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HIGHLIGHTS Wastewater treatment enterprises treat water before disposal or recycle the water so that it can be reused. Enterprises provide household wastewater treatment systems that are modular, have low operating costs in terms of electricity and maintenance, have silent operation and less odor and offer quick returns on investment. Enterprises focusing on industrial wastewater treatment solutions offer efficiency and cost effectiveness. They are quickly commissioned, fully automatic, have remote monitoring, require minimal hazardous chemicals, and treat water for reuse. INCLUSIVE INNOVATIONS Inclusive Business Models for Wastewater Treatment Enterprises have developed integrated, affordable wastewater treatment solutions for industries and households to encourage reuse or safe disposal Summary Wastewater sources include domestic wastewater—pertaining to liquid outflow from toilets, bathrooms, basins, laundry, kitchen sinks and floor washing, and industrial wastewater—effluent water that is discharged during manufacturing processes in factories or by-products from chemical reactions. There are significant operational and financial challenges associated with wastewater treatment in marginalized residential communities, where domestic wastewater does not get treated at source, but instead is discharged to local municipal facilities or directly into water bodies. Similarly, industrial wastewater is heavily contaminated and leads to pollution and diseases, if disposed without treatment. It may also contain metals that have high market value and could potentially be recovered. Social enterprises have introduced unique technologies and integrated solutions to treat such wastewater either for safe disposal or for reuse. These solutions aim to be efficient, affordable and convenient. There are two major types of wastewater treatment plants—household (residential) systems and industrial systems. This series on Inclusive Innovations explores business models that improve the lives of those living in extreme poverty. Editors are Elaine Tinsley and Natalia Agapitova. Researched and developed by Intellecap.
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Page 1: INCLUSIVE INNOVATIONS Inclusive Business Models for ......They are compatible with municipal wastewater treatment infrastructure and can provide pretreatment and sewer mining support,

HIGHLIGHTS• Wastewatertreatmententerprisestreat

waterbeforedisposalorrecyclethewatersothatitcanbereused.

• Enterprisesprovidehouseholdwastewatertreatmentsystemsthataremodular,havelowoperatingcostsintermsofelectricityandmaintenance,havesilentoperationandlessodorandofferquickreturnsoninvestment.

• Enterprisesfocusingonindustrialwastewatertreatmentsolutionsofferefficiencyandcosteffectiveness.Theyarequicklycommissioned,fullyautomatic,haveremotemonitoring,requireminimalhazardouschemicals,andtreatwaterforreuse.

INCLUSIVEINNOVATIONS

InclusiveBusinessModelsforWastewaterTreatmentEnterpriseshavedevelopedintegrated,affordablewastewatertreatmentsolutionsforindustriesandhouseholdstoencouragereuseorsafedisposal

SummaryWastewater sources include domestic wastewater—pertaining to liquid outflow from toilets, bathrooms,basins,laundry,kitchensinksandfloorwashing,andindustrialwastewater—effluentwaterthatisdischargedduring manufacturing processes in factories or by-products from chemical reactions. There are significantoperational and financial challenges associated with wastewater treatment in marginalized residentialcommunities,wheredomesticwastewaterdoesnotget treatedat source,but instead isdischarged to localmunicipalfacilitiesordirectly intowaterbodies.Similarly, industrialwastewater isheavilycontaminatedandleads to pollution and diseases, if disposed without treatment. It may also contain metals that have highmarketvalueandcouldpotentiallyberecovered.Social enterprises have introduced unique technologies and integrated solutions to treat such wastewatereitherforsafedisposalorforreuse.Thesesolutionsaimtobeefficient,affordableandconvenient.Therearetwomajortypesofwastewatertreatmentplants—household(residential)systemsandindustrialsystems.

ThisseriesonInclusiveInnovationsexploresbusinessmodelsthatimprovethelivesofthoselivinginextremepoverty.EditorsareElaineTinsleyandNataliaAgapitova.ResearchedanddevelopedbyIntellecap.

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April2017/2

Unsafe water is the primary cause of hospitalization, disease and death in emerging countries

DevelopmentChallengeIn a developing urban society, wastewater generation usually averages 30-70 cubicmeters per person peryear. Thus, a city of one million people can generate wastewater that would be sufficient to irrigateapproximately 1500-3500 hectares1. Unfortunately, in developing countries, approximately 90 percent ofwastewaterisuntreatedwhendischarged2.Waterpollutioncausesillnessandaccountsfor50milliondeathsperyearworldwide,especiallyinAfricaandAsia3.Wastewater management is increasingly becoming a priority issue indeveloping countries; accelerating urbanization exacerbates the situationresulting from inadequate systems, technology and infrastructure. In mostdevelopingcountries,wastewatertreatmentistheresponsibilityofthelocalGovernment. Municipal treatment of household sewage involving largecollectionnetworksandtreatmentplantsincurenormouscostsandconsiderabletimeforconstruction.Thesecentralizedtreatmentplantsarealsoofteneconomicallyunviableastheyrequireinvestmentsincollectionandconveyance of wastewater via piped networks. Due to the dependence on “end-of-pipe” wastewatertreatment instead of on-site residential wastewater treatment technologies, the reuse rate is less. This isbecauseend-of-pipetreatment isgenerallyoperatedat locationsawayfromthesourceofmunicipalsupply,andtransportingrecycledwatermaybecostlyandinefficient.Similarly,therearechallengesintreatingindustrialwastewater.Manufacturingunitsgeneratelargevolumesof effluents, which include toxic and hazardous components such as feedstock materials, by-products andproductresidues,washing/cleaningagents,solvents,andotherproductslikeplasticizers.Whenleftuntreatedand unattended, such industrial effluents pose a huge threat to the environment, including soil healthdeterioration,water table contamination, andotherpotential healthhazards.Wastewater treatment allowshuman and industrial effluents to be disposed ofwithout danger to health or damage to the environment.Treated wastewater can alleviate water supply challenges, and be used for non-potable purposes such asagriculturalandlandscapeirrigation, industrialprocesses,toiletflushing,andrecharginggroundwaterbasins.Waterreuseallowscommunitiestobecomelessdependentongroundwaterandsurfacewatersources,andcandecreasethediversionofwaterfromsensitiveecosystems.BusinessModelWastewater treatment is deployed by a broad range of industries and government bodies such asmunicipalitiesforsafedisposalorrecyclingofwater.Someindustriesthatusewastewatertreatmentsystemsinclude pulp and paper industry, food and beverage industry, marine industry, poultry and aquaculture,healthcare, and chemicals.Municipalwastewater treatment and the foodandbeverageprocessing industryform the major share of the market. Water scarcity, energy savings, and increasingly complex industrialwastewater treatment demands are pushing companies to implement new techniques to optimizeenvironmentalandeconomicperformance.Formanysmallandmediumenterprisesandresidentialblocks,conventionalwastewater treatmentsystemsareverytechnicallysophisticatedandexpensive.Theconventionalsystemsoftenrelyonhighenergyinputsforoperationsandrequireextensivemaintenanceservices.Inordertoaddressthischallenge,thereisagrowingmarketfordecentralizedwastewatermanagementsystems(systemsthattreatanddisperseswastewaterfromindividual homes or a cluster of homes at or near the source of the wastewater discharge) for residentialhouseholds too. These systems allowwastewater to be recycled and reused for daily water needs such as

1 Wastewater Treatment and Reuse: Sustainability Options; Consilience: The Journal of Sustainable Development 2 http://www.biasharaleo.co.ke/index.php/en/2014-10-19-18-25-47/main-story/item/202-agua-kenya-banks-on-plants-to-turn-waste-water-into-treasure 3 https://www.changemakers.com/discussions/entries/fungi-based-waste-water-treatment

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April2017/3

Ecosoftt also provides water education to children, rainwater harvesting systems and systems for wastewater recovery and groundwater recharge

washing,bathingandcooking.Suchonsiteanddecentralizedwastewatertreatmentsystemscanalsosupportwater resource management goals in many arid areas of the country. Their use complements existinginfrastructureinsituationswherecentralizedsewerageisimpractical,unaffordable,orwaterreuseisdesired.Theyarecompatiblewithmunicipalwastewater treatment infrastructureandcanprovidepretreatmentandsewer mining support, in addition to serving as an alternative where centralized plants have reached orexceededcapacity.

