Brave new world Global water 2012

Cavalieri Hotel, Rome

Presented by Global Water Intelligence and the International Desalination Association ROME Global water summit 2012 Brave new world Brave new world

Water performer of the year

What are the best utilities doing to improve their performance? Which entrepreneurs are making the biggest impact on the way the world of water works? We shortlisted five water sector performers from Foreword around the world that have made a difference. Each initiative is presented in the quick-fire 8 minute Pecha Kucha format, followed by questions from panel. The audience then votes for the 2012 Water Performance Initiative Everyone is looking for a better story for ironically). Aldous Huxley also used the phrase “Water performer of the year” event. For Genomics, we’re working on all of these,” he of the Year.

Speakers include Patrick Lorin, General Director, and Hasmik Harutyunyan, Public Relations Director, Armenian Water & Sewerage Com the water sector. Other industries seem to with irony for the title of his 1932 dystopian this, five utilities were selected from around the explained. It really is a brave new world and pany Fahad Aljurish, Senior Manager, IT, The National Water Company, Saudi Arabia Panel members: Oscar Chu, Deputy General Manager, Olivia Jensen, Global Water Intelligence The Macao Wat er Supply Co., Ltd Taqsem Khan, Dhaka WASA Gérald Razafinjato, CEO, Sandandrano, Madagascar Khoo Teng Chye, Centre for Liveable Cities Jérôme Douzi read like fairy tales: the telecoms sector, for novel. world which had done most to improve their water is at the very centre of it. ech, CEO, Nuove Acque SpA [ ] example – 30 years ago it was just another performance over the past year. For me it was We chose the title not for its irony (although Dr Venter also agreed to take part in the dull, boring utility, with ageing underground the most uplifting session of the whole event: Water performer of the year, pp 36–51 some cynics might see it that way). We chose “Reuse: Defying the limits of growth” infrastructure struggling to keep up with the here are real transformation stories to inspire it because we wanted to focus on a most session which begins on page 100. The idea demands of the modern economy. Then came the whole industry. The Armenian Water and A brave new world for water excellent future for the water industry. Instead behind this session is that the global economy With all of the challenges facing the water and wastewater sectors, we sometimes lose sight of the mobile phones, liberalisation, the internet, Sewerage Company was the winner. If you read bigger picture. of shipwrecked sailors we brought together is increasingly coming up against the limits of In this unique experiment we bring together an illustrious panel of experts to discuss the question: broadband – and suddenly it was transformed one story in this book read that one. what is our perfect water future?

450 industry leaders: ministers, chief executives, natural resources. In fact this may be the most Each panellist was asked to outline from being a scrappily dressed servant of what their dream water world would brilliant scientists and engineers. The Rome This is followed by a section entitled “A brave important reason for the current economic look like in 25 years, and to spell out a the economy to the major driving force for master plan to make Chaired by Speakers includ Roger Harrabin, it happen. The floor e Gérard Payen, President of AquaFed BBC Environment Analyst Cavalieri Hotel became Prospero’s cell for two new world for water”. It brings together five malaise. Water could be the vector for the [ was then open to Dr Johan Groen, Chief Technology Officer, Xylem ] Julia Bucknall, Water Anchor, World Bank questions. growth. The electricity and gas sectors have Shayo Holloway, Group Managing Director, Lagos State Water Corporation days as we shared our vision for a better future industry luminaries: Gérard Payen of Aquafed, circular economy, providing the medium also been transformed beyond recognition, for the water industry. Dr Johan Goen, who is Chief Technology Officer through which energy and other valuable with liberalisation, combined cycle turbines, Brave new world for water, pp 52–63 at Xylem which is probably the world’s largest resources are recovered. unconventional resources, and the advent of Our three plenary keynote speakers were the water technology company; Julia Bucknall who is renewable energy. former Managing Director of the International This is followed by sections on “Securing the the Water Anchor at the World Bank, and Shayo The 2012 Monetary Fund, Dr John Lipsky; Dr Mihir Middle East’s water future”, inspired by the Global Water The water industry is the only remaining Holloway, who leads one of the world’s largest Awards Shah, who is responsible for water resources changes wrought by the ; a section The best of the best in the international utility not to go to the ball. There may be water utilities, the Lagos State Water Corporation. water & desalination industries Award categories Water company of the year at India’s powerful Planning Commission; and entitled “Inspiration from industry” looking Desalination company of the year Water deal of the year technological developments such as smart Public water agency of the year Water reuse project of the year Desalination plant of the year Dr Frank Rijsberman, who was at the time The Global Water Awards section highlights at how the municipal sector can learn from Industrial water project of the year Water technology company of the year networks, advanced membranes, and new Water performance initiative of the year Water technology idol Awards presented by head of the Water Hygiene and Sanitation the shortlisted and winning companies industrial water users; and a section entitled “10 [ Dr Craig Venter ] biological processes every bit as exciting as initiative at the Gates Foundation. Lipsky’s role nominated for this year’s awards. Again it is questions on the future of desalination”. what we have seen in the other “utility” sectors, Christopher Gasson was to pass on his insight into the future of a great inspiration, although I am very much Also included is a report of this year’s “Water but lack of investment and lack of customer Global Water Awards, pp 64–95 Publisher, Global Water Intelligence the world economy and water’s place within disappointed that we were not able to get technology idol” competition, which pits five engagement has meant that none of these that. Although the outlook for the economy permission to reproduce Dr Craig Venter’s new water technologies against each other and have been pushed to their furthest extent. Reuse: Defying in general is not great, water outperforms, he speech which introduced the event. Venter was a panel of judges. the limits of of public finances Beyond the crisis Instead the challenges the industry is facing opined, because of the growing demand for instrumental in cracking the human genone growth The crisis in public finances is the biggest The last two sessions I took part in. One on Speakers include As we move into the future, how do we Craig Venter, Founder, Chairman and President of J. Craig Venter Institute and issue facing the global deal with the issue of a shrinking founder and CEO of Synthetic Genomics, Inc. water sector today. 90% seem to loom ever larger: scarcity; the lack of investments with a dependable yield. Shah gave sequence and has since developed the concept Katja Hansen, Senior Researcher at the resource base? Cradle to Cradle Chair, Erasmus University of water infrastructure Martijn Kruisweg, Lead, Global Eco- efficiency Improvement Program, AkzoNobel is financed by public “The winning formula” which looks at how To answer this question, Markus Zils, Partner, McKinsey authorities and many are we have gathered being dragged down Keynote address by safe drinking water and sanitation among low an uplifting vision of how India’s water sector of synthetic genomics. In 2010 he announced Dr John Lipsky water technologists, by growing debts and industrialists and stagnant revenues. the public and private sector can work together, visionaries who are working towards the John Lipsky, Former income communities; the steady decay of the will be transformed by new policies over the that he had created the world’s first synthetic idea of a circular Managing Director of economy based on Chaired by the IMF, examines the and the other asking the question “When will recycling and reuse. Usha Rao-Monari of the current economic International Finance Corporation outlook, with particular distribution networks beneath our feet. next decade. Rijsbermann, meanwhile, outlined lifeform, and has since then been looking at [ ] emphasis on the near- term fiscal challenges, water and money meet”. the debate around budgetary austerity how the richest charitable foundation in the how to put this technology to good use. “If and the implications on investment. The idea of this year’s Global Water Summit Defying the limits of growth, pp 100–109 world is approaching hygiene and sanitation we can’t provide enough food, water, fuel and We are still many years away from our brave was to imagine a different narrative for Dr John Lipsky, pp 16–23 in low income countries. It wants to reinvent medicine for 7 billion people, how are we going new world, but we are definitely developing a the water industry: a brave new world. The the toilet: find new technologies which will to do it in 11 years for 8 billion people, and so new narrative for the sector. Come and join Securing the Middle phrase comes from Shakespeare’s Tempest: East’s water future A wind of change has blown across the Middle Planning India’s water future make good sanitation accessible to all without on? This equation is pretty simple and perhaps us in Seville on 22nd and 23rd April 2013 East since January 2011. Some countries in the

