real economic incentives

6 Subsides 209 resolution of GoM

For ger area water supply yes, no Only for some provinces

7 Other insentives

Water Law, Law on Natural Resources Use Fee, Water pollution fee

Rational water use, increase water use effciency

yes, no

Law on Water Pollution ammended in 2019. Not yet implemented.

Page 9: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

UB wastewater management

USUG – Water supply and Sewerage Authority of UB

Management UB city

Regulation WSRC

Control Inspection Agency

Gerelchuluun 9

№ WWTP Year of

operation Treatment method

Decontamination

Method

1 CWWTP 1964 Mechanical and biological UV and chlorination

2 Nisekh 2014 Mechanical and biological Chlorination

3 Moringiin davaa 2018 Mechanical and biological UV

4 Bayangol 1978 Mechanical and biological Chlorination

5 Biokombinat 1990 Mechanical and biological Chlorination

6 Dambadarjaa 2010 Mechanical and biological Chlorination

7 Bagakhangai 1989 Mechanical Chlorination

8 Industrial

pretreatment plant 1972 Mechanical and chemical -

Page 10: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

UB wastewater management

Enter your name here 10

40,0

50,0

60,0

70,0

2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Mln

m3

Water extraction Treated wastewater

0,0

50,0

100,0

150,0

200,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Appartment households Thous. household

Page 11: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

UB wastewater management

Enter your name here 11

0,0

5,0

10,0

15,0

20,0

2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Water loss Mln m3

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

1600,0

1800,0

2000 2009 2011 2017 2018

Suspendedsolids, mg/l

COD, mg/l

BOD, mg/l

COD=800

SS=400 BOD=400

Page 12: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Water Pollution Control: Polluter pays principle

Water pollution control /MNET, Inspection Agency etc./ Environmental Protection Law

Law on Violation

Law on Water Pollution

Law on Urban , Settlement’s WSS Utilization

Effluent standards

To 2019 Effluent stardards

Other measures /restrict or stop services/

No real economic mechanizm

Water pollution is increased and influenced on CWWTP

Gerelchuluun 12

Page 13: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Economic Incentives: Water Pollution fee

On of the causes of water pollution: Absence of the Economic Incentives

In 2012 Introduced pollution fee based on polluter pays principle /but couldn't implement due to absence of the laboratory capacity and couldn’t prepare related rules/

Effluent concentration within the standards – pollution fee

Effluent concentration within the standards - penalties /2-3 times higher than pollution fee/

The rate depends on • Quality of wastewater discharged from any industry or entity

• Volume of wastewater discharged

Proposed pollution fee rate

150-350 MNT/m3

Exempt- households, schools, offices, health org.

Gerelchuluun 13

Page 14: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

Wastewater tariff, needs to change and effective wastewater tariff structure

Wastewater tariff Volume of wastewater discharged to the system

Different by customer type • Tannery, car wash, spirit, meat industry

• Soft drinks, food

• Other

• Household

If decrease pollution no benefits for polluters

Necessary to renew Connect with pollution fee

- 3-4 costumer categories based on effluent concentration

- If decrease pollution can change to low level /tariff will decrease/ or increase pollution can change to high level

- Revenue requirements have to recover O&M of the WWTP

Gerelchuluun 14

Economic instruments are most strong tool for pollution control!

Page 15: Economic instruments for water management of Mongolia ......fee /tax/ Water Law Law on Natural Resources Use Fee Rational water use, increase water use effciency yes To decrease water

SuMoCoS Sustainability and Mobility in the Context of Smart Cities

https://uol.de/se?sumocos Ulaanbaatar, September 23-27, 2019

Thank you for your attention

Enter your name here 15


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