Figure1.Householdandindustrialwastewatertreatment

HouseholdwastewatertreatmentMany social enterprises have developed solutions that not only address domesticwastewater disposal, butalsofacilitaterecyclingofthewastewatersuchthatitcanbeusedforcleaning,irrigation,flushingandothernon-drinkingpurposes.Theseenterprisestreatboth,greywater(wastewaterfromnon-toiletplumbingfixturessuch as showers, basins and taps) and blackwater (water that has beenmixedwith waste from the toilet,kitchenanddishwashers).Thehouseholdsystemsgenerallyhaveacapacitythatrangesfrom1.5m3to150m3

andserve1-20householdsorsmallenterprises4.

Some solutions also use unique biological treatment methods to treatwaterfromcommercialbuildings.VisionEarthCare,a,India-basedstartup,usesauniquesoilbiotechnology(SBT)processtoprovidewatertreatmentandreuse forhotels, resorts,hospitals,andrailways. Its treatmentplantsincuroperationalandmaintenancecoststhatare60percentlowerthanaconventional sewage treatment plant. It uses a novel high-efficiencynatural oxidation process that replaces the use of heavy blowers for4 http://www.borda-net.org/basic-needs-services/decentralized-wastewater-treatment.html

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April2017/4

Bridgedots has a water repellant product for increasing the efficiency of sludge dewatering, making the disposal of industrial wastewater cost-effective

oxidationinconventionaltechnologies.Therecycledwatercanbeusedforwater-demandingactivitiessuchastoilet-flushing,gardening,irrigation,constructionwork,andcarwashing.Becauseofitshighoxygencontent,itcanalsobeusedinfishfarms.Generally,mosttraditionalwatertreatmentsolutionshavebeenbulkyandrequirespace.Inordertoaddressthis issue, some enterprises have developed lightweight and modular solutions. For example, Grey Water(JaldharaTechnologiesPvt. Ltd.)manufacturesdecentralizedand fully automatic sewage treatment systemswhich purify and recirculatewater for cleaning homes, heating/cooling, and flushing. Their systems requireminimuminstallationworkandareplug-and-playsolutions.Additionally, theyhavefewermovingparts thanconventionalsystems,thuscreatingnonoise.IndustrialwastewatertreatmentSocial enterprises help small-scale industries meet their environmentcompliancerequirementsbyprovidingtechnologiesandconsultancyservicestominimize sludge formation and meet zero liquid discharge goals. Sludgeobtainedafterwastewatertreatmenthashighwatercontent.Sincethecostofsludgedisposalisdeterminedbyweight,andwaterisheavy,dewateringsludgeiscrucial for industries.Someenterpriseshavedevelopeduniquetechnologiesto increase the efficiency of sludge dewatering. Bridgedots, an Indian wastemanagemententerprise,hasdevelopedawaterrepellent(hydrophobic)coatingfor polypropylene and cotton bags used in sludge dewatering. The water repellent coating makes thedewateringprocessefficient.Since industries producedifferent effluents, someenterprises focuson aparticular industry forwastewatertreatment.Forexample,SynergyWasteManagement,anenterprise in India,provides treatmentofeffluentwatergeneratedduringtreatmentofbio-medicalwasteandreuseoftreatedwaterforplantationandcleaningpurposes. It provides collection and transportation facilities too. Synergy provides centralized treatmentfacilities to municipal corporations and decentralized treatment solutions to medical institutes, hospitals,nursinghomes,laboratories,bloodbanks,anddiagnosticcenters.Figure2.Wastewatertreatment,designtocollectiontodisposal/reuse

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April2017/5

CostFactorsThecapitalcostsofwastewatertreatmentplantsincludecivilconstruction,equipmentsupplyandinstallation,auxiliarybuildings,andcontractors'overheads.Runningcostsofwastewatertreatmentplantsmainlyincludewastewaterdischargefee,electricitycost,chemicalcost,staffcost,maintenanceandreplacementcost,sludgedisposal, administration cost. Waste water plants incur high electricity costs5. The proportion of thesecomponentsintotalcostvariesindifferentplants.Generally,themonthlycostperm3ofwatertreatedisUSD0.116. In India, ifan industryhastomanageasewageplantwhichcleans60million litersofwaterdaily, theannualcostisaroundUSD0.55million7.

Table1.CostsandcomponentsType Costcomponents

Capitalcosts8 Civilconstruction:25-40percentEquipmentsupplyandinstallation:20-30percentAuxiliarybuildings:10-20percentContractor’soverhead:10-20percent

Operatingcosts9 Electricityfee:27percentWaterdischargefee:18percentStaffcost:18percentSludgetransportanddisposal:13percentMaintenanceandreplacementcost:10percentAdministrationandmarketingcost:9percentChemicalfee:6percent

Themostimportantfactorsimpactingthecostsofahouseholdwatertreatmentplantare10:

1. Consumerawareness:Lackofconsumerawarenessmayleadtohighmarketingcosts2. Market size:Willingness or ability to invest in a long-term wastewater management solution is an

importantcostconsiderationforenterpriseswhiledesigningtheirsystems3. Locallysourcedmaterials:Somefiltersandmembranesmaybeexpensivetoobtainandmanufacturing

costmaybehigherduetoimportofsuchmaterialThemostimportantfactorsimpactingthecostsofanindustrialwatertreatmentplantare11:

1. Economiesof scale:Thecostper literofwastewaterprocessedgenerallygoesdownas thecapacitygoesup.

2. DensityofDevelopment:Denselydevelopedareasarethemostcosteffectiveascollectioncostsareminimizedduetoshortersewerlength.

3. Landcosts:Suitable land is scarceandexpensive. Ifa treatmentplantoccupies less space, thecostscouldbeconsiderablylower.

RevenueStreamsThemajorrevenuestreamsforhouseholdwastewatertreatmentsystemsarefromsaleoftheproduct,annualmaintenancefeeand installationcharges.For industrialwastewatersystems,majorrevenuestreams includeprice of system setup, consulting fees and operating fees. Industrial wastewater treatment enterprisesgenerallyeitherjustdesignandbuildthesystemsformunicipalitiesandlargeprocessingplants,ormanagethe

5 http://www.costwater.com/runningcostwastewater.htm 6 Ibid 7 http://www.businesstoday.in/magazine/features/water-treatment-business-in-india/story/200284.html 8 Primary interviews 9 http://www.costwater.com/runningcostwastewater.htm 10 Primary interviews 11 http://www.capecodcommission.org/resources/RWMP/RWMP_costs_comparative.pdf

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April2017/6

complete end-to-end installation and operations. The revenues for enterprises that adopt a build-operate-transfer (BOT)approachcome largely from the initial setup feesand these revenuesarenot recurring fromoneplant.MostindustrialtreatmentplantsarepresentlyBOT-basedandprefertotakeupprojectsinitiatedbytheGovernmentorfundedbymultilateralagencies.InIndia,amajorityofthewater-relatedprojectsarebeingexecuted for government bodieswith financial support from the JawaharlalNehruNationalUrbanRenewalMission(JNNURM)12,JapanInternationalCooperationAgency,AsianDevelopmentBankandtheWorldBank.Hence revenue and cash flows have been reasonable. Revenues from the private sector (large processingindustries)arestilllimited.Figure3.Householdversusindustrialwastewatertreatment