With the advent of India’s 12th Five Year Plan, Dr Mihir Shah explores the changes region have new governments in 2012, while the country’s water management is facing a brought about in this new approach Miranda remarks, “O brave new world, that has others are making quieter changes. major paradigm shift. to water management. the need for sewer networks and centralised oversimplified, but fuel = water = food, and we for the 2013 Global Water Summit. The In this session, we ask a such people in it,” as she watches the antics of panel of senior officials from the Middle East treatment works. These presentations are have to solve every part of this equation. We theme is “Connecting with success”: we will how the management of water resources will the shipwrecked sailors brought to her shores develop and change in carried out in full from page 16 of this book. have to find new sources of fuel, new ways to be looking for those unexpected connections the years to come. Speakers include HE Mohamm ed Al Mahrouqi, Chairman, Public Authority by her father. Brave in that Elizabethan sense for Electricity and Water, Dr Rafiq Hussei ni, Deputy Secretary General, Union for the Mediterranean Chaired by Shannon McCarthy Hon. Miguel Moratinos, Special Advisor, Qatar N of The Middle East Desalination produce and clean up water, and new ways to Food Securit ational between industries, ideas and people that will y Program Research Center Dr Latif Rashid, meant “most excellent” (though she used it The next chapter offers inspiration from the Senior Advisor to the President of Iraq [ ] Keynote address by produce food, and to some extent at Synthetic Dr Mihir Shah help to find this better story for water. Middle East’s water future, pp 110–121 Dr Mihir Shah, pp 24–29 Published by: Publisher: Advertising sales manager: Head of research: Brave new world acknowledgements: Media Analytics Ltd. accepts no liability or responsibility whatsoever for any loss or damage suffered by the reader Inspiration Reinventing the toilet: Media Analytics Ltd. Christopher Gasson Jessica Underwood Jablanka Uzelac Editor: Charlotte Massey or any other user of the information contained in this The future of global sanitation The Jam Factory [email protected] junderwood@ [email protected] Contributors: Hector Brown, Emilie Filou, Clara González- from industry publication. Unauthorised distribution or reproduction As pressure on the world’s water resources grows, 27 Park End Street industry is being forced to be more proactive in 2.6 billion people around the world do not have globalwaterintel.com Manchón, Barbara Korell, Heather Lang, Jelena Stanic and addressing water-related challenges. Securing access to a sanitary toilet, and half the hospital Events co-ordinator: Key account manager: current and future water needs while meeting beds in the developing world are filled with of the contents of Brave new world is strictly prohibited Oxford, OX1 1HU increasingly tight regulations is key to patients suffering from the diseases this causes. James Williams obtaining licences to operate. GWI editor: without prior consent of the publisher. But to develop Chris Bowling Dominique Winpenny In this session, six water traditional sanitation for specialists share their a problem of this scale experiences of innovation Layout & diagrams: Charlotte Massey, Matthew Daggitt Speakers include requires huge amounts (dwinpenny@ anager, NieuWater B.V. [email protected] Ian Elkins in industry, with stories ndaal, General M Gerrit Veene T + 44 (0)1865 204208 onment of infrastructure, and Rossana Brantes Abarca, Public Policy and Envir © 2012 by Media Analytics Ltd. All rights reserved. No of best practice from the er Commission (COCHILCO) . Issues Analyst, The Chilean Copp huge amounts of water oil & gas, mining, chemical, Robert W. Bailey, Water President, CH2M Hill mercial The Gates Foundation globalwaterintel.com) and Maria Wang Dr Ilham Kadri, General Manager EMEA and Com [email protected] refining & petrochemical, Director EMEA, Dow F + 44 (0)1865 204209 nager, Ondeo Industrial believes it has found the Sales & marketing part of this publication may be photocopied, reproduced, and food & beverage sectors. Cristina Viganò, Proposal Ma Keynote address by y of Solutions, Chaired by Elise Maur t Director, Dr Frank Rijsberman solution: to reinvent Laurent Panzani, Global Food & Beverage Marke Ondeo Industrial Solutions ies [ ] the toilet. Conference photography: John Deputy [ ] Veolia Water Solutions & Technolog Registered company director: WDR editor: retransmitted, put into a computer system or otherwise number: 4412085 Emma Welsh Tom Pankratz Conference organiser: Chris Bowling redistributed without prior authorisation from Media Dr Frank Rijsberman, pp 30–35 [email protected] [email protected] Advertising: Jessica Underwood Analytics Ltd. Inspiration from industry, pp 130–143

2 Brave new world Christopher Gasson // Foreword 3 ROME Global water summit 2012 Brave new world About the organisers

About the organisers

The Global water summit 2012: Brave new world was produced by Global Water Intelligence and the International Desalination Association.

Global Water Intelligence Global Water Intelligence is a monthly international private water companies. The subscription funded magazine providing analysis “GWI Desalination Project Tracker” and “Reuse and strategic data on the international water Tracker” are GWI ’s monitoring services charting market. The publication boasts a network of the progress of international desal and reuse specialist water and financial journalists, based projects. in country with access to exclusive regional data. Desalination projects are also covered in detail GWI has established itself as the market leading on our web venture www.desaldata.com. publication for developers, suppliers, financiers, Featuring details of over 15,000 plants the site is governments, utilities and municipalities seeking a constantly updated source of news, technical information and analysis on water projects with info and company data. an element of private sector participation. In addition, GWI publishes a number of specialist GWI ’s wide coverage helps readers interpret and in-depth reports on specific areas of the the changes occurring in the global water water industry, and on specific geographical market and identify investment opportunities areas. For more information on these reports, created by these changes. Tables, charts, graphs and on our organisation as a whole, please visit and diagrams are used to illustrate project our website: structures and investment requirements as well www.globalwaterintel.com as provide essential financial data on the major

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The International Desalination Association • International and regional conferences,

is focused on desalination and water reuse seminars and exhibitions.

technology worldwide and is committed to Website access: educating the public, specialists and students through printed material, multimedia, • The largest database devoted exclusively to

conferences, and graduate level scholarships. desalination, people, companies, plants and much more. The IDA also organises regional workshops and • Recent Congress proceedings. seminars on specific topics relevant to the local member needs such as the current IDA/GWI • Links to corporate member sites and related Conference. The IDA presents the desalination organisations. perspective when participating in other water • Employment listings. conferences. • Expert opinions on technology and future IDA members get direct access to the trends. desalination community through: • Member directory. • Publications including Newsletters, • Calendar of worldwide events. Membership Directory, Desalting Plants IDA members also receive discounted Inventory, ABC’s of Desalting, Congress conference registrations, exhibition fees and Proceedings and Quarterly subscription to publication prices. D&WR Magazine. To join the IDA, go to www.idadesal.org

4 Brave new world About the organisers 5 Innovative Solutions for Sustainable Water Management

Innovation The accumulated experience of this company in project development Projects Development and construction creates a synergy Design allowing for the permanent improvement of processes and Procurement knowledge. Always bearing Construction in mind that our top priority is the delivery of high quality projects Operation with cutting-edge technology.

www.abengoa.com S e rv Global water summit 2012 ic ROME e | Brave new world V a lu e | R e s p o n s ib i l i t Contents y Foreword 2 Christopher Gasson About the organisers 5 Zero Liquid Contents 8 Discharge Beyond the crisis of public finances 16 Dr John Lipsky Planning India’s water future 24 Dr Mihir Shah Veolia’s highly integrated ZLD systems allow industrial Reinventing the toilet: The future of global sanitation 30 clients to Dr Frank Rijsberman Water performer of the year 36 minimize waste Armenian Water and Sewerage Company 38 volumes while Patrick Lorin Hasmik Harutyunyan producing quality National Water Company, Saudi Arabia 40 water for reuse Fahad Aljurish through evaporation and Macao Water Supply Co., Ltd 44 crystallization. Oscar Chu Sandandrano, Madagascar 46 Gérald Razafinjato Nuove Acque SpA, Italy 50 Veolia is providing sustainable water Jérôme Douziech management to Shell’s Pearl GTL www.veoliawaterst.com complex through ZLD technologies A brave new world for water 52 Veolia applied the full scope of its Gérard Payen, President of AquaFed 54 project management and water Dr Johan Groen, Chief Technology Officer at Xylem 56 technology expertise to design and build a 45,000 m 3/d wastewater Julia Bucknall, Water Anchor at the World Bank 58 treatment plant at Shell’s complex Shayo Holloway, Group Managing Director at the Lagos State Water Corporation 60 which produces 140,000 barrels per day of Gas-to-Liquid products. Questions from the audience 62 The 2012 Global Water Awards 64 WINNER Welcome to the 2012 Global Water Awards 66 Global Water Awards 2012 Water company of the year 67

8 Brave new world // Contents ROME Global water summit 2012 Brave new world www.acciona.com

Desalination company of the year 70 Water deal of the year 73 Public water agency of the year 76 Water reuse project of the year 78 Desalination plant of the year 82 Industrial water project of the year 86 Water technology company of the year 90 Water performance initiative of the year 94 Water technology idol 94 A disruptive future: How the uncertainties of today are forging innovation 96 Dr David Lloyd Owen Reuse: Defying the limits of growth 100 Martijn Kruisweg Katja Hansen Dr Markus Zils Dr Craig Venter Securing the Middle East’s water future 110 HE Mohammed Al Mahrouqi, Oman’s Public Authority for Electricity and Water 112 Dr Rafiq Husseini, The Union for the Mediterranean 114 Hon. Miguel Moratinos, Qatar National Food Security Programme 116 Dr Latif Rashid, Senior Advisor to the Iraqi President 118 Questions from the audience 120 10 questions on the future of desalination 122 SOLUTIONS DON’T ALWAYS Neil Palmer DROP OUT OF THE SKY Michel Canet We are working to ensure that water shortages cease to be a problem. Dr Richard Stover And we do this as world leaders in water treatment, by developing, Lance Johnson building and operating drinking water, sewage and desalination plants. Dr Corrado Sommariva Because it’s necessary to be present not just on the fi ve continents but also in the fi ve oceans. Inspiration from industry 130 TRANSPARENT SOLUTIONS TO WATER PROBLEMS. Municipal wastewater reuse in the oil & gas industry 132 Gerrit Veenendaal Water management in Chilean copper mining 134 Rossana Brantes Abarca WaterMatch – Find your water reuse partner 136 Robert W. Bailey RENEWABLE ENERGIES WATER INFRASTRUCTURE 10 Brave new world // Contents el realito AF 21x25.pdf 1 28/06/12 19:15

