Business analysis of fecal sludge management

Emptying truck Phnom Penh, Cambodia. Photo from publication.

This study was initiated and funded by the Bill & Melinda Gates Foundation to map the urban sanitation situation and assesses business and operating models for fecal sludge management in 30 cities across 10 countries in Africa and Asia, specifically focussing on the extraction and transportation market segments. The study was carried out in Burkina Faso, Ethiopia, Kenya, Nigeria and Senegal in Africa and Bangladesh, Cambodia, India, Malaysia and Viet Nam in South/Southeast Asia.

Using a common analytical framework, teams of local consultants in each of the ten countries gathered users’ perspectives through 13,000 household surveys and the collected data on the financial and business models of 150 emptying service providers. This report presents the comparative analysis based on these data from those surveys.

A majority of households (5.6 million households) in the 30 cities use on-site sanitation facilities. Households spend only a small percentage of their income, on average less 4%, on emptying services. About one third of surveyed households (2 million households) rely on manual emptying for sludge management.

The total available market for emptying services across the 10 cities is an estimated US$ 134 million.

Some regional trends were seen in the business operations between Africa and Asia:

• average truck capacity in Asia is just over 3 cubic metres and in Africa around 10 cubic metres – tracking the differing average pit volumes (2 cubic metres in Asia vs. 7 cubic metres in Africa)
• age of emptying trucks in Africa is 15 to over 30 years and in Asia between 5 to 10 years
• local assembly of trucks in done in Asia, while businesses in Africa import second hand trucks
• the cost of the trucks is three times higher in Africa than in Asia
• in Asia the operating expenses per truck are about US$ 11,000 and three times that much in Africa
• African businesses spend 76% of their expenses on variable charges such as fuel and maintenance, while their Asian counterparts spend most of their expenses (62%) on fixed costs – mainly staff salaries
• the single largest component of operating costs in Africa is fuel, making up 40% of expenses.
• the annual profit per truck in Africa is US$ 12,000 and is twice that seen in Asia, due to the higher empting fee charged (US$ 60 vs. US$ 28 in Asia) and the larger number of trips per day per truck in Africa.

A general finding was that the size of the fleet was the only factor that had a clear and strong correlation to profitability of the business – two or more trucks were needed to become profitable. There was also a lack of support systems necessary to create sustainable and profitable businesses.

The report presents several recommendations to realise the potential of the US$ 134 million market for emptying services, including:

• supporting the scaling of the single truck operators to become mid to large sized operations;
• better access to finance
• introducing transfer stations to save fuel costs and increasing truck efficiency
• regulating scheduled desludging
• local manufacture or assembly of trucks, especially in Africa
• a more effective supply chain for spare parts
• constructing safe dumping sites for sludge and sludge treatment plants
• enabling sludge reuse

Chowdhry, S. and Kone, D., 2012. Business analysis of fecal sludge management : emptying and transportation services in Africa and Asia. Seattle, WA, USA: Bill and Melinda Gates Foundation. 116 p.; 47 fig.; 22 tab. With bibliography  p. 115-116
Available at: <http://www.washdoc.info/docsearch/title/179741>

The business of the honey-suckers in Bengaluru (India)

A new IRC paper explores some contributions being made by honey-sucker tanker operators — that renders a small-scale sanitation service informally and within the private sector — on waste (faecal) extraction and, in some cases, reuse. Operating outside the legal framework of waste management, this paper provides preliminary insight into the limitations and potentials of the ‘honey-sucker business’ as a sanitation service model, based on selected experiences in Bengaluru (India).

Through semi-structured interviews and the application of Osterwalder and Pigneur’s (2010) business model building blocks tool, this paper reveals that:

1. a two-sided business model is being employed by the business (benefiting both septic tank/ pit owners and farmers);
2. positive outcomes of sludge reuse in farms seem to outweigh negative outcomes; and
3. the honey-sucker business seems to be a financially viable sanitation service model (especially amongst middle-class households with no piped connections).

As an exploratory study, the authors of the paper encourage further research into aspects that interlink with the honey-sucker business to achieve greater clarity on its positive contributions to society, and its prospects of scaling up and replication across different contexts.

Kvarnström, E. et. al., 2012. The business of the honey-suckers in Bengaluru (India): the potentials and limitations of commercial faecal sludge recycling – an explorative study. (Occasional Paper 48) [online] The Hague: IRC International Water and Sanitation Centre. 59 p. : 2 boxes, 2 fig., 5 tab. 39 ref. Available at: <http://www.irc.nl/op48>

Related materials

• A feature story entitled “Productive sanitation – the honey suckers of Bengaluru”, based on the case study, was published in the July 2012 issue of New Agriculturist at
• A presentation on the honey-suckers by Vishwanath Srikantaiah is available on Slideshare.
• IRC’s Joep Verhagen presented the honey-sucker case study during an IRC webinar organised on 2 May 2012. His original presentation is also available on Slideshare.