InIndia,atypicalhouseholdwatertreatmentplantispricedataboutUSD500(INR30,000)13.Thepricingofhouseholdwastewatersystemsisstillquitehighandhence,unaffordableforindividualhouseholds.Mostdecentralizedsystemsarecurrentlycommunity-basedandserveseveralhouseholdsorareinstalledingatedcommunitiesorsocieties.Thisreducesthepriceperhouseholdtosomeextent.However,increasinglynewtechnologiesthatautomatecertainprocessesanduselessenergyareemerginginthemarket.Thesesystemsarepricedlowandtargetedatlow-incomehouseholdsinvulnerablecommunities.Forexample,WetlandsWork!inCambodiatreatswastewaterusingbiologicaltechnologythatrequiresminimaloperationalcostandcanservethefloatinghouseholdsofpoorpeopleinCambodiaatascale.FinancialViabilityThe wastewater treatment market in developing countries such as India is highly fragmented. Enterprisescompete on the basis of cost, technical expertise, experience and brand equity. For large municipal andindustrial projects there is a pre-bidding process, andhence expertise andpast experiencewith credible orwell-knownclientsarecriticalfactors.Enterprisesthatofferenergy-efficientsolutionsatcompetitivecostsarelikelytofindalargersliceofthewastewatertreatmentmarket.Industrialwastewater treatmentplantshaveabreakevenperiodbetween3-8years,due to thehighcapitalcosts.Profitabilitydependsonwhetherthetreatedwaterisreusedbytheindustry,thusreducingdependenceon‘new’water.Theaveragemarginsinthisindustrydependsonthecountry,grantsandcustomerbase,butgenerallyvariesfrom10percentto35percent14.Tostreamlinecosts,companieslikeVATechWabaginIndiahavebuiltcaptivepowerplantswhichutilizethesewagetoproduceenergyThegreenenergygeneratedfromsuch projects is also eligible for carbon credits. Triveni Engineering, another company in the wastewatersector,buildsandoperatessewagetreatmentinmunicipalitiesanddesalinationprojects,andsellsthetreated

12 JNNURM was a city-modernization scheme launched by the Government of India with an investment of USD 20 billion 13 http://economictimes.indiatimes.com/business/vision-earthcare-turning-sewage-into-potable-water/articleshow/6881949.cms 14 Primary interview with Agua Inc

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April2017/7

water to industries.Hence, ithasanadditional revenuestreamthathelps incoveringwastewateroperatingcosts and achieving higher profitability. Business models like these can make large-scale wastewatermanagementprojectsviable.Fordomesticwastewatertreatmentplants,thecustomerbasepresentlyissmallasthereislimitedawarenessandwillingness to install a systemwithinhomesorworkpremises.Manyenvironment-conscious residentialapartments andhousing societies havebegun to accept andadopt thesewastewater treatment plants thatalso reduce their costs of managing sewage. Wastewater treatment enterprises are partnering with largedevelopersandbuilderstoinstallsystemsinmetropolitancities.PartnershipsWastewater enterprises working in low-income communities generally work closely with corporates,educational institutions, government, NGOs and other waste sector stakeholders. Their objectives forpartnership include product development, awareness creation, or creation of marketing and distributionchannels. For example, Ecosoftt works with Gram Vikas, World Toilet Organization, and Environmental &Water Technology Centre of Innovation, Singapore. It also works with Autodesk as a CleanTech partner.EcosofttalsoreceivedagrantfromDesignSingaporeCounciltoadvancethedesignofauniqueproductwithinitsWaterSMARTHomes&Communitiesplatform.Many international organizations and Governments of developed countries have also started programs tosupport innovative enterprises in developing countries that are scalable and have the potential tomake asignificant impact in the waste sector. Waste enterprises participate in these programs to develop theirtechnologies and manage initial costs. For example, Wetlands Work!, an enterprise in Cambodia, haspartneredwithmultiple stakeholders to develop its products. It received financial support of USD 100,000fromtheBillandMelindaGatesFoundationtodevelopaproof-of-conceptforafloatingcommunitysanitationsolutioncalledHandyPod.WW!isalsoapartofSustainableSanitationAlliance(SuSanA).WW!isactiveintheWaterandSanitationcohortintheMinistryofRuralDevelopmentofCambodiawhichhaspartneredwiththeWorld BankWater and Sanitation Program. OtherWW! partners include Save the Children, a (World Bankfunded)EarlyChildhoodDevelopmentprograminfloatingcommunities,localNGOssupportedbyUNICEFforfloatingschoolsanitation,andPeopleinNeedandotherorganizationsforfloodpronesanitation.SupportforthepresentsanitationmarketingscaleupoftheHandyPodcomesfromagranttoWaterAidCambodiafromCanada’sGrandChallengesforGlobalHealthFund,forwhichWW!haspartneredwithWaterAid.ConservationInternationalandEngineersWithoutBordershavealsosupportedWW!.Implementation:DeliveringValuetothePoorAwarenessWastewatertreatmententerpriseshavededicatedstafftoreachouttoresidentialcommunitiesandindustriestoexplain their treatmentprocess and thepotential benefits. Someenterprises conduct roadshows in ruralareas on the harmful effects of untreated wastewater, while some industrial wastewater systemmanufacturers approach industry associations to reach out to network processing companies for sourcingcustomers.Other enterprises spread awareness about general hygiene and environment protection in localschoolsandcommunities.Forexample,EcosofttrunsaprogramcalledAQUAthatembedsconceptsofwater,wastewater and environment protection into the curriculum of schools, colleges and institutes for higherlearning.Ecosoftthasdevelopedasetofcurriculaandlearningpathstoenablestudentsofvariousagegroupsto become aware of water and environmental issues. Ecosoftt also has an initiative called Solutions forUnderprivileged Lives (SOUL), which is a community-led transformation program that ensures thatunderserved and marginalized communities can obtain access to clean water, recycling and reuse ofwastewater,basicsanitationfacilities,and improvedlivelihoodopportunities.Throughthisprogram, itraisesissues related tohealth risks fromuntreatedwastewater,encouragingmanyof thecommunitymembers tosignupforitssystems.

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April2017/8

In most of Saha’s partner communities, people walk less than half a mile to the water treatment center

Visio Earthcare takes only seven days to setup a plant

The average water price in Saha’a partner communities is 3 cents per 20 liters of water

AcceptanceTo improve acceptance ofwastewater treatment systems, enterprises provide arange of sizes of the system to apply to different quantities of waste. Thesesolutions fit specificneedsandarescalable tocater to futurerequirement.Theyalso offer speedy installation to gain acceptance among the households. Forexample,VisionEarthcare,anenterpriseinIndia,producessystemsthatcanbecustomizedtoresidentialclientrequirements. In thesystem, thesewagewater ispassed through thespecializedmediaandas thewater isfiltered down through it, the sewage is converted into potable water within four hours. The technology isreferred to as soil biotechnology. This reduces overall water consumption by 40-45 percent. Theseimprovementsmakethewastewatersystemsmorereadilyacceptedbynon-commercialclients.Industrial wastewater treatment enterprises that offer end-to-endwastemanagement solutions find readyacceptance.Forexample,BridgedotsinIndiahasaspecializedR&Dteam,whichdevelopstechnologysolutionsfor waste treatment that not only help in removal of hazards from waste, but also in waste utilization. Itdevelopswastetreatmenttechnologyforextractionofvaluablecomponentsfromthewasteandremovalofhazardous material from the waste15. Bridgedots helps its clients to comply with industry regulations andenvironmental specifications of waste water management. It develops innovative solutions for capacityincrementandtechnologyupgrade,andrecoveryofusefulmaterialsfromsludge.Italsoconductswaterauditsforitsclientsincollaborationwithexpertprofessorsandconsultants.AccessibilityManycommunitiesdonothaveregularaccesstocleanwater.However, last-miledeliveryandservice isnotalways commercially feasible for water treatment enterprises. Some enterprises have, therefore, started afranchisemodel inwhichthereseller isalsooneof thebeneficiaries.Forexample,SahaGlobal,anon-profitenterprise inNorthernGhana, trains localwomentobewaterentrepreneurs incommunitiesthat lackcleanwater. Thewomen fetchwater from their local surfacewater source to fill three200-liter drums. Theyusealumtoremovetheparticlesfromthewater,leavingitclear.Thisclearwaterismovedtoapolytankwhereitis treated with chlorine. Saha Global Field Representatives distribute SafeStorageContainerstoeveryfamily inthecommunity.These20-literbucketshavea lid anda tap,whichhelps topreventwater re-contamination in thehome. One Safe Storage Container provides enough drinkingwater for 2-5daysdependingonthesizeofthefamily.AffordabilityInwater-stressedruralregions,standardwastewatertreatmentplantsforpotableanddrinkingpurposesareprohibitively expensive. A localized solution at the community level throughwhich the consumers can alsocontributetowardswaterpurificationismoreaffordableandsustainable.Forexample,SahaGlobaldoesnotdrill wells or use imported pumps that often break down. All of thewater istransportedbyhandfromthedugout, treatedbyhand in thevillageandthencarried home by the consumer. 100 percent of the revenue from the waterbusinesses stays within the community and is managed by the womenentrepreneurs,and isusedtocover thecostof thewater treatmentmaterialsandtocompensatetheentrepreneursfortheirwork.Thewomensellthecleandrinkingwater to their community for a small fee. The communityworkswith thewomen todetermineanaffordableprice.

