ABSTRACT
In Khulna, Bangladesh, mechanical faecal sludge (FS) emptying and transport (E&T) service is provided by community development committees (CDCs) and the Khulna City Corporation (KCC). Without considering capital expenditure and depreciation, financial analysis for one year revealed that a CDC-1 m3 vacutug made a profit of Bangladeshi taka (BDT) 145,780 (USD $1746) whereas a KCC-2 m3 vacutug was in the loss of BDT 218,179 (USD $2613). There is a need to engage the private sector for sustainable service provision. Some of the key elements of enabling the environment for private sector engagement are policy/strategy, institutional and regulatory framework, implementation capacity, and financial viability. Existing policy/strategy/frameworks acknowledged the need and suggested plans for private sector engagement, and decentralised authority to city corporations. With increasing private-public partnership projects and collaboration in the sanitation sector, capacity of the KCC and the private sector are increasing. Financial viability of the FS E&T business is primarily dependent on the number of trips and the emptying fee. For the E&T business to be financially viable, a 2 m3 vacutug should make six trips/day (internal rate of return (IRR)-13%, discount rate-6.5%) with an emptying fee of BDT 750 (USD $9)/m3. Despite the lack of operative guidelines for faecal sludge management (FSM), enabling the environment for private sector engagement in FS E&T business in Khulna seems favourable.
Subject(s)
Private Sector , Sewage , Bangladesh , Cities , SanitationABSTRACT
A majority of the world's population use onsite sanitation systems, which store or treat excreta close to where it is generated. Sludge from these systems needs to be managed through a series of stages, known as the sanitation value chain. There is a huge diversity of service providers, not only within each part of the chain, but also along the chain bridging the different components. These service providers are linked not only by the flow of materials, but also by the transfer of money. Therefore for this system to be considered financially sustainable all services from the toilet to reuse or disposal need to be considered. A tool has been developed (eSOSView™) to simulate, evaluate, and optimise the financial flows along and within the sanitation value chain. In this paper eSOSView™ was tested, validated (using existing data), and piloted (including data collection). This paper demonstrates how eSOSView ™ can be used to evaluate different financial flow models, to assess financial sustainability in different parts of the sanitation value chain and optimise the financial sustainability along the sanitation value chain.
