INDIA: Integrated Approach to Universal Urban Sanitation

Historically, the focus of policy and public investments has been on sewage treatment plants (STPs) and network systems for urban areas. However, the sewage treatment capacity created is only a third of what is required, and even this limited capacity is under-utilized since networks are incomplete, resulting in only about 20% of sewage generated in urban India being treated before discharge. Public-private partnerships can play a key role in addressing the urban sanitation infrastructure deficit. In 2016 the World Bank estimated a requirement of US$ 49 billion for a combination of network, non-network, and treatment systems and other enabling investments required over the period 2012-32.

This activity explored the potential to tap private finance for collection and treatment of septage and construction and operation of sewage treatment plants (STPs), including the enabling conditions required to realize this potential. It also engaged with both State and city governments to develop a planning framework that was relevant at different levels of implementation. Ultimately, the PPIAF intervention supported the introduction of a phased approach to private sector participation in implementing an integrated urban sanitation approach in Kerala, which will be used as a learning/demonstration for other States.

At the end of this activity, a report on diagnostic on technical interventions for sanitation improvement and recommended options was produced and disseminated with the Government. Additionally, estimates of capex and opex for different options, prioritization and phasing of investments, willingness to pay, and opportunities for private sector involvement were also prepared. A report was produced giving the different options for strengthening institutional arrangements, including the role of the private sector, pros and risks of different options, and a roadmap for feasible options. Finally, a list of potential PPP projects was identified and could serve as the basis for the next phase of this project.

The project led to the potential adoption of Kerala of a policy on human excreta and liquid waste management, which is still under review by the Government. A draft bye-law for municipalities has also been prepared.  These provide the framework for urban sanitation investments in the state’s budgetary outlays and implementation of a program to improve urban sanitation.