15 Industrial effluent contains various contaminants such as feedstock materials, byproducts, product residues, washing/cleaning agents, solvents, and other functional products like plasticizers

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Forwaterpolluting industries andprocessingplants, affordability is counteredby theirneed toadhere toagovernmentmandate.Further,iftheycanreusewater,theyperceiveaddedcostsavings.ResultsandCost-EffectivenessScaleandReachTreatmentofwastewaterisoftendrivenbygovernmentmandate(industrialusers),andthedesiretosavetheenvironment and reduce dependence on municipal fresh water (for residential users). Hence, enterprisescateringtoindustrialusersfinditeasiertoscalefasterbyfocusingonindustriesthatproducesignificantwastewater.Enterprisescateringtoresidences,schools,andapartmentblocksmayfinditmoredifficulttoconvincetargetcustomersofthecosteffectivenessoftheirsolutions.Industries generate different types ofwaste depending on the chemical processes they employ. Generally,wastewater systems are built to focus on one or a few of these processes. An industrial wastewatermanagementmanufacturermaythereforeberestrictedinitsabilitytotreatdifferentcontaminants,asitmayhavetheIPandtechnicalexpertiseonlyforaparticulartreatmentprocesssuitedonlytoonesector.Thismayin turn restrict its scalability andexpansion toother industries.As abusinessmodel,wastewater treatmentsystemsarequite scalable geographically. This is because theprocess is standardizedandeasy to replicate.Manufacturingcanalsobecentralizedwithafranchisemodelformarketingandselling.Enterpriseswith treatmentsystems thathavea flexiblecapacity find iteasier toscale.Forexample, inHaitinon-profitorganizationsEngineersWithoutBordersandPartnersinHealthteameduptoinstalla30x45m2

wastewatertreatmentfacilityinahospitalwithadonation-basedbudgetoflessthanUSD250,000.Thesystemcanaccommodateaflowrateofmorethan300m3perdayofcholera-infectedwaste.Itisscalableaccordingtotheneedsofthehospitalandcanhandlefluctuatingflowrates.Itcanbeinstalledinlessthanadayandcanbeoperatedwithouttechnicalexpertiseaswell.Suchsystemsarereplicableandcanreachallthoseareasthathavepoorwastewatertreatmentinfrastructure.

Table2.ScaleatwhichsomewastewaterenterprisesoperateCompany Years ScaleSahaGlobal 8 Launched93cleanwaterbusinesses

Triveni 32 1000industrialunitsofaveragecapacity30MLD16installed

SFC 13 30industrialunitsofaveragecapacity40MLDinstalled

PT.TirtakreasiAmrita 26 200plantsbuiltofaveragecapacity0.3MLD

ImprovingOutcomesWastewatertreatmententerprisesproduceoutcomesthatarebeneficialnotonlytotheconsumer,butalsotothesocietyatlarge.Wastewatertreatmentreducestheamountofwastereleasedintotheenvironment,andhas an impact on health risks associated with environmental pollution. It also reduces the freshwater lossinducedthroughwaterpollution.Wastewatertreatmentreducestheamountofmoneyspentbyacountryonenvironmentalrehabilitationprojectsrequiredtobattlepollution.Householdwastewatersystemscanhelpinrecyclingwastewaterforreuse.Forexample,Ecosoftt’sWaterSMARTHomes&Communitiesplatformallowswatersustainabilitythrougha3-prongedapproach:reducewaterfootprintandwastagebyupto50percent,recycle and reuse up to 80 percent ofwastewater for non-potable purposes; and discharge the balance 20percentinanenvironmentallyfriendlyway.EcosofttalsohasaproductcalledSulabhWaste-to-Energy,whichbringsthedoublebenefitofreducingsludgefromthewastewatertreatmentprocesswhileproducingbiogasbeneficialtothecommunity.16 MLD refers to million litres of wastewater treated per day

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April2017/10

According to the Foundation for Mother and Child Health Indonesia, on average, the benefits of investing in wastewater management, sanitation, and hygiene range from USD 2-3 per dollar invested

Waste water enterprises catering to industrial customers also help them meet environmental norms. Forexample, PT. Tirtakreasi Amrita in Indonesia has a concept of integrated waste management with zerodischarge that reduces Green House Gases (GHG) and enables its clients to generate Certified EmissionReductions(CERs)17.Someenterprisesenablelivelihoodsgenerationalongwithsustainableaccesstotreatedwaterinlocalcommunities.In7years,SahaGlobalhasprovidedjobsto178womenentrepreneursinnorthernGhana.Mostofthewomenarefarmerswhosellsafewatertoearadditionalincome.Forafamilylivingonlessthan USD 2 each day, themoney thewomen earn from thewater treatment business is significant and isinvestedinchildren’shealthandeducation.Cost-EffectivenessThetechnologyusedbywastewatertreatmententerpriseshasasignificantbearingonthecost-effectivenessoftheirbusinessmodel.Forexample,VisionEarthCare’streatmentplantsuseanovelhigh-efficiencynaturaloxidationprocesstoreplacetheuseofheavyblowersforoxidation inconventionaltechnologies.Theplantsare built to be easy to runwith virtually nomaintenance, reducing operational &maintenance cost by 60percent from the operating cost of a conventional sewage treatment plant. Similarly, Agua Inc., Kenya, hasdevised an innovativeway of treating industrial wastewater using floating green filters, a biological watertreatmentmethodthatusesacombinationofhardwareandmacrophytephytoremediationplants,aspeciesof aquatic plants.18 This biological mechanism reduces the prohibitive costs associated with waste watertreatment.Some enterprises provide advanced wastewater treatment systems that make on-site treatment ofwastewater within homes and residential communities highly effective compared to other systems. Forexample, Ecosoftt has systems such asAerobic BiofiltersWithout Sludge (ABWS) that consumes 70percentlessenergythanconventionalactivatedsludgesystems.Itisalsocompatiblewithsolarenergyandincurslowinstallationandmaintenancecosts.Additionally,consumerscanproducerichorganic fertilizerasby-productwhichcanberevenue-generating.Similarly,GreywaterTech(Jaldhara)manufacturesandsellsbothhouseholdandindustrialwastewatersystemsthatare20percent-50percentsmallerthanconventionalsystems,requirenoon-sitefabrication,andhaveverylittleoperatingcostsintermsofelectricityandmonitoring.Manyenterpriseshavedevelopedaffordablesolutionstonotonlytreatpollutedwater,butalsoproduceby-products that can be sold or used to cover the cost of the water treatment. For example, AcuaCare, ahousehold waste treatment enterprise in Colombia, packages worms, microbes and enzymes intobiodegradable, cardboard-box “treatment systems” which purifies water through a process calledvermifiltration19. A USD 170,000 AcuaCare installation for 1,000people produces 32 tons of organic fertilizer annually, worthaboutUSD12,000inColombia20.Everyyear,thesystemalsoyields3 tons of excess earthworms that can be used to make animalfeed,worthaboutUSD7,200.Theseproductsareinadditiontoasteadysupplyofwaterforcrops,gardensorpublicspaces,whichwould cost about USD 25,000 a year from the local municipalwater system. With proper maintenance, an AcuaCare system

