Vedanti Kelkar,
Research Associate, ADBI
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the
governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB
official terms.
Credits: World Bank Report, Consumer research for poor sanitation in Uttar Pradesh
Reliance on full-cost recovery through user-charges of large-scale solutions is leading to slow rate of
return thereby demotivating the movement of sanitation implementation
While most cities in Asia have septic tanks & pit latrines, many have begun to rely on planned WWT
systems
Quick Facts:
- Dumaguete is located Negros Oriental Province
- Population: 130,000
- FSM Plant: Planning initiated in 2006 and operational in 2010
- City-wide FSM system that de-sludges most of the septic tanks in 5 year rotating Dumaguete
cycle
- Program was implemented in parallel to sanitation improvements by the
government
Intrinsic value of
Internal savings through co-
Initial CAPEX (Only major cost) & project – improved
treatment efficiency
other O&M COSTS sanitation
+
Savings from program
efficiency
Internal effect savings
+
Property Property Livelihood Health Community
Spillover effect costs of benefits
values taxes development
True value of the project FSM program valuation shows total project value is i) intrinsic value
plus, ii) any internal benefits plus, iii) any spillover effects benefits
Thus over 10 years, 558,000 USD = This far exceeds the initial
investment of 500000
So, in this case property values from 6 properties sum up to more than 500K$ and surpass the initial capital
investment of the septage treatment facility of 500K$.
Key Takeaways:
2. Sustainability of FSM projects is widely measures by policy-makers through ex-ante and ex-post evaluations
from the functioning of project opposed to the tertiary impact on the community
3. With better understanding of the spillover effects, governments can be persuaded to act in a decentralized
fashion with the involvement of multiple stake holders including PPP mechanisms which may prove
attractive