ROME Global water summit 2012 Brave new world

Municipal wastewater reuse in the chemical industry: A PPP success story 138 Dr Ilham Kadri Advanced water reuse in the oil refining & petrochemical industry 140 Cristina Viganò Water for food & beverage: Market trends & opportunities 142 Laurent Panzani Water technology idol 144 Sylvan Source Inc: An innovative water processing platform 146 Laura Demmons Selenium Ltd: SELDOX™ enabled membrane technology 150 Kris Looney INPHAZE: Online membrane fouling monitor 153 Professor Hans Coster C Porifera: Advanced forward osmosis membranes 156 M Dr Olgica Bakajin Y Ahlstrom: Disruptor® electroadsorptive water filtration 159 CM Rod Komlenic MY

The winning formula is working together 162 CY

John Frederick Ringham CMY Oded Fixler K Patrick Couzinet Eduardo Ismodes Cascon Ramon Alikpala Dr Dirk Wittenberg Questions from the audience 172 Will water and money meet? 174 Reducing losses, expanding coverage & financing new waters: Lessons from India 176 Rajiv Mittal Financial sustainability in serving all communities: The Ohio model 178 Steve Grossman Mobilising domestic finance in emerging economies 180 Bob Sheppard Identifying growth opportunities in the water sector: The investor’s perspective 182 Deane Dray Questions from the Chair 184 Company directory 186 The GWI conference team 200 12 Brave new world // Contents

Beyond the crisis of public finances The crisis in public finances is the biggest issue facing the global water sector today. 90% of water infrastructure is financed by public authorities and many are being dragged down by growing debts and Keynote address by stagnant revenues. Dr John Lipsky

John Lipsky, Former Managing Director of the IMF, examines the current economic outlook, with particular emphasis on the near- term fiscal challenges, the debate around budgetary austerity and the implications on investment. ROME Global water summit 2012 Brave new world Beyond the crisis of public finances

Introduction The current economic climate Audience response: How do you view the IMF’s global economic forecast? The last time I was in this hall was exactly five Let us begin with the economic outlook. years ago, for a meeting of the International The timing of this meeting is excellent. Just Energy Forum. This forum brought together two weeks ago, the International Monetary Too pessimistic: 17.2% producers from the Organisation of the Fund (IMF) and World Bank held their spring Petroleum Exporting Countries (OPEC) and meetings, and the IMF issued an update to its About right: 55.9% consumers from the International Energy World Economic Outlook forecast. That forecast Agency, at a time when the price of petroleum called for global growth of 3.3% this year and was headed for then record highs. The 3.9% next year, an average of around 3.6%. This How do you view discussion was, let’s put it this way, tense. is compared to 3.9% in 2011 and 5.3% in 2010. the IMF’s global If we look at this year and next year’s average of Nevertheless, we can draw a conclusion that economic forecast? 3.6%, and then we look at the 30-year average, is relevant for today’s discussions: it is possible it is also 3.6%. So here we are, six years after the to envision a world that is not completely beginning of a financial and economic crisis, dependent on fossil fuels for energy. However, Too optimistic: 26.9% with very large amounts of excess capacity in it is not possible to envision a world without all the major advanced economies, and the clear water supplies. Thus, the Summit’s subject forecast is for growth of only about the long- is eternal. Hopefully, we will be able to draw term average. some positive and constructive ideas from our Source: GWI deliberations. I would like to take a moment to see what you than stellar and the outlook is moderate. Even all think. Do you think the IMF’s forecast is: I will deal with three topics in my remarks in China for example, the forecast is for 8.2% today. First, I will provide a view on the global • Too pessimistic growth this year and 8.8% growth next year, economic outlook. Then, considering that the • About right against a six-year average of 9.2%. overall topic of this summit is “where water • Too optimistic In other words, even the most strongly growing meets money”, I will address the near-term emerging economies appear to be slowing fiscal challenges, trying to provide some According to the audience, the IMF’s global The current somewhat. And this is an environment that perspective on the current debate about the forecast is about right (see figure top right). is not devoid of significant risks. After all, the need for budgetary austerity in most advanced Let me draw out some of the implications of European crisis continues to afflict markets and outlook appears economies. Finally, I will examine longer-term that outlook. Let us take the six-year period economies. Once again we are experiencing a fiscal issues – reflecting the long-term nature as a whole, 2007/2008 to 2013, from both rise in energy prices, as was the case in 2011. to underscore of most of the investments that you will be the past and the IMF forecast, and look at the The prospect of political or even military considering in your own work. performance of the advanced economies as a whole. Six years may be considered a instability in the Middle East is underpinning earlier concerns meaningful span of time, even though it the strength of energy prices, despite the does include the downturn. Over the six-year relative moderation, and economic growth that the continues to be an issue. Dr John Lipsky period, growth in the advanced economies will have averaged about 0.7%. A pretty dismal recovery from A world-renowned economist, John Lipsky’s cooperation during a period of historic restart growth and to implement important performance. Growth in the will Challenges of the crisis upheaval for the global economy. Lipsky’s reforms. Mr Lipsky’s current professional have averaged just under 1%, in the Euro area – distinguished career in both the private The challenges are clear: the current outlook the 2008/2009 accession as the IMF’s Acting Managing activities include serving as Co-Director 0%, in the UK – 0%, in – 0%. and public sectors has earned him the appears to underscore earlier concerns that Director came at a time of particular stress of the Aspen Institute’s Program on the respect and regard of many leaders around So after an extraordinary period of weak the recovery from the 2008/2009 financial financial crisis the world. His service at the International for European economies, institutions and Global Economy. He also serves on the economic performance, we all agree that the crisis was going to be protracted and difficult. Monetary Fund coincided with the most financial markets. He led the IMF delegation Executive Committee of the National Bureau outlook is just no better than back to the long- In fact, there are two aspects that you should was going to be challenging era for the international at the 37th G8 summit held in May 2011 of Economic Research’s Board of Directors, term average. But that is just the advanced keep in mind in formulating your own medium- economy in the past 70 years. Having served in Deauville, , that also focused on and is a Trustee of the Stanford Institute economies, what about the strong performance term expectations. First is whether the current protracted and as the IMF’s First Deputy Managing Director forging a new partnership with Middle for Economic Policy Research (SIEPR). In of emerging economies? For the emerging moderate recovery is going to influence expectations about potential and sustainable – the organisation’s No. 2 Leadership Role Eastern and North African countries January 2012 he joined the Johns Hopkins economies as a whole, the IMF forecasts growth of 5.4% this year, and growth of 5.9% next year. long-term growth prospects. You may have difficult. – between 2006–2011, as well as Acting following the Arab Spring. Representing the University’s Paul H. Nitze School of Advanced heard references to economists’ debate about IMF at critical meetings of Eurozone Finance International Studies (SAIS) in Washington as The average of the last five years is about 5.6%, Managing Director from May–July 2011, which is actually a bit lower than the 30-year whether the current moderate growth rates Ministers, Lipsky pushed hard for stronger a distinguished visiting scholar. Mr Lipsky is a Lipsky was a dedicated and effective leader average. So even in the emerging economies represent a “new normal”, implying that future who sought more effective international action to halt the downward spiral, to member of the Council on Foreign Relations. that we celebrate and are happy are growing growth will on average remain slower than in strongly, this period has been somewhat less the past few decades. 18 Brave new world // Beyond the crisis of public finances Dr John Lipsky // The current economic climate 19 ROME Global water summit 2012 Brave new world Beyond the crisis of public finances