17 Based on Kyoto Protocol (1990) the industrial countries can take credit of CERs from developing countries issued by the Executive Board. The Clean Development Mechanism (CDM) in developing countries such as Indonesia, Brazil, China, India etc, which aims to reduce carbon emission, helps the industries in industrial countries (EU, Japan, Canada etc) to fulfill their carbon limit by buying CERs from the developing countries. 18 The ability of macrophytes to hyper-accumulate heavy metals makes them a natural waste water purification method, especially for the treatment of industrial effluents and sewage waste water. 19 A cheaper alternative to septic tanks. Unlike traditional septic tanks that simply filter feces from the water, leaving toxic sludge for later disposal 20 http://www.ozy.com/rising-stars/juan-carlos-guqueta-the-colombian-worm-king/60199

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Many developing countries suffer from political interference in environmental decisions such as site selection and other aspects related to construction and operation of wastewater plants

lastsfor15yearsandbreakevenisestimatedtoreachin4years21.AcuaCarealsouses80percentlessenergyandhasoperatingcosts70percentlowerthanconventionalwaterfiltration—particularlybydecreasingwateruse.There are innovations in industrial wastewater treatment too that reduce costs and make the treatmentprocesscheaperthanconventionalsystems.Forexample,SFCIndiahascomeupwithCyclicactivatedsludgetechnology(C-Tech)forbiologicaltreatmentofalleffluentsthatmakessludgetreatmenthighlycost-efficient.C-Tech consumes 50 percent less power and 50 percent less land area compared to other traditionaltechnologies. It also requires less costly material22, is also fully automatic and does not require constantoperator attention. The treated sewage/effluent canbe used for horticulture, greenbelt development, andindustrialapplicationslikecoolingtower.ScalingUpChallengesThe major challenges for the water treatment sector include technical barriers, sub-optimal markets forrecovered nutrients, lack of awareness of the economic value of water, lack of resources for full-scaleimplementationandvalidationofinnovativesolutions,andlackofknowledgewithregardtotheoccurrenceofemerging pollutants.Wastewater plant operators also have troublemaintaining complicated systemswhilekeeping costs low. In their innovation journey, enterprises often face a challenge after they develop aprototype, due to lack of financial resources for further development, customization, demonstration andcommercialization.Thereisalackofdemonstrationsitesfornewtechnologiestocustomersduetothecapital-intensivenatureofsuchlarge-scaledemonstrationinrelationtotheirperceivedeconomicvalue.Also,thecostof certifying multiple products in multiple countries is prohibitive, resulting ultimately in a limitation oftechnologiestoonlyfewlargescaleprocessespercountrythatjustifytheapprovalcost.Thisultimatelyleadstoadoptionofsub-optimaltechnologies.Energyconsumption isoneof the largestexpenses inoperatingawastewater treatmentplant. Inmunicipalwastewatertreatment,thelargestproportionofenergyisusedinbiologicaltreatment,generallyintherangeof 50 percent - 60 percent of plant usage23. Another challenge for industrial wastewater treatment is therequirement for landtoconstruct theplants.Activatedsludgeplantsareexpensive toconstructandoccupysubstantiallandareas.PrimaryandSecondaryprocessesrelyuponvasttractsoflandforlargeandexpensivesettling tanks and aeration basins.24These processes may not be economically viable for all industries andhenceleadtoloweradoption.Newertechnologiesareaimingtoreducethespaceandcapitaloutlayrequiredtoachievethesameleveloftreatmentthroughalternativeprocesses.RoleofGovernmentandPolicyNational Governments of various developing countries havestrengthened water quality standards and are progressively limitingwastewaterdischarges.Forthesereasons,mostcountriesrecognizethatindustrialwastewatertreatmentprovidesasubstantialpublicgood,andnational budget funds subsidize at least a part of local wastewatertreatment. Given the low level of demand for wastewater services,especially treatment, government regulation becomes an importantfactor in fostering that demand. Regulation (imposing standards onwastewaterdischargesbybothindustryandlocalgovernment)hasbeen

21 The expenses include: 1. Personnel (USD 25,000) 2. Materials and Equipment (USD 20,000) 3. Domestic travel for wastewater sample collection (USD 5,000) 22 It uses all underwater metal parts in stainless steel, resulting in higher plant life and low maintenance costs 23 http://info.oxymem.com/blog/4-major-operational-challenges-facing-wastewater-treatment-plants 25 United Nations Environmental Program Deleted:

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critical in fostering compliance. Enforceable regulation has been found to be critical in allowing economicincentivestowork.Forresidentialcommunities,treatmentisusuallytheresponsibilityofagenciesthatalsoprovidepipeddrinkingwater. These agenciesmay bemunicipalities, countyGovernments, or separate special-purpose authorities.User charges for wastewater are generally tied to piped water consumption, at least for those users thatdischargeintopubliclyprovidedsewagesystems.However,sinceuserfeesalonearegenerally insufficienttorepay capital costs, social enterprisesaredeveloping innovative technologies fordecentralized treatmentofwastewateratthehouseholdlevelandworkingwiththelocalGovernmenttosellthem.Inrecentdecades,compliancewithGovernmentwastewaterqualityrequirementshasbeentheprimarydriverof industrial wastewater treatment programs in developing countries. Most Governments mandatewastewatertreatmentforindustries.IndustriesaresupposedtoabidebytheGovernmentwastewaterqualityrequirementsforthespecificconcentrationlimitsofthewastewaterdischarged.Theregulationsgoverningtherecovery of wastewater, however, vary across countries. Some Governments actually authorize the use oftreatedwastewater to irrigate crops or water green spaces. Since this is an added cost for the processingindustries,governmentsoftenprovideincentivessuchastaxcreditsorrebates.Government regulations in most countries usually rely on the recommendations of the World HealthOrganization(WHO). In India, forexample, theZeroLiquidDischarge (ZLD)orZeroDischarge (ZD)PolicyhasbeendraftedbytheMinistryofEnvironmentandForest (MoEF)andCentralPollutionControlBoard(CPCB).Currently, only a few states and specific industrial endusers like textile and automobilemanufacturers andbreweriesaremandatedtoachieveZLDstatus.Itisexpectedtobeimplementeduniformlyalloverthecountryinthecomingyears. InMalawi,theGovernmenttherequirementtotreatwastewater isunderscoredbytheexisting regulatory framework, institutional arrangements, andpolicy guidelinesOneof the specific goals intheNationalWaterPolicy(NWP)(MalawiGovernment,2005) istoensurewaterofacceptablequalityforallneeds in Malawi. In addition, formalized national effluent standards exist in Malawi (Malawi Bureau ofStandards, 2005). In Indonesia, the Central Government has adopted a national policy to promote privatesectorparticipationinBOTprojectsfortouristhotelsandwatersupplysourceworks.TheGovernmentisalsoaiming to solidify the regulatoryenvironmentanddevelopmechanismswhereby localwaterauthorities canenterintojointventuresandenforceablecontractualarrangementswiththeprivatesector.Governments also support research anddevelopmentof innovative and cost effective technologies to treatwastewater for reuse.TheCentre for ScienceandEnvironmenthasproposed to setup India’s first referrallaboratory for fecal waste to support planning, design and implementation of effective fecal wastemanagementsystemsandmainstreamingdecentralizedwastewatertreatment.TheNationalUrbanSanitationPolicy(NUSP),2008,endorsesreuseofreclaimedwater,andrecommendsaminimumof20percentreuseofwastewater in every city. In the last few years, theGovernment of India has takenmany concrete steps topromotereuseofwastewater.Itbeganwithregulatingindustrialwaterconsumptionandenforcingmandatorywaterreusetargetsforindustries.Most governments, however, face significant challenges in enforcing laws and implementing their plans torecycle and reuse wastewater. Governance of the water sector is characterized by complicated regulatoryresponsibility across political hierarchy levels that result in fragmentation (e.g. different regulations andstandardsperregion).Althoughwastewaterreuseisendorsedinmanypoliciesandprograms,thereisalackofclear guidelines and frameworks to support the implementation of such projects. As a result, the reuse ofreclaimedwaterfornon-potablepurposescontinuestofacechallenges.Theproblemisfurtherexacerbatedbylimitedenforcementoftherestrictiontoextractgroundwaterfornon-potablepurposes.