Peri-urban water and sanitation services : policy, planning and method

Kurian, M. and McCarney, P. (eds.) (2010). Peri-urban water and sanitation services : policy, planning and method. Heidelberg, Germany, Springer. ii, 311 p. : 42 ill. ISBN: 978-90-481-9424-7
Due for publication: Aug 2010
Price: € 129.95
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Peri-urban Water and Sanitation Services, a collection of papers initially developed to support a distance-learning course at UNESCO-IHE Institute for Water Education, Delft, The Netherlands, challenges professionals to pursue water services dilemmas within a broader developmental framework that addresses issues of autonomy and accountability intrinsic to intergovernmental relations.

This book draws on literature at the interface of common pool resources, co-production, new public management and political ecology to discuss important policy concerns that relate to rural-urban transformation, budget support, wastewater reuse and performance benchmarking.

‘This collection of work by some of the most important researchers on socio-ecological aspects of water and sanitation is timely. By highlighting the importance of behaviour, society and ecology on the management of water and sanitation, the editors are highlighting an area of work that has largely been neglected. For instance, why is it that so many technical fixes exist, and yet in practice, few successful projects are ever brought to scale?’ Mark Redwood, Program Leader, Urban Poverty and Environment Program, International Development Research Centre (IDRC), Ottawa, Canada.

‘With global urban population now larger than rural, opening of public-private relationships and opportunities, and the globalisation of technology and capital, can needs of citizens for clean and affordable water and sanitation services be met? This book argues that the terrain is rapidly changing and provides an evidence-based approach not only to technology but also to governance systems that mediate access to public services.’ Gita Sen, Professor, Centre for Public Policy, Indian Institute of Management, Bangalore, India.

Greywater use in the Middle East : technical, social, economic and policy issues

Greywater use in the Middle East : technical, social, economic and policy issues
Edited by Stephen McIlwaine and Mark Redwood
Practical Action/CSBE/IDRC 2010
ISBN 978-1-85339-698-4
e-ISBN 978-1-55250-466-6
200 pp.

View online and download full publication

In water-scarce areas of the Middle East, greywater (household wastewater excluding toilet waste) is commonly used by poor communities to irrigate home gardens. This both supplements the water available to the household and improves food security.

This book draws together material presented at a conference in Jordan in 2007, and examines the technical approaches to treating and using greywater for irrigation, including its associated risks to health and the environment. It discusses many of the non-technical issues that influence effectiveness and sustainability of greywater use. It also takes a hard look at economic issues, arguing that more clarity and consistency from policymakers is essential if low-income, water-stressed communities are to make better and safer use of their existing water supplies. The book concludes by offering suggestions for where donor efforts and research could best be focused in the near future.

Greywater use in the Middle East is important reading for researchers, donors, implementing agencies, and policymakers, in the fields of water supply, water reuse, livelihoods and agriculture.

Wastewater irrigation and health : assessing and mitigating risk in low-income countries

Wastewater irrigation and health : assessing and mitigating risk in low-income countries
Edited by Pay Drechsel, Christopher A. Scott, Liqa Raschid-Sally, Mark Redwood, and Akiça Bahri
Earthscan/IWMI/IDRC 2010
ISBN 978-1-84407-795-3
e-ISBN 978-1-55250-475-8
432 pp.

View or download full publication

In most developing countries wastewater treatment systems have very low coverage or function poorly, resulting in large-scale water pollution and the use of poor-quality water for crop irrigation, especially in the vicinity of urban centres. This can pose significant risks to public health, particularly where crops are eaten raw.

Wastewater Irrigation and Health approaches this serious problem from a practical and realistic perspective, addressing the issues of health risk assessment and reduction in developing country settings. The book therefore complements other books on the topic of wastewater which focus on high-end treatment options and the use of treated wastewater.

This book moves the debate forward by covering also the common reality of untreated wastewater, greywater and excreta use. It presents the state-of-the-art on quantitative risk assessment and low-cost options for health risk reduction, from treatment to on-farm and off-farm measures, in support of the multiple barrier approach of the 2006 guidelines for safe wastewater irrigation published by the World Health Organization. The 38 authors and co-authors are international key experts in the field of wastewater irrigation representing a mix of agronomists, engineers, social scientists and public health experts from Africa, Asia, Europe, North America and Australia. The chapters highlight experiences across the developing world with reference to various case studies from sub-Saharan Africa, Asia, Mexico and the Middle East. The book also addresses options for resource recovery and wastewater governance, thus clearly establishes a connection between agriculture, health and sanitation, which is often the missing link in the current discussion on ‘making wastewater an asset’.