Why would that be? Well, when you think about views about pre-crisis financial sector flaws. In in deficits will have been unwound by the end the key factors that underpin economic growth, particular, banks are being required to expand of this year. Nonetheless, advanced countries’ this would encompass three factors: growth in their capital base. Thus they will need to expand overall sovereign debt outstanding will rise this the labour force, growth in the capital stock, their capital simply to maintain currently year by about 5% of GDP, while most advanced and increased efficiency – what economists call outstanding credit levels. Other measures, such economies still will be rising primary deficits. “total factor productivity”. When we think about as mandating the use of central counterparties That means that they are running deficits even the unemployment rates, let’s think in terms of for derivative contracts will tend to inhibit if debt service payments were excluded. Contrary to the IMF’s forecast. It suggests that at the end of activity until they are well-established. At the So the challenges for the advanced economies next year, the average rate of unemployment same time, new taxes are being imposed on are large. The sources of the increase in deficit in the advanced economies will be 7.8%, in the financial institutions in many cases. popular opinion, and debt, contrary to what most people think, U.S. 7.9%, in the Euro area 10.8%, in Japan only The implication of these developments is clear: are not a result of discretionary choices on the 4.4%, and in the UK 8.7%. In other words, we’re it was not the the financial sector will remain under pressure part of authorities. In fact, nearly 50% of the getting used to rather extended periods of for some time to come. Whether limitations on increase of debt and deficit in the advanced very high rates of unemployment. This creates decisions of credit availability will be temporary or longer- economies represents revenue losses associated the question of whether some of those who lasting is an important question, and one that with slower growth. Another 20% represents have become unemployed in this downturn, will have to be taken into account in the design the kind of expenditures that we call automatic policy makers especially older workers, will re-enter the labour and implementation of financial sector reforms. stabilisers such as increase in unemployment market. So one concern is that labour force In any case, the underlying message is that the benefits, and almost 10% represents support to that boosted the growth is going to be slower in the future than most likely outcome is one of moderate overall the financial sector. Fiscal stimulus in the way it has been in the past. economic growth in the context of sustained we tend to think of it, increased spending and/ deficit as much The second aspect to consider is that financial sector challenges. or cuts in tax rates, only accounted for about investment in most economies has been 10% of the increase in debt and deficit. as the weakness much lower than it was in the period leading So contrary to popular opinion, it was not the up to the crisis. If investment growth remains Short-term fiscal challenges decisions of policy makers that boosted the relatively slow, this also would tend to point Now let me turn to my second topic: short-term of economies. deficit as much as the weakness of economies. to a slower overall trend of economic growth fiscal challenges. In 2012 advanced economies There is some good news there – if growth was than in the past. In this context, it is important are projected by the IMF to grow by 1.2%, but to recover, then the deficit should be geared to ask whether the crisis is going to leave a their budget deficits are going to be about 5.7% to come down, but unfortunately, we’ve just long-lasting impact on the financial sector of GDP, ranging from Japan at over 10%, in the agreed that in fact the outlook is only a modest itself, and whether this also would point to U.S. 8%, and in the UK 8%. This may surprise you, There is some one. But why is this a problem? In 2007 for the slower future growth. It is commonly heard but in the Euro area the total budget deficit is advanced economies, general government that during the pre-crisis period, the financial about 3.2% of GDP. In other words, not high; good news there debt amounted to about 70% of GDP, and at the sector became too adventurous and far too to the contrary, actually low by the standards end of next year by IMF figures, it will be about leveraged.The implication is that the financial of the other advanced economies. Next year 110% of GDP. And already, at the beginning of – if growth sector still will require additional deleveraging, the growth is going to be about 1.9%, again this period for the advanced economies, public a development that most likely implies reduced using IMF figures, and the deficit about 4.5%. debt relative to GDP was the highest since was to recover, credit availability. For example, the IMF’s latest By contrast, overall budget deficits in emerging World War II. It runs the gamut: in Japan public calculations anticipate that within the Euro economies will be about 2% of GDP. debt is 240% of GDP, in Italy 123%, in the U.S. area, bank deleveraging will produce a new 2% then the deficit Thus, the fastest-growing economies have 110% and in still only 77%. But for contraction in overall credit outstanding. relatively lower fiscal deficits, while the the emerging market economies, total general should be In other words, it is likely that credit will either slower-growing economies in general have government debt as a percentage of GDP is contract or at best grow very slowly over the higher deficits (and debts) and whose fiscal about 34%, a rather different picture. Moreover, geared to come next few years. Of course, policymakers in performance deteriorated significantly in the this means pressure in markets because the general hold contradictory views about this wake of the 2008/2009 crisis. Not surprisingly, need for rollovers of debt outstanding for the prospect. On the one hand, they want the this deterioration has spurred efforts to reign advanced economies is going to be on average down. financial sector to support a stronger economic in – and reverse – the rising tide of debt and about 25% of GDP, and public debt needs to be recovery and expansion. At the same time, deficits. This year, for example, it is anticipated rolled over every year; it ranges from, in Japan, however, they support financial sector reform that the advanced economies will reduce their about 54% of GDP all the way down to about measures that in the near-term at least will tend overall budget deficits by about 1% of GDP. As a 9% in Germany. to restrict credit availability, reflecting consensus result, about two-thirds of the crisis-induced rise

20 Brave new world // Beyond the crisis of public finances Dr John Lipsky // Short-term fiscal challenges 21 ROME Global water summit 2012 Brave new world Beyond the crisis of public finances

Is austerity the solution? fact, adjustment programmes in these cases are before I finish. The decline in the credit quality I’ve given you a rather complex beginning for receiving financial support from European and of many governments has meant that the stock your discussions; one in which we all agreed At a time in So the burden of financing sovereign debt is international institutions. of what financial investors consider safe assets that the outlook is a moderate one, that there going to sustain funding pressures on many will have declined substantially. In fact, again are some significant challenges, and that fiscal governments for some time to come. One result There is a clear empirical record that suggests which investors using IMF numbers, that stock of safe assets will policy and the advanced economies are going of this pressure has been the announcement high debt slows growth and that it is a non- have declined by the end of next year by about to be under pressure for a while. In other words of deficit-reduction plans in most leading linear relationship. When debt reaches about are demanding $9 trillion, or more than 15% of the total stock this is not going to go away quickly. economies. Of course, this has created its own 80–90% of GDP, from that point on, you can of safe assets. In other words, just at a time in controversy. For example, there are those who see clear effects. The IMF’s work suggests that But if there is another message, it is that this is more safe which investors are demanding more safe assets, think that austerity will make things better. about a 10% increase in debt relative to GDP not mission impossible. In the past the kind of there are fewer around to be had. And that too They think this because with debt and deficits will reduce growth by about 0.2% per year. But adjustment that I’m talking about has produced I think is a message for you; that high quality, assets, there are rising to such a level, governments have a that means that if you went from about 60% of better results in the future, and I hope that that’s well considered projects may find a more ready credibility problem, and they have to establish GDP to 120% of GDP, you cut growth rates by the case here. Thank you very much. acceptance than they had in the past. fewer around to credibility that they’re able to enforce and 1%; that’s 1% of GDP every year that is being maintain policies that will be sustainable, and lost because of higher debt. In other words, be had. you’ve got to start somewhere. So the idea is this is a non-trivial issue. It is not clear how to you can’t solve these problems in the short run, balance the obvious need to bring debt down but you have got to give some confidence and over time, in those cases where it is clearly too credibility to your promises. But you have to be high, against the issue that a reduction in the realistic; as study after study has shown in the deficits today will reduce growth today. So the near term, austerity is going to reduce growth question is: can you manage things credibly I think that even if in the long term, it increases it. There is and find the right balance? Unfortunately, there is a message no magic bullet here. is no easy answer. The second view is that austerity is only going for you; that to make things worse. The idea is not that we Restoring the debt to GDP should just forget about fiscal debt, but that balance we have the option, let’s call it the soft option, Let me give you an idea about how much high quality, of a St. Augustine policy of “Make me virtuous, adjustment might be needed. When I was at the but not yet”. In other words, a promise that we’ll IMF, we did the following thought experiment well considered do things right eventually, just not right now. that has been repeated: think about how much And the question you have to ask yourselves is adjustment in the budget balance is required whether that can be credible or whether it is projects may by the year 2020, in order to restore the debt self-defeating. It may be surprising when you to GDP balance of 2007 by 2030. Since 2007 go back and look at the deficit numbers for the find a more was already the highest debt to GDP ratio Euro area, and see that in fact, as I mentioned since World War II, it doesn’t sound draconian earlier, that this year the budget deficit will be to get back there by 2030. For the advanced ready acceptance about 3.2% of GDP in the Euro area, down from economies, on average that would require an 4.1% the previous year and down from 6.2% the improvement in the basic budget balance of than they had in year before that, and that next year the target about 8% of GDP; in other words, if you want is 2.7% in the Euro area. In other words, the to get back to where you were, it will require sometimes heated European debate regarding the past. an effort of considerable size maintained fiscal austerity may be somewhat exaggerated, for a considerable length of time. Of course in that on average the planned degree of there’s big differences between countries. For new fiscal tightening is relatively limited. Thus, Japan it’s a huge adjustment, for the U.S. and it is not clear whether abandoning existing the UK it’s a very large adjustment, for Italy a fiscal adjustment plans would boost either substantial adjustment and for Germany, a small confidence or medium-term growth prospects. adjustment. But it’s not mission impossible At the same time, there seems very limited and it has to be done, if not all the way back, scope for a new turn toward fiscal expansion. you can make a case that we have to get Of course, in some country cases the need for back to that threshold of 80–90%. That is the near-term fiscal adjustment is unquestioned, environment we’re going to be living in. since effectively they already have lost access to public credit markets on sustainable terms. In There is one final aspect I want to point out

22 Brave new world // Beyond the crisis of public finances Dr John Lipsky // Restoring the debt to GDP balance 23 Planning India’s water future With the advent of India’s 12th Five Year Plan, Dr Mihir Shah explores the changes the country’s water management is facing a brought about in this new approach major paradigm shift. to water management.

Keynote address by Dr Mihir Shah ROME Global water summit 2012 Brave new world Planning India’s water future