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Whilefinancialsupportofinternationalorganizationsanddevelopedcountriesisessential,itisimperativethatlocal conditions are considered tomake full use of any aid. The adoption of inappropriate technology andfailuretotakeintoconsiderationthelocalconditionsofthetargetedcommunityresultinprojectfailurethatisoftenblamedonthelackoftechnicalknow-how.Inaddition,governmentsupportisneededforenvironmentaleducationandpublicawarenessandparticipation.ConclusionWhile the wastewater treatment industry is growing rapidly, there continues to be a huge gap betweenwastewatergenerationandtreatment.Althoughthepotentialmarketforwatertreatmententerprisesisfairlylarge, demand for water treatment and management is driven primarily by stringent government policiesprescribing andmandatingwastewater treatment.Other factor suchas increasing industrialization, demandforfreshwaterandincreasingurbanizationinemergingmarketsofAsiaPacificandLatinAmericawillalsodrivewaterandwastewatertreatmentdemand.Whilethemarketforhouseholdwastewatersystemsislessdeveloped,increasingenvironmentalconcernsandirregularwater supplyaredriving thegrowthof systems thatnotonly treatwastewaterbutalsoenable itsreuse.Wastewatertreatmententerprisesoperate inapushmarket,wheretheyarealsotaskedwithmarketcreation. They face a capital crunch from the initial research anddevelopmentphase to commercialization.Thisisnothelpedbytheuniteconomicsofthemodel,whereindividualplantsareexpensive.Governmentassistance,financialandregulatory,aswellassupportfromdevelopmentfinancialinstitutionsisneededtoboostthisbusinessmodel.Astreatmentprocessesbecomemorecost-effective,theadoptionofthewastewatersystemsbybothresidentialandindustrialconsumersisboundtoincreaserapidly.Table3.SocialenterprisesinwastewatertreatmentCompany Country SolutiondescriptionAcuaCare Colombia ThetechnologyusedbyAcuaCareallowsbiologicaltreatmentof

wastewaterusingearthwormsandmicroorganismswhichtransformsthepollutioninthewaterintoorganicfertilizerandallowsthereuseofthetreatedwaterforirrigation.http://www.ozy.com/rising-stars/juan-carlos-guqueta-the-colombian-worm-king/60199

AguaInc Gambia,DominicanRepublic,Mali,Spain,Kenya,Haiti

AguaInc.hasdevisedaninnovativewayoftreatingindustrialwastewaterusingfloatinggreenfilters,abiologicalwatertreatmentmethodthatusesacombinationofhardwareandmacrophytephytoremediationplants,aspeciesofaquaticplants.http://aguainc.com/

BridgedotsTechServices

India,Europe,MiddleEast,USAandAustralia

Bridgedotsprovidesservicesrelatedtoindustrialsolidwasteandwastewatertreatment.http://www.bridgedots.com/

Ecosoftt Singapore,India,HongKong

Ecosoftt'sSolutionsforUnderprivilegedLives(SOUL)programmeisacommunityledtransformationprogramthatensuresunderservedandmarginalizedcommunitiescanobtainaccesstocleanwater,recyclingandreuseofwastewater,basicsanitationfacilities,andimprovedlivelihoodopportunities.http://ecosoftt.org/

GreenvironmentInnovationandMarketing

India Greenvironmentundertakesfreshwaterandrecycledwatermanagementcontractsinurbanapartmentcomplexes.Greenvironmentmonitorsreal-timewaterandwastewatertreatment

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systemsinapartmentcomplexeshelpingthemsignificantlyreducetheirwaterconsumption.http://greenvironmentindia.com/

GreyWater(JaldharaTechnologiesPvt.Ltd.)

India GreyWateroffersauniquerangeofhighlycompact,plugandplay,modularwastewatertreatmentandwaterrecyclingproductsforresidentialandcommercialbuildings,hospitalityandindustrialsectors.http://www.greywatertech.com/

PT.TirtakreasiAmrita

Indonesia,Srilanka,Nepal,VietnamandNigeria

PT.TirtakreasiAmritamakestreatmentplantsrangingfromdrinkingwater,sewagetreatment,tocomplexindustrialeffluenttreatmentplantforvariousindustries.http://www.amritaenvironmental.com/

SahaGlobal Ghana SahaGlobalempowerswomeninruralcommunitiestosolvetheirvillage’sneedforcleanwaterandelectricitybyprovidingbusinessopportunities.http://sahaglobal.org/

SFCIndia India SFCsuppliesCyclicActivatedSludgeTechnology(CTech),anadvancedsequentialbatchreactortechnology.Thistechnologyisextensivelyusedfortreatingdomesticsewageandindustrialeffluents.ThetreatedsewagefromCTechplantscanberecycledforindustrialapplications,gardening,agricultureandotherapplications.http://www.ctechsbr.com/home.php

SKSInfrastructure

India AtSKS,wastewatertreatmentinitiativesaregearedattreatingtheorganic,inorganicandheavymetalcontaminantsinwastewater(sewageandeffluent)tofacilitatere-usabilityincentralizedaswellasdecentralizedmanner.http://sksinfrastructure.com/

SynergyEnergyLimited

India Synergyprovidesintegratedbio-medicalwastemanagementservices.Itcollectsbio-medicalwastethroughitsCommonBio-MedicalWasteTreatmentFacilities(CBWTF)thatcaterstoanumberofhealthcareestablishments.Itthendisinfectsandtreatsthewastethroughincineration,autoclaveandshredding.http://www.synergyworld.co.in/index.html

TriveniEngineering&IndustriesLtd

India TEIL'sWaterBusinessGroup(WBG)offerproductsandservicesthatcovertheentirespectrumofwatertreatmentdesalination,wastewatertreatmentandrecycleforindustries,infrastructureandmunicipalprojects.http://www.trivenigroup.com/water-solution-microsite.html

VisionEarthcare

India VisionEarthcareprovideseffectiveeco-friendlysolutionstowatertreatmentacrossallscales.Itsservicesincludedesignandturnkeyexecutionofsoilbiotechnology.http://www.visionearthcare.com/

WetlandsWork!

Cambodia WetlandsWork!isasocialenterprisethatdesignsandbuildsinnovativeconstructedwetlandsystemstotreatvariouscontaminatedwaters,toallowreuseorsafereleaseintotheenvironment.https://wetlandswork.com/

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OperatingModelNearly90percentofwastewaterinemergingmarketsremainsuntreatedwhendischarged,resultinginsurfacewater contamination and the rapid growth of dead zones in rivers and oceans25. This also has healthimplications for surroundingcommunitiesasat least1.8millionchildrenunder fiveyearsolddieeveryyearfromwaterrelateddiseases.Inemergingmarkets,unsafewateristhenumberonecauseofdiseaseanddeathin these communities. However, most conventional approaches require large quantities of reliable energysupplyandchemicalswhicharesimplynotavailableinmostdevelopingcountries.Agua Inc., abiologicalwastewater treatmententerprisehasdevisedan innovativewater treatmentmethodwhich filters water through matrices of floating plants. Agua uses a combination of specialized plants(PhytoTech),hardware(BioHardware),andfiltermaterials(BioFilters)tonaturallyandeffectivelytreatwaterfor a variety of applications (wastewater treatment and recycling, drinking water purification, etc).Additionally,theabilityofmacrophytestohyper-accumulateheavymetalsmakesthemanaturalwastewatertreatmentmethodforindustrialeffluents.Aguasystemsreplaceconventionalmachineswithitsinnovativeandaffordable treatment method called ABIS (Aquatic Biological Integrated Systems), which acheives similartreatmentprocesseswithbiologicalmethods.