Integrated urban water management : humid tropics

Parkinson, J.N., Goldenfum, J.A. and Tucci, C.E.M. (eds) (2010). Integrated urban water management : humid tropics. (Urban Water series – UNESCO-IHP). Paris, France, UNESCO / Taylor & Francis. 182 pages, figures, tables, boxes, glossary, index, references. ISBN 978-92-3-104065-8
Price: 35,00 € €
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Excess water in the urban environment leads to flooding, which in turn causes structural damage, risks to personal safety and disruption to city life. Water is also a major contributory factor in disease transmission as well as being the transport medium of many pollutants. These problems are of increasing concern due to climate changes and are particularly apparent in the humid tropics.

Integrated Urban Water Management: Humid Tropics – the output of a project by UNESCO’s International Hydrological Programme on the topic – focuses on engineering aspects related to water supply, wastewater and stormwater management in the humid tropics. Flood control is dealt with, focusing on reducing vulnerability to flood disasters in urban areas. The book also addresses environmental health concerns related to the different components of the urban water system and proposes strategies for their control. It illustrates different aspects of integrated water management in the urban environment by drawing upon a set of case studies – predominantly from South America.

Strengthening capacities for planning of sanitation and wastewater use

Smits, S., Da Silva Wells, C. and Evans, A. (2009). Strengthening capacities for planning of sanitation and wastewater use : experiences from two cities in Bangladesh and Sri Lanka. The Hague, the Netherlands, IRC International Water and Sanitation Centre (Occasional Paper Series 44). 56 p. ; 5 fig., 6 tab. 37 ref.
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Executive Summary

It is well-known that many peri-urban communities use wastewater (often untreated) in agriculture. Although wastewater-dependent agriculture provides livelihoods to farmers, there are associated health and environmental risks. The roots of this situation lie in the poor sanitation in cities where part of the population doesn’t have access to basic sanitation services at all, where domestic wastewater is not properly collected or is discharged into open water bodies without any treatment, and where industrial discharges and dumping of solid waste often add to the pollution problem.

The basic premise of the Wastewater Agriculture and Sanitation for Poverty Alleviation (WASPA) in Asia project is that by integrated planning both the lack of sanitation services and the health and environmental risks associated with wastewater use in agriculture can be addressed simultaneously. The idea is to improve conditions along the entire sanitation chain (from household latrines to collection, treatment and reuse of wastewater), while maintaining the characteristics of wastewater valued by farmers, such as nutrient content.

This concept was tested in two towns: Rajshahi in Bangladesh and Kurunegala in Sri Lanka. The project worked through Learning Alliances, composed of local stakeholders, including farmers, residents, small industries and local authorities. With these Learning Alliances, the current situation was analysed, and integrated plans for improvement were formulated and executed in a collaborative manner with a range of stakeholders. This document provides an overview of the experiences of the project and provides a critical reflection on the WASPA concept and its applicability.

The project found that the sanitation situation in both cities was less severe than originally hypothesised. Lack of access to basic sanitation only contributed in a minor way to wastewater flows. Instead, other sources of pollution were identified, such as discharges from small industries and leakage from poorly maintained or inadequate septic tanks. At the same time, the impacts of wastewater agriculture on crop yields and health risks were less than expected.

The situation also proved to be more complex than originally thought, necessitating that a broader range of stakeholders be involved in the identification and implementation of solutions. The multi-stakeholder approach of Learning Alliances and participatory planning cycle provided a useful framework for addressing this complex problem. It allowed examination of the entire sanitation chain and identification of potential strategies for
improvements along the entire chain. In addition, it provided a way of gradually building up relations between stakeholders in a context characterised by institutional fragmentation, conflict and poor accountability. Over time, relations improved and more integrated planning emerged.

A potential drawback to the approach is that stakeholders tend to identify isolated and conventional actions to address the situation, and thus need strong facilitation and increased knowledge to arrive at appropriate solutions. Also, transaction costs of the approach are high, in terms of getting the teams in place, starting up the multi-stakeholder process, and getting stakeholders to carry out a joint planning exercise and subsequently implement their plans. However, the project demonstrated that integrated, joint planning is important for addressing complex problems that span sectoral, administrative and social divides and that, ultimately, the high transaction costs are justified.

History of Delhi Water Supply – interactive map

The Centre for Science & Environment (CSE) in India has produced an interactive map depicting three stages in the history of the capital Delhi’s water supply: 1940-1970, 1970-2000 and 2000-now. The map depicts the locations of raw water intake works and water and wastewater treatment plants, together with their production capacities.

Web4Water

Web4Water is a web site of UK media company Faversham House Group combining information from its water and environment publications: Water & Wastewater Treatment magazine (WWT), WET news, and edie.net. Key site features include industry news, technical articles, online conference presentations, water jobs and a supplier database. The main focus of the site is on the UK water industry.

Akvopedia Sanitation Portal updated

Akvopedia, the open water and sanitation resource of Akvo.org, has updated its Sanitation Portal with over 50 technologies from the Compendium of Sanitation Systems and Technologies, published by SANDEC/EAWAG and WSSCC in 2008.