Introduction construction of these large dams is being of getting water to the farmers, and that is what exhausted. If we take a look at the Himalayan we are now going to concentrate on. There is I would like to bring you some good news system where a lot of this new effort is to be evidence from best practice across India and from India. Today I will briefly summarise the focused, major conflicts have emerged on the across the world, that where farmers have been major changes that India is poised to make River Ganges. There are also problems posed by centrally involved, and where there have been in the paradigm of water management that the geological attributes of the Himalayas; there a variety of service providers who play crucial has been followed for the last 60 years, since are high levels of sediment there and difficulties roles in concentrating on water use efficiency, Independence. With the beginning of the 12th when installing turbines at those altitudes. So the picture changes very dramatically. When Five Year Plan, which we just kicked off on there is a need to re-think the way we move farmers get involved, when water user the 1st April this year, we propose a complete forward. associations are formed, and when the pricing change in the way we look at water and the When farmers of water happens in a participatory and strategies to manage water. There has been a proposal in recent years transparent manner, then people are willing to for the interlinking of rivers across the Indian The Prime Minister of India is the Chairman of pay for a service that they feel assured will be get involved, subcontinent. Recently the Supreme Court the Planning Commission, and when I joined provided. of India has also stepped in on this rather the Planning Commission he asked me to when water user controversial issue. But scientific studies have The entire focus as we move into the 12th work on building a consensus around this new found that the implications of this kind of Plan will be on service provision, better strategy. I’m glad to tell you that a new strategy mega-project could be quite devastating. management, more participation and rational associations for water management has now been endorsed Sometimes it’s forgotten that it is the existence pricing of water; and I am going to tell you by the Prime Minister and is awaiting formal of a low salinity layer in the upper reaches of the about the range of opportunities that this are formed, approval by the National Development Council. Bay of Bengal which triggers the monsoon cycle new paradigm opens up for players across the in India. The low salinity layer is contributed board. There is huge opportunity for the private and when the Rethinking large storage structures to by the fresh water which comes into the sector to play a role in providing these high Over the last 60 years, India has focused its sea from the rivers. If a gigantic project of this quality services. The scope of these services pricing of water water development mainly on the construction kind were to be envisaged, where the fresh has expanded enormously. Therefore, what we of large storage structures, and in more recent water flowing into the Bay of Bengal was to are doing is changing the way the Accelerated happens in a years, on the exploitation of groundwater. But be impaired, the low salinity layer would be Irrigation Benefits Programme will be this period has run its course. endangered. This would not give rise to high implemented. We need to incentivise states to temperatures, which in turn gives rise to the low look at approaches to managing water, because participatory These strategies made a huge contribution to pressure zone that exists over the Bay of Bengal, as you know, water is a state subject under the ensuring food security in India, in contrast to triggering the entire monsoon cycle. Indian constitution. The action happens in the and transparent the situation in the 1960s when India had to states, they are the real implementers. import wheat from the United States. Today, So we seriously have to re-think this entire large manner, then the country is self-sufficient in terms of food. storage strategy. To incentivise reform in the water sector in The strategy of depending upon large irrigation India, we are proposing the creation of a structures, and also intensifying water use National Irrigation Management Fund. It would people are The multidisciplinary provide incentives which would match the through the exploitation of groundwater has management centred approach contributed in a major way towards this self- work that the states do with contributions from willing to pay sufficiency. The first element in this paradigm shift the federal government, so that they move is that we need to move towards a more decisively in a new direction. There are states for a service Dr Mihir Shah However, for several reasons, the time has multidisciplinary management centred which have already moved in this direction and now come to re-examine this entire strategy. approach, where we look into issues such as really, the task is to mainstream the excellent Dr Mihir Shah is the youngest person ever to occupy the role of Member, Planning Firstly, because of the huge human tragedy the pricing of water, and irrigation service fee work that has happened in states like Andhra that they feel Commission in the Government of India. Dr Shah is in charge of the portfolios of Water that occurred; when these structures were collection from command areas that we have so Pradesh and Karnataka to the rest of the Resources, Rural Development and Decentralised Governance. Dr Shah has over 20 years’ built millions of people were displaced from far neglected. We have had to pay a major price country. assured will be experience in the field. He was involved with the formation of Samaj Pragati Sahayog, their original homes. The country faces a major for the fact that we separated the command So the first change that we will make is in the challenge from left-wing extremism which is area programme from the construction provided. one of India’s largest grass-roots initiatives for water and livelihood security. He recently way we manage the irrigation commands, the primarily concentrated in those areas of the programme of these large structures, and that improved the Mahatma Gandhi National Rural Employment Guarantee Programme (the huge irrigation capacities that we have created country, which were inhabited by the tribal is what we are trying to fundamentally change largest employment programme in human history) and is compiling the new national and improve the utilisation of these capacities. populations of India, where many of the large with the 12th Five Year Plan. strategy for sustainable water resource management. Dr Shah graduated in Economics dams were built. One major element in improving water use from Delhi University, where he won the KC Nag Economics Prize. He was a Merit Scholar These programmes have been run by large efficiency will be the focus on drip and sprinkler Another difficulty is that many of our river in his post-graduate studies at the Delhi School of Economics and completed his doctoral engineering bureaucracies, engaged in irrigation, and this will not be a subsidy-driven basins are now facing almost complete dissertation at the Centre for Development Studies, Kerala. construction activities, but they have forgotten programme. We believe that these are profit closure, and the availability of more sites for about the most important last mile challenge making activities. Once the initial trigger has

26 Brave new world // Planning India’s water future Dr Mihir Shah // The multidisciplinary management centred approach 27 ROME Global water summit 2012 Brave new world Planning India’s water future

been provided through an incentivising reform- possibility. So this is the second aspect of the have to do. The fact that we have not done it is of projects. I have the responsibility of signing orientated programme such as the Accelerated major shift we are making from the strategies of because there has been complacency about the off on every dam that is built in India, and while Irrigation Benefits Programme, we believe that the past. availability of water in India. We are reaching a doing so we impose various conditions. But there is huge scope for private investments in point where the availability of fresh water is not we have no credible mechanism of being able this sector of Indian agriculture. something we can continue to take for granted. to say whether the conditions that we impose Sanitation We need to move actively in a direction where are actually being complied with; and that is Unless we look at water and sanitation we are reusing and recycling our water, not only a major institutional change that we want to Groundwater management together, whether it is in rural or in urban for our own requirements, but also because the make. Within the Over the last 30 years, it is not so much surface India, we are not going to make headway in quality of our groundwater and the water in Aspect number six is that although we believe water, but groundwater which has driven water management. We have a completely our rivers is in danger if we do not have these water remains a state subject under the Indian 12th Five Year irrigation and agriculture in India. India is the new strategy for rural sanitation and rural systems in place when we undertake industrial Constitution, it is now the right time for the largest consumer of groundwater in the world. drinking water, but also, importantly, we have activities. Plan, significant Over the last 20 to 30 years the so-called Green the Jawaharlal Nehru National Urban Renewal enunciation of a National Water Framework Revolution was really triggered by the use of Mission, which is a major Government initiative A huge opportunity also exists for knowledge Law. It is somewhat different from the European groundwater from tubewells or bore wells. for urban India. We are making it a condition creation in this sector, because there is a need Framework Directive, although it derives a lot resources are of support that you have to have sewage to bring best practice from across the world of its ideas from it, in the sense that we are not The problem, however, is that this strategy is treatment wherever you build water supply and across the country, and make it available yet talking of targets to be complied with by now also hitting a plateau. This strategy is fine being earmarked systems; and here again is a huge opportunity for those wishing to make investments. I know each state. What we are certainly talking about so long as you are dealing with a hydrogeology for investment from the private sector. there are people in this room who have great is water management principles with a legal for the mapping where the rate of recharge corresponds to the expertise in doing that. We welcome you to basis; there has to be compliance with those rate of groundwater extraction. It runs into Within the constraints that an economy like come and participate in this huge adventure principles, which would underlie the common deep trouble when you go into the hard rock India faces, there are huge opportunities that we are initiating in the water sector in India. framework within which water resources will be of aquifers in formations. 70% of India is underlain by these for investment in certain sectors and we And let me assure you that we will also provide managed in India. hard rock formations, which have very low must highlight them. India has about 30% the kind of institutional framework that is We have, again, begun discussions with the India. rates of natural recharge. What has happened sewage treatment capacity compared to its required for this change to happen; and that is state Chief Ministers, and there is a tricky issue is a man-made crisis of groundwater across requirements. The problem is not only that the aspect number five of the paradigm shift. the country, because we have indiscriminately sewage treatment plants are few, but that the here about how we introduce this change. applied a technology which was appropriate transport of the sewage from the point of origin In Article 252 of the Indian Constitution, the for certain kinds of geologies to the rest of the to the treatment plant is completely under- Regulations & regulatory bodies Parliament of India can pass a law after two country. sourced. And that again is an area where we Support under the Accelerated Irrigation Benefit state assemblies have passed the law. We are require the private sector to come in and play a Programme will now depend on each state going down this route, because there are Here again we propose a major shift in the way major role. This is the third major initiative that setting up water resource regulatory authorities. major areas of contention in India today about we move forward. It’s not that we are discarding the paradigm shift represents. Without that regulatory system in place, we centre-state relations, and we believe this will this technology, but rather that we are trying to cannot find a framework within which conflicts be the best way. I am happy to tell you that I Once we map use it more appropriately. You may be familiar can be resolved and the private sector can play have more than two Chief Ministers who have with the work of the late Elinor Ostrom, winner Industry an active role. I have begun my discussions committed to passing this law in their own them, we can of the Nobel Prize in Economics. The work is The fourth aspect is about Indian industry, and with the Chief Ministers of all the states, and I’m state assemblies. Once that happens, the Indian essentially about the management of common while the country is a rapidly industrialising getting a very positive response. Of course, this Parliament can enact the law. initiate more pool resources, and the first design principle and urbanising economy, there are conflicts is still a work in progress, but I can say that there Lastly, the seventh aspect of this paradigm that she enunciates is that we need to delineate emerging with the countryside. Indian industry are states which have already instituted the shift would be that we look at water now very carefully the boundaries of such resources has to show far greater responsibility about participatory regulators, and there are others which are in the as not merely belonging to the domain of if we are to manage them sustainably. how it is reusing and recycling the water that process of doing so. governments (central or state), but that we In India, we still do not have a precise idea it needs for its operations. I’m working closely processes of In terms of institutional architecture, we are initiate a complete change in the way we of the extent of the aquifers within which with the Federation of the Indian Chambers of also visualising the creation of a National partner both civil society and industry in we are finding this groundwater. Within the Commerce and Industry and the Confederation groundwater Water Commission along the lines of the one carrying this agenda forward. We welcome 12th Five Year Plan, significant resources are of Indian Industry; they are now committing which exists in Australia, which allows us to the participation of the private sector, and of being earmarked for the mapping of aquifers themselves to pledging to move towards management. monitor compliances against the conditions organisations working on the ground, which in India. Once we map them, we can initiate a situation where a water audit becomes a that the Federal Government imposes. We would enable the implementation of the kinds more participatory processes of groundwater mandatory part of their reporting requirements, wanted it to be an independent professional of ideas and strategies that we are visualising in management involving key stakeholders, and where a water footprint is constantly body which has credibility, whose findings this water management paradigm shift in India. whether they are in agriculture or in industry, so monitored for each class of Indian industry. This cannot be disregarded either by the central that we reach a situation where the sustainable again opens up huge opportunities. It’s a new world out there, I’d welcome all of you government or the state governments, and management of this groundwater becomes a to come and join. Thank you. The technology is there, and we know what we which provides a framework for the approval

28 Brave new world // Planning India’s water future Dr Mihir Shah // Regulations & regulatory bodies 29 Reinventing the toilet: The future of global sanitation

2.6 billion people around the world do not have access to a sanitary toilet, and half the hospital beds in the developing world are filled with patients suffering from the diseases this causes.