25 United Nations Environmental Program

CASE STUDY: AGUA INC

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Agua optimizes conventional biological treatment processes with specialized biotechnology including custom breed macrophytes and bacterial communities, bio-engineered absorbents, and hardware to increase performance and decrease costs and maintenance.

Because of Agua’s higher capacity, innovative technology and refined operations, Agua systems cost on average 50% less to build and maintain than traditional systems

AguaInc’steamhasexpericenceparticipatinginover200projectsuntildate.Today,itstargetmarketincludeswastewater treatment plant facilities, local and international governments, international developmentorganizations,private investors,corporatesocial responsibilityarms,NGOs,andnationalutility regulators. Itengagesthelocalcommunitytounderstandtheirneedsanddesignsthesystemaccordingly.Oneofthewaysin which it does local outreach is sponsoring local football teams. Agua is also a partner in the GlobalWastewaterInitiative(GW2I),amulti-stakeholderplatformtoinitiatecomprehensive,effectiveandsustainedprogrammesaddressingwastewatermanagement.

Agua undertakes both new builds and upgrades to existingfacilities.Inupgradeprojects,Aguasellsgreenfilterhardware,aswellasspeciallybredphytoremediationplants, toexistingwater treatment systems. In newbuild projects, Aguaworkswith municipal corporations to provide customized turnkeywastewatertreatmentfacilitiesthatarefullyconstructedandreadytooperate.Afterthecompletionoftheproject,ithandsover the operations of the facility to the client and offers

maintenancetrainingandon-goingmaintenanceservices.In addition to building new facilities and maintaining them for clients, Agua offers a Utility DevelopmentProgram,where the enterprise takes overwastewater treatment systemdevelopment andoperations fromcitymunicipalities.Basedonacomprehensiveanalysisofthemunicipality’ssystem,Agua’sengineeringteamdesignsacustomizedupgradeplanfor thesystem. ItsignsaconcessionaryagreementwhichgivesAguatheright to operate the facility and provide wastewater treatment services to its users. Agua works with it’snetworkofprivateandinstitutionalinvestorstoraisetheappropriatefundstopayfortheupgrade.AguaIncassumesoperationsofthefacilityandappropriateupgradesare installed. Itcontinuestooperatethefacilityensuringqualityserviceprovisiontoallusers.Underthismodel,revenueisgeneratedbychargingeithertheappropriateutilityorgovernmentcounterpartforserviceprovisionandallowingthemtochargeendusers,orchargingconsumersdirectly.FinancialSustainabilityAguaincursmajorcostsonmaintenanceoftheplant,leasingandthepipenetworks,anditgeneratesrevenuesfrom design-and-build projects and Concessionary/Build-Operate-Transfer deals (upgrading and operatingwastewatertreatmentfacilityasaservice).Agua’ssystemsaregenerallydesignedtobeenergyefficientandchemicalfree.Asaresult,theenterpriseisabletosaveonelectricity(makingupover25percentofaveragefacility operating costs) and chemicals (25 percent of operating expenses) as compared to traditionalwastewatersystems.Most wastewater treatment facilities generally require Governmentsubsidiestomeetthegapbetweenincomegeneratedfromoperations,and the costs of development and on-going operations. Agua hasimplemented a unique financing method to make the project cost-effective,whereintheGovernmentgivesAguaaconcession-aleasetolands and lagoons. The enterprise then brings private investors toupgrade thesystemand thepublicpays thesamepricepresetby theGovernment,buttoAguainsteadofthemunicipalcorporation.Throughsignificantcostsavingsinoperationsand revenue collection optimization processes, Agua delivers improved treatment at a reduced cost. Thisresultsinreducedsubsidies,andinmanycasesafullyfinanciallysustainablebusiness. Impact

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Agua’s facility in Gambia manages the Kotu Wastewater Treatment Facility and Sanitation Network which services a population area of 200,000 inhabitants

Agua’s waste water treatment system has the ability to bufferhighly polluted effluent, allowing for effective long-termtreatment.Besides,thesystemeliminatesodorsandimprovesthesites natural aesthetics. It is highly adaptable and can eliminatepathogens, fecal matter, heavy metals and contaminants fromvariouswatersourceswithoutchemicalsandminimalenergyuse.Thesystemdoesnotrequiremuchspecializedtechnicalexpertiseandcanbe locally runcreatingdirectemploymentand indirect incomegeneratingopportunities fromwaterrelated activities. Additionally, it also generates clean water for reuse in agriculture and industry andrestoration ofwaterways and aquifers. This biologicalmech anism reduces the prohibitive costs associatedwithwastewater treatment. Agua also creates impact by spreading awareness about vaccination and giveshealthinsurancetoallitsemployees ChallengesandLessonsTheABIStechnologybyAguacanbeappliedtoawiderangeofwatertreatmentapplications;however,itfacessome operating constraints, for example ABIS is not normally recommended for highly salinewastewaters.Additionally, ABIS is most appropriate for warm to temperate climates, and is not suited to far northernenvironmentswithharshwintersunlessagreenhouseisconstructed.Aguaalsodependscompletelyonlocalmunicipalcorporationsasitsclientsandwinningthetenderandexecutingacontractisatediousprocessforit.AguaIncisalsofacingsomefinancingconstraintsandislookingtoraiseexternalfunds.RoadAheadAgua aims to not only make water and wastewater treatmentmore sustainable andmore affordable, butultimately transform a generally subsidized industry into one that can improve environmental and publichealth, while providing good jobs andmaintaining financial viability. Bymaking the offering of these basicservicesfinanciallysustainable,thecompany’sobjectiveistocatalyzeincreasedinvestmentininfrastructuretoclosethewaterandsanitationdevelopmentgapsthatstillremainprevalentinemergingmarkets.

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Wetlands Work! develops technology to treat water using biological processes that break down contaminants and disable pathogens.

OperatingModelGlobally, poor sanitation and contaminated industrial effluentsexacerbate child mortality and human health, decrease theavailabilityandaccesstosafewaterforconsumption,food-relateduses, andwashing, anddegradevitalhabitats.Millionsofpeopleworldwide face annual or episodic flood eventswhich co-minglewastewaters frommany sources, leading to significant health issues for populations over large geographicareas.WetlandsWork! (WW!) isasocialenterprise inCambodiathathasdeveloped innovativesolutionsforsanitationinflood-proneenvironmentsandothercontexts.Itdesignsandbuildsconstructedwetlandsystemstotreatvariouscontaminatedwaters,toallowreuseorsafereleaseintotheenvironment.Oneofthedesignsis a three stage treatment system for flood-resilient sanitation for populations living in such extremeenvironments.Thesystemsignificantlyimprovesuponcurrentpracticesinexcretadisposalandmanagementinseasonallyhighgroundwatertableareas,aswell.WetlandsWork! inCambodiadesignspractical solutions to treatpollutedwater. It specializes inselling low-costinnovativewetlandwatersystemstolow-incomecommunitieslivinginflood-proneareasofCambodia.Italsooffersconsultingservices tobuildand implement lowcost technicaldesigns. It canaddressavarietyofwastewatertypes,andhaveuniqueandpracticaltreatmentsystemsforsanitationinfloatingcommunitiesaswellasforhouseholdsinfloodproneenvironments.In nature,wetland and floodplain plants help to remove contaminants fromwater,while at the same timesupportingavarietyofspecies includingfish,birds,mammals,amphibians, insectsandaquatic invertebratesandmicrobes.Wetlandscanbecreatedtoconvertcontaminatedwater intopotablewater.WetlandsWork!designs ecologically engineeredwater treatment processes to transform domestic sewage and otherwastestreams into improvedwater. Itusescommonwetlandplant species toprovideanactive root surfacearea,

CASE STUDY: WETLANDS WORK!