But to develop traditional sanitation for a problem of this scale requires huge amounts of infrastructure, and huge amounts of water. The Gates Foundation

Keynote address by believes it has found the Dr Frank Rijsberman solution: to reinvent [ ] the toilet. ROME Global water summit 2012 Brave new world The future of global sanitation

Introduction defecation. Not happily, but because they have simple technology,” and I think, probably not. no other option. Culturally, that means women Composting toilets are finicky, it can take You may ask, why do I want to talk to you about often have to defecate outside at night after as much as six months for those biological toilets? Well, we acknowledge that water and dark. This happens to be the time when they are processes to get rid of all the pathogens. And it sanitation should go hand-in-hand, but 90% most at risk of being raped, because you have doesn’t have to be simple technology. Probably or more of our attention goes to water, and to go to places where there is no security. the most successful innovation that has really sanitation is the ugly step-sister, if you like. And reached poor people is the cell phone and it’s when you say sanitation, you tend to think of Because there are many urban areas – low I would not simple. The little unit is not simple and it wastewater treatment, of sewer networks and income urban areas or slums – where every depends on cell towers, invoicing systems, and of wastewater treatment plants. I’ve come to surface area is covered in faecal matter, imagine that a lot of very complicated infrastructure that tell you that, in my mind, those are pretty much more than a million children die every year works and is affordable for poor people. irrelevant for the people we are interested in. of diarrhoea. So yes, Bill Gates invests a lot there isn’t a in vaccines, but he also realises as long as So why does Bill Gates feel compelled to spend children live in an environment where there are hundreds-of-millions-of-dollars of his money to Need for an aspirational product single person pathogens everywhere, that’s not enough. reinvent the toilet? Basically, because you will The other reason I talk about the cell phone of not. I don’t mean that as a personal deficiency sanitation is because I think it needs to be an in this room or a moral problem that you have; I mean The problem with networked aspirational product. Whilst we are trying to that you don’t see a way to make money by sanitation create something for poor people, as long as who doesn’t investing in sanitation services that work for the we think of the flush toilet as the gold standard, When I speak to engineers or people from the poor. So Bill Gates is putting his money on the we’ll always aspire to the flush toilet. And water industry, they say we want toilets 2.0. table for innovation and product development, frankly, how much sense does it make to clean have a water This almost always means flush toilets with in the hope that it will enable and allow you to up water to drinking water standard, and then a lower volume of water. We are not excited develop businesses that will provide sanitation use a large amount of it as a transport medium. closet or about that. We are talking about people that services for the poor. To flush the waste through very expensive don’t have flush toilets. We want to come up pipes that we can barely afford, for it to arrive a modern with something that addresses this sanitation at wastewater treatment plants where we can Why reinvent the toilet? crisis, recognising that sewers, while they have spend more energy trying to get it out? We convenience in Why reinvent the toilet? Doesn’t it work been great for us, might not be an option want an aspirational product that eventually wonderfully? Well, it does for you. I would everywhere; for example, in an African capital, replaces the flush toilet in your house. imagine that there isn’t a single person in this perhaps 10–20% of the capital has a sewer their house... Last year we started investing; we put room who doesn’t have a water closet or a network, and I guarantee you it’s not the low money on the table. We don’t quite know modern convenience in their house, due to income areas. however, it what the solution will be, but we put a lot of what Alexander Cummings patented in 1775. So when governments in developing countries small amounts of money out there to seed We credit him with the invention of the toilet, have a policy to increase sewer networks for innovation. serves only, but of course what he really invented was the everybody (e.g. there is currently 9% coverage, water seal, allowing you to take the outhouse and over the next 5 years this will be increased If you go to universities that work on water and this might Dr Frank Rijsberman into your house because there was no more to 40%), it’s wishful thinking. Five years later and sanitation, they all come up with pretty Dr Frank Rijsberman is the first Director of Water, Sanitation and Hygiene at the Bill and smell. And it’s been so incredibly successful that 9% may have become 10%, or 8% because standard solutions because it has been so surprise you, Melinda Gates Foundation. In 2011 he was responsible for ramping up grant-making when you go to a public health conference, growth in the cities is very high. So this is what successful for a chunk of the world. So we’ve many people credit the toilet as the most for this new sanitation-focused strategy and led the development of a science and sanitation is like for poor people, at best; and I’m actually gone to chemistry departments and important public health invention ever. physics departments and said, “You don’t work a third of technology initiative under the banner of “Reinventing the Toilet”. showing you the whole value chain. on sanitation, but maybe you should. Can you However, it serves only, and this might surprise For seven years, Dr Rijsberman served as Director General of the International Water Networked sanitation costs around $1,000– come up with something?” the world’s you, a third of the world’s population. Another Management Institute (IWMI). He was also a member of the Task Force on Water and $2,000 per head. At the bottom of the pyramid, third have basically just a hole in the ground, In the 200 years since Cummings invented the Sanitation for the UN Millennium Development Goals Project, and one of the key that’s simply not affordable, so we have to come population. and this is the lucky third, the people who are up with something else. In other words, we toilet, isn’t there something we’ve done that organisers of the second World Water Forum. He served as part-time professor at the still counted as having basic sanitation facilities. need to reinvent a toilet that is not linked to could help us completely re-think this project? UNESCO-IHE Institute of Water Education. Dr Rijsberman received his Bachelor’s and Then there are about a third of the people in sewerage, water lines, or electricity lines. In August 2012, Bill Gates will personally hand Master’s Degrees in Civil Engineering from Delft University of Technology, and earned the world – more than a billion people – who out the reinvented toilet innovation award to a multi-disciplinary PhD in water resources planning and management and civil practice open defecation, which in other I call this concept the cell phone of sanitation, the group that has come closest to a feasible engineering from Colorado State University. words means that they just defecate outside partly because when I talk about something prototype for the reinvented toilet. or have inadequate latrines equivalent to open like this, people say, “Oh yes, composting toilets,

32 Brave new world // The future of global sanitation Dr Frank Rijsberman // The problem with networked sanitation 33 ROME Global water summit 2012 Brave new world The future of global sanitation

Ideas for the reinvented toilet toilets to see if they can recover the struvite, Community based solutions in Bangladesh, which is the same price as a to make a valuable fertiliser for agriculture. concrete one: $30 maximum for a simple toilet. I would like to mention a few of the Aside from developing the technology and technologies that are out there: the sanitation business, we also realise that The Copenhagen Consensus challenged my we need to work with the community. Kamal colleague and I to come up with investment Microwaves: At the Delft University of Dealing with waste Kar, an Indian scientist working in Bangladesh, opportunities. We think that CLTS, sanitation as Technology, an excellent physicist who won Hopefully, all of these ideas encourage you to came up with Community-Led Total Sanitation a business for poor urban areas, and reinventing the Spinoza prize thinks that we can use think, “Perhaps there are technologies that we (CLTS). This programme focuses on sitting the toilet are real business opportunities. We’ve microwaves. A plasma would be created that might potentially look at.” with the community and not only raising come up with some cost benefit assessments breaks down the waste into syngas, which Eventually, we will also need a household awareness of the risk of disease caused by for these opportunities, which are shown in the can be used to create energy. A prototype is level solution, a little black box that recovers open defecation, but also discussing solutions table below. We need to expected this summer. energy and other materials. In households in for the local community. Confronted with the Of course, the benefits are often not financial; Hydrothermal carbonisation: Loughborough a large part of the world, we’ve become good situation, many communities decide that they reinvent a they’re public health benefits. So although we’re University proposes a hydrothermal at recycling our waste. A very large percentage can take on the responsibility of getting rid of not saying that in all of these areas you would carbonisation process, which you may know of the waste we generate in the household open defecation. CLTS has been very successful, get this kind of financial return, governments toilet that is as pressure cooking. A pressure cooker can can be recycled. Why not human waste? We with tens-of-millions of people affected by the really ought to invest in the medium term, raise the temperature to beyond 100 °C; at think this could be because the “yuck” factor is solution. creating business opportunities for you all. We not linked 120 °C biomass will begin to carbonise, even fairly high, but once we realise – as the Chinese However, when people are motivated to do this, think that we should reinvent the toilet and in wet conditions. When the material has been have done for a very long time – that we can they also need solutions that work for them. If create an aspirational product which provides carbonised, you potentially have a material that recycle the night soil back into agriculture, we to sewerage, they build very simple latrines, but then have sanitation services that all of us can afford. can be burned. might find smart, new, and probably higher technology solutions than just a bucket, which no means of emptying them when they fill up, water lines, Electrochemical reaction: At Caltech, a can eventually do the same thing. then they often revert back to open defecation. member of The Academy of Engineering thinks When I was in Indonesia I visited some of the that they can come up with an electrochemical In the medium term, we’d like this to happen Cost benefit assessment of three business opportunities or electricity projects that we are investing in. We found reaction. This involves using an electrical current at the community level. We also recognise that people don’t want to adopt simple latrines. to break down waste suspended in water to before people have the reinvented toilet, we’ll lines. A survey asked people, “Why don’t you build Investment Cost: benefit People served produce hydrogen, and then power some form probably have to service the 2 billion latrines a latrine?” 20% of respondents said, “We have Opportunity ($ million) ratio (million) Risk of fuel cell. and septic tanks out there. And we don’t quite understand why many governments who a garden.” If it’s a long garden, and there is a CLTS 3,000 4:7 600 Low Biomass to biochar: Another idea is turning little stream at the end, then this may be a see garbage collection as their mandate, and Sanitation as a biomass into biochar, which is a good way convenient solution for individuals. But this 320 23:47 200 Medium have garbage trucks that go around in the business to stabilise biomass from a climate change community, don’t collect human waste. Why becomes a problem when the waste is taken I call this Reinvented toilet 125 40 1,000 High perspective. Woodchips are often discussed would cities say that they can cover sewer downstream to the neighbours. We want to in terms of their use as a soil improver – in have technical solutions that help people, not networks or nothing, when the sewer networks Source: Rijsberman and Zwane, 2012, Water and Sanitation, Copenhagen Consensus 2012 concept the principle, a lot of our human waste is biomass only take responsibility for 10% of the city? For create problems for their neighbours. too and the same thing could be done with it. the other 90% that has a septic tank, instead of cell phone of Direct waste treatment: There are plenty of individuals calling a truck to empty the tank, Business based solutions why not organise this as a city responsibility? other ideas out there which take waste and We mostly fund universities, but we also Audience response: Will a viable low cost alternative to the toilet be developed? Why not process that waste effectively? Partly, sanitation... treat it directly, rather than add 100 times its have some interesting partnerships with because there is no actual good technology to volume of clean water to it. A lot of the ideas industries. After the presentations I made about No: 4.6% do this. because I think involve fuel cells, while others use algae. reinventing the toilet last year, we were flooded • We are funding a process developed by the In India manual emptying is illegal. Although with responses, some of which said that they it needs to be University of Columbia where the sludge this is a good legal solution, it is not a good wanted to help. American Standard, who make Yes: 49.2% from advanced wastewater treatment practical solution because there isn’t a real about 1-in-3 toilets in the U.S., was one of the an aspirational plants in the U.S. is taken and turned into practical alternative. By our estimate, 200 million companies that wanted to work with us. septic tanks are emptied by hand; of course, Will a viable biodiesel. Why put it through a treatment People who want to have a toilet often create a the waste is then dumped around the corner low cost alternative product. plant first, when you can take it from the simple concrete structure to top off their hole rather than being taken to the waste treatment to the toilet be septic tank, put it straight into the same in the ground. This is, however, very difficult to plant, allowing pathogens to re-enter the developed? plant and make biodiesel out of it? We are clean. We are working with American Standard environment. building a pilot biodiesel plant in Ghana to develop a simple stainless steel or plastic with those same researchers to turn faecal An improved vacuum truck that can reach low toilet, which has the same function but is a No, but they may invent sludge into biodiesel. income urban areas is one of the things that we more aspirational product and is easier to clean. something else useful: 46.2% • We are funding Swiss researchers to work in are investing in with engineering firms. We call American Standard thinks that they can come up Durban where they are collecting urine from it an omni-ingestor. with a commercial product that they will launch Source: GWI

34 Brave new world // The future of global sanitation Dr Frank Rijsberman // Community based solutions 35 Water performer of the year

What are the best utilities doing to improve their performance? Which entrepreneurs are making the biggest impact on the way the world of water works? We shortlisted five water sector performers from around the world that have made a difference.

Each initiative is presented in the quick-fire 8 minute Pecha Kucha format, followed by questions from panel. The audience then votes for the 2012 Water Performance Initiative of the Year.

Speakers include Patrick Lorin, General Director, and Hasmik Harutyunyan, Public Relations Director, Armenian Water & Sewerage Company Fahad Aljurish, Senior Manager, IT, Panel members: The National Water Company, Saudi Arabia Oscar Chu, Deputy General Manager, Olivia Jensen, Global Water Intelligence The Macao Water Supply Co., Ltd Taqsem Khan, Dhaka WASA Gérald Razafinjato, CEO, Sandandrano, Khoo Teng Chye, Centre for Liveable Cities Madagascar Jérôme Douziech, CEO, Nuove Acque SpA [ ] ROME Global water summit 2012 Brave new world Water performer of the year

Armenian Water and Sewerage Company

Introduction The infrastructure was in a terrible state: there live lottery on TV to reward our best customers were towns of more than 120,000 people and we periodically award $1,000 to 10 of our I would like to tell you a story. An 11-year- that only had water twice a week. One of best payers – we may be the only company to old girl carries buckets and buckets of water; WINNER our priorities was to drastically reduce the do this in the world, but it has really improved she doesn’t go to school, she doesn’t have a Global Water Awards company’s electricity consumption (which our recovery rate. childhood and she lives in harsh conditions, in a represented 72% of the total gross revenue) 2012 rocky mountain village. This story takes place in Our success is very much down to having a from pumping stations. During the Soviet the high-tech, 21st century. professional operator, and authorities that period, there were no real calculations about adhere to the spirit of PPP. Saur hopes to remain This young lady wrote us a letter saying that how efficient it was to pump water from one involved in operations in Armenia in the future. she dreamt of having water in her private tap. place to another because electricity was free, so We took her letter and we made her dream pumps were installed everywhere. Our first job come true. Her house now has water, as well as was therefore to check where it was possible to Questions from the panel her school and her village. The most important change from mechanic to gravitational systems Khoo Teng Chye: Beyond the 10-year thing is that she’s now back at school, because and to rehabilitate pumping stations with new, management contract, what will be required she no longer has to carry buckets of water. more efficient pumps. to make sure the company is sustainable and We also improved water disinfection: we now doesn’t rely on donor funding? Water service provision treat 92% of our water (in comparison to 61% Our goal is to average 18 hours of supply across Hasmik Harutyunyan Armenia is a small eastern European country, in 2004). We use chlorine gas and comply with our service area, with 24 hours in cities and 15 which is about the size of . The European standards. hours in rural areas. AWSC is a state company so Hasmik Harutyunyan is responsible Armenian Water and Sewerage Company We have increased water tariffs from €0.2/m³ to isn’t after benefit; any surplus will be re-invested for the corporate development of (AWSC) covers about 70% of Armenia. We €0.35/m³; this was well received amongst the in the company, notably maintenance. the Armenian Water and Sewerage are present in 37 towns and 300 villages population, who could see improvement to Taqsem Khan: What is your level of non- Company, thus creating and and provide services to a total population of their services. They understood water couldn’t revenue water (NRW)? managing the corporative policies. 750,000. The company has 1,700 employees. be free and now almost all are paying. She leads and supervises public We started with more than 90% losses. Now we Before Saur came on board, it was “winter time” relations strategy for the company To avoid illegal connections we transferred have reached 70% and our objective is to reach in AWSC’s management. Water supply only by organising national media water meters, and we ran a communication 60% by 2015. averaged six hours a day, leaks from 80-year- campaign to encourage payment. We also run a campaigns and communication old pipes were plugged with wooden sticks, projects. She is the spokesperson there were a lot of illegal connections and we during governmental, local and had emergencies. In a bid to turn the situation Water billing international meetings and around, the Armenian government decided to Patrick Lorin Billing Payments Installed water meters events as well as the international set up a management contract and to bring in Year ($ million) (customers)* (%) Patrick Lorin has been General Director of the Armenian Water & Sewerage Company since the professionalism, expertise and efficiency of correspondent of Saur in this region 2004 4.1 35,000 40 2004. The Armenian Water & Sewerage Company manages water supply and sewerage a private operator. The contract was awarded to of the world. She holds a Masters services for 850,000 inhabitants in Armenia, representing a national coverage of around Saur in 2004 following an international tender 2011 10.1 160,000 85 Degree in Public Administration that complied with World Bank standards. 30 towns and 300 villages. This action is supported by a $100 million investment plan * 170,000 customers receiving service and has pursued her undergraduate studies in England and in the USA. financed by the World Bank, the Asian Bank and the European Bank for Reconstruction Source: Armenian Water and Sewerage Company and Development. Patrick’s main responsibilities cover overall management of the Saur’s management contract AWSC and Client – AWSC Board – interface, management of the financial programme, Since 2005, we have invested $114 million monitoring of performance and rehabilitation and renewals of treatment plants and in water infrastructure. We plan to invest We run a live lottery on TV to reward our best customers... equipment to improve efficiency and enable water and effluent standards to be met. Over another $100 million in the next five years. the last 30 years Patrick Lorin managed major Saur subsidiaries from Scotland to , The investment is co-financed by the state, the World Bank, the European Bank for we may be the only company to do this in the world, but it and from Vietnam to Mali and Burkina Faso, to name a few. As an engineer he developed Reconstruction and Development and the Asian expertise on design and construction and supervision of the sewerage-drainage network. Development Bank. has really improved our recovery rate.