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The price of a system for a household in flood-prone area is approximately USD 150, whereas a floating household HandyPod system costs approximately USD 140

attached to which are trillions of microbes that break down waste into food usable by numerous otherorganismsinthesystem.Thus,WetlandsWork!designscanbeappliedtocommunitiesinneedofsustainable,low-costaccesstoimprovedwater.Thewaterproducedfromconstructedwetlandscanberecycledforreuse,andcanevenbetreatedfurthertomeetWHOdrinkingwaterstandards.SomeofWW!’smodelscanbeusedinoff-the-gridruralareas,includingthosewherepoor,marginalizedpeople live.At thehousehold level, a simpleWW! systemcanbe setup inseveraldays,usinginexpensive,locallyavailablematerials.Forlargersystems,WW!takesaroundamonthtoconstructandinstallthesystem.WW!ispartofSustainableSanitationAlliance(SuSanA).WW!isactiveintheWaterandSanitationcohort inthe Ministry of Rural Development of Cambodia which has partnered with the World Bank Water andSanitationProgram.OtherWW!partners include Save theChildren, a (WorldBank funded) Early ChildhoodDevelopmentprograminfloatingcommunities,localNGOssupportedbyUNICEFforfloatingschoolsanitation,and People in Need and other organizations for flood prone sanitation. Support for the present sanitationmarketing scale up of the HandyPod comes from a grant to WaterAid Cambodia from Canada’s GrandChallenges forGlobalHealthFund, forwhichWW!haspartneredwithWaterAid.Conservation InternationalandEngineersWithoutBordershavealsosupportedWW!.

WetlandsWork!partnerswith localcommunitygroupstotrainthemto install thesystems. Insanitation forchallenging environments, WW! works in 10 communities and 2000 households across 10 villages. It hasnumerous potential commercial customers in industries such as garments and silk textiles.WetlandsWork!haspilotedwastewatertreatmentdesignfor49land-basedfloodpronehouseholdsthatsitinriskyfloodwaterforupto6monthsoftheyear.WetlandsWork!’sotherprojectsincludetreatmentdesignsforcontaminatedindustrialwastewaters, residencesandhotels, zooanimalenclosures, andevenwater treatment fornaturalswimmingpoolsthatdonotusechlorine.FinancialSustainabilityWetlandsWork! incurs major costs on research, design, and testing ofvarioussystems,whichincludesstafftime,materialsneededforbuildingprototypes,analysestogaugeperformanceofthesystems,andoverheadcosts.Thefocusofthedesignphaseistobuildasystematalowcost,byusing locally available, natural materials as much as possible, and toensure that maintenance is minimal. The major revenue streams forWetlandsWork!sofarhavebeengrantsfortestingandpilotingofthedesigns,andconsultingfeesfordesignand implementation of the systems. WetlandsWork collaborates with local businesses to supply, sell andinstall the HandyPods. It aims to develop solutions that can be supplied by local businesses in a sustainedfashion. Instead of giving the systems away for free using donor funding, WW! creates and implements

The HandyPod is one of the flagship products of Wetlands Work! It is a simple and reasonably affordable set-up that provides people their own in-house toilet as well as treatment of their wastewater. Wetlands Work!’s simple sanitation system is made up a settling tank and a biofilter. The HandyPod is connected to the toilet in a floating house and captures the sewage treating it to remove pathogens and nutrients. Tests have shown that the system removes high levels of E. coli bacteria from the sewage. The design takes only 2 m2 of space. It relies on gravity flow and an appropriate retention period for anaerobic and aerobic microbial activity, and no energy, electrical, or chemical systems are required. WW! has partnered with a social enterprise, Ideas at Work, that manufactures the HandyPod systems for floating houses.

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HandyPod can help reduce child mortality, gut inflammation and diarrhea caused by the pathogen content of the water that surrounds floating communities

WW! is in talks with the Cambodian Government to adopt smart subsidies in support of sanitation marketing within poor communities

programstoengagelocalentrepreneursinasanitationmarketingapproach.ItalsogeneratesdemandforitsproductbythefamiliesinthevillagesusingtheCommunityLedTotalSanitation(CLTS)process,andengagingchildreninthecommunitiesbyinstallingsystemsinschoolsandcarryingoutsanitationawarenesscampaigns.TheHandyPodisalowmaintenancetechnologyforhouseholdsinfloatingcommunitiesmadeupofaboutUSD140worthoflaborandmaterialsandpricedataroundUSD180.Thesystemisexpectedtolast5-10years,withsome repair of the frame performed as needed, similar to what residents of floating households areaccustomed to doing with their dwellings. The targets of the HandyPod scale up project are residents offloatingcommunitiesaswellassmallbusinessentrepreneurswhowillmakeandmarketqualityHandyPods.The unit economics ofmaking thewater system affordable to this very poor population still remains a keychallenge.Toaddressthis,WW!providesconsumerfinancingthroughacommunityloanservice. ImpactWetland-based treatment systems create a more visually appealing environment by eliminating theappearanceoffloatingsolidwaste,mitigatingodorsand,mostimportantly, loweringhealthriskstoresultingfromcontactofsewagecontaminatedwater.With the implementation of Wetlands Work!, there is increaseddignity for users and improved health in the floating communities,mostofwhom relyon fishing as a sourceof income. TheHandyPodprovides convenience to families,eliminating theneed for longboatjourneys out of the village in search of a private place to defecate.WW! has also developed educational programming for schools andcommunitybuildingsontheimportancesanitationandhygiene.ChallengesandLessonsWetlandsWork!has facedchallenges in raising capital forexpansion.To tackle this issue, ithashiredmorepart-timestaff,whoarepaidlessthantheirfull-timepeers.Ratherthanrelyingheavilyongrantfundingforitsnon-profitsystems,suchasthoseforhouseholdsinchallengingenvironments,WW!isseekingtodevelopandpromoteitsfor-profitsystems,suchasthoseforindustrialeffluents,morestrongly..Anadditionalchallengehasbeen inhaving the statusofa for-profit socialenterprise rather thananNGO,whichcan in somecasesresultinitbeingineligibleforcertainfundingsources.RoadAheadManylargecitiesinIndia,AfricaandAsiaareestimatedtoexplodewithruralmigration over the next decade due to population growth, jobs, changingclimate issues of drought and flood, and exhausted non-productive rurallandscapes. These poor landless migrants will have only the most marginalland and water areas to live. Wetlands Work!’s flood-prone and HandyPodtechnologieswill serve as templates to address such large-scale ‘safewater’problems. When girls begin menstruation, they may stop going to schoolbecausetheschooldoesnothaveappropriatesanitationfacilities.WW!aimstosolvethis issueandprovidetheschoolswithsanitationsystems.WetlandsWork!islookingtoexpandinSEAsiatoMyanmar,Indonesia,MalaysiaandthePhilippines,aswellasother flood prone regions such as Bangladesh. It will apply for the Phase II grant from the CanadianGovernment’s Grand Challenges for another 24 months to scale up its sanitation marketing process andgeographical expansion.WetlandsWork! has been a semi-finalist for several health and innovation awardsincludingtheReed-ElsevierEnvironmentalChallenge,theSuezEnvironmentInstitutedeFrance,andtheCivilSocietyInnovationWASH(Australia)awardsandwillapplytosimilarrecognitionprogramsinthefuture.


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