38 Brave new world // Water performer of the year Patrick Lorin and Hasmik Harutyunyan // Armenian Water and Sewerage Company 39 ROME Global water summit 2012 Brave new world Water performer of the year

National Water Company, DISTINCTION Global Water Awards Saudi Arabia 2012 The history of Compass We designed The National Water Company (NWC) is a water system processes covering end to end service management utility in Saudi Arabia. Our business processes, such as customer care, Compass: an ambition is to become a world class utility. To billing, maintenance and operations. We chose achieve this objective, we designed Compass: internationally recognised best practice systems ICT tool that an ICT tool that will help us harmonise from Europe and only had to make minor operations and processes, simplify and integrate adjustments to 12 of these processes to adapt will help us all of our data in a single resource and automate them to Saudi regulation. business processes across all units and cities. All of these processes are supported by a brand harmonise Compass covers all customer billing processes, new data centre in our headquarters. Last year, asset management, GIS, infrastructure and it was shortlisted by Datacenter Dynamics as operations mobility. We started planning in July 2010 one of the top four IT optimisation innovation and launched a year later in August 2011. As projects in Europe, the Middle East and Africa. part of the preparation, all of the NWC’s assets and processes, Throughout our preparations, we monitored were surveyed, including more than 14,000 km the company’s readiness for the launch on of water networks in Riyadh, 6,500 km of 14 August 2011. When it was rolled out, some simplify and wastewater networks and 160 pumping stations 50 trainers conducted more than 100 training and treatment plants. integrate all sessions for 1,200 employees over four weeks. All of the data was uploaded into our new We also set up a call centre after the launch to Fahad Aljurish system. In addition we introduced 160 new provide extra support for our employees. of our data. Fahad Aljurish is a Senior IT manager at the National Water Company (NWC), in Compass architecture addition to being the Program Manager of the Compass Program. He holds a Bachelor’s CC&B e-Services & EAM Degree in “Information Systems” from King • Customer Care and Billing • Assets registry and assets history • Service Contract Portal • Maintenance Management Saudi University, Saudi Arabia. Mr Aljurish • Meter Management • Payment Option • Work Order scheduling • Complaints Management • Account information and follow-up has more than 15 years’ experience working • Customer services Report • General Information • Reporting tools Report • Manage account • Maintenance Analysis tools • Portal in various industries covering three different

s sectors: Utilities, Financial Institutions and Access to e- A e Complete - Work -Work Orders R

Oracle Facade CC&B - Access to e- - Link Asset A c -Work Orders B B i services orders E Work - Resources D S V M v

& services to CC&B &

I Failure r A A A orders

e -Work Schedule Petrochemicals. His experience revolves C C G M -Meter Sensor C I E s C R C - -Work order -WO Costs S

P values e -Notifications around Information Technology. Middleware Mr Aljurish has participated in mega IT transformation projects to serve the C E C

- Link Asset A -Work & Standard -Accounting M enterprises as a whole. One of his first projects B -Contact - Customer -Unlinked eAM Asset Orders C C Documents System C E E E center - eAM -Asset details E C C C Service A A A -Account A -Work Orders -Work Order & & & -CC&B reporting M was the “FANAR Project” in one of the largest M M -Work order M B B payable B - Resources Schedule reporting -Notifications - SADAD -Work Schedule - Execution -Electronic -Field maintenance petrochemical companies in the world detail -Work Orders Costs Status Printing system payment (SABIC). The project involved centralising the IT services and integrating 17 regional affiliates ERP System Remote Channel GIS/Mobile GIS PRIMAVERA SCADA eBusiness Suite • Contact Centre • Geo-Database • Work Scheduling • Measurements including the international offices within 10 • HR Software (Call Centre) • Map System • Finance • SMS • Procurement • IVR months. Mr Aljurish’s most recent project is • Inventory the COMPASS Program. Source: NWC

40 Brave new world // Water performer of the year Fahad Aljurish // National Water Company, Saudi Arabia 41 ROME Global water summit 2012 Brave new world

Compass achievements performance. For example, we have reduced leaks and improved the time it takes to install We have All processes are now integrated and water and wastewater connections (see figure automated. There are multiple benefits from this below). We see Compass as the foundation for new system. reduced leaks NWC to become a world-class utility. • Customer services can locate premises, and improved know their status, translate customer requests into work orders directly and Questions from the panel the time it assign the work order to the field crew with Khoo Teng Chye: Can you tell us some of the the right skills and equipment. Field crews challenges you faced, particularly with regards takes to install can in turn check the availability of spare to implementation? How do you get your parts at the warehouse. employees to buy into such a sophisticated system? water and • All transactions are totally integrated with financial and accounting systems. Every Most of the challenges we’ve faced were about wastewater transaction is logged so that we know the employees having to adjust the way they work. cost of every transaction. People are used to doing business in a certain way and we asked them to change it overnight. connections... • Information on assets, GIS positioning, We also changed the technology underpinning customer care, meters, billing detail, etc. are most of our processes, and that was a challenge. we see now all in one place and easily accessible in But we overcame this by providing training a variety of smart platforms. and support: after the initial sessions, our Compass as • Our meter readers carry mobile devices and trainers stayed with our employees in the field, can access and update information as they encouraging them for 2–3 months, ensuring the foundation go. their performance didn’t drop. • Teams on the ground can receive their Taqsem Khan: This level of automation has for NWC to orders online directly. high costs, has it impacted your water tariffs? • We have very sophisticated reporting tools, We have a low tariff in Saudi, of about become a 3 allowing us to keep track of our activities €0.1/m , but we’re looking at sustainability. and adapt our responses thanks to real-time We want to break even and we hope that world-class information. automation will minimise our costs. We’ve been able to automate many processes and have re- utility. • We have developed e-services for our deployed staff whose tasks became redundant customers such as paperless billing, detailed in different business areas. account information and an e-portal for our employees. Olivia Jensen: How much did the new system cost? As a result of this project, we have added value to the company and it has improved our Around €30 million.

Compass impact on key performance indicators 30 50 80 500,000 70 25 40 400,000 60 20 30 50 300,000 15 40 20 30 200,000 10 deducted 20 connection (days) 5 10 100,000

Average time to install time to Average 10 leak detection (million m³) Average time to install water time to Average

0 0 0 violations of environment No. 0 wastewater connection (days) wastewater 2010 2011 2010 2011 due to saved of water Volume 2010 2011 2010 2011 Source: NWC

42 Brave new world // Water performer of the year ROME Global water summit 2012 Brave new world Water performer of the year Macao Water Supply Co., Ltd Introduction massive communication campaign to explain Questions from the panel the situation and highlight what we were doing. Macao is a small city: with a population of Khoo Teng Chye: How do you balance giving We maintained the campaign even after the 558,100, it is much smaller than Hong Kong or enough return to your investors and getting the crisis was resolved and eventually managed to . Macao Water was created in 1985 as community on board? regain our customers’ support. a joint venture between Suez Environnement Our contract has provisions for an annual tariff and NWS (Hong Kong); we signed a 25-year The other major challenge we faced was an review, but because of our efficiency gains concession with the Macao Portuguese increase in raw water costs. We purchase 98% and steady growth, we have been able to government at the time. of our raw water from China and between 2005 maintain a reasonable return over the years. Our and 2010, the price doubled from €0.09/m3 to Our contract has no fixed return on investment, shareholders understand that we cannot be too €0.2/m3. We were able to absorb the extra cost so we have to take the full financial risk of greedy. In 2000, after the Asian financial crisis, Thanks to in the first couple of years, but we had to turn making a loss. the economy in Macao was sluggish and we to the government for help afterwards. We wanted to be ready for re-negotiations, so our In terms of non-revenue water (NRW), we explained the problem and managed to transfer substantial shareholders agreed to reduce our water tariffs might not be performing as well as or the raw water risk back into the government’s by 3%. Since then, the economy has picked Singapore, which have a loss of 3%. However, hands. efficiency up, growth returned and we have been able to with an NRW level of less than 9%, we’re still one To prepare for the re-negotiation of our maintain profit levels. of the best in the region. We have learnt that gains, we have contract, we started measuring customer NRW is not just about technology, it’s about We found water conservation quite difficult to satisfaction 10 years ago. After the salinity commitment, consistent policies and how you tackle at first: we’re a private company and we incident, our support went down to 60%, but been able manage the problem. want to sell more water. But water conservation thanks to our hard work and communication is an increasingly important trend: resources We’ve maintained a relatively stable number campaign, we were able to regain 70% support to maintain are becoming scarcer and China suffers from of employees over the years, but if you look at from the public, an argument we used during an uneven distribution of water, so we’re other indicators, we have made significant gains contract re-negotiations. committed to encouraging customers to our tariffs at in efficiency. We have achieved this through In 2009, our contract was renewed for 20 years. use water wisely. We are also a core member automation, outsourcing for non-core business, of the Water Conservation Working Group $0.53/m³ for training and development. We also promote and are actively involved in promoting water innovation amongst our staff through our The future conservation and a water reuse program. the last 10 innovation award. Our main challenge is coping with the Olivia Jensen: One of the challenges in Macao Thanks to these substantial efficiency gains, increased demand linked to Macao’s fast-paced is demand variability. How do you cope with it? years. we have been able to maintain our tariffs at development. The government is also thinking MOP4.39/m3 ($0.53/m3) for the last 10 years, about introducing a water reuse project and Our five-year master plan follows urban which was an important argument when it we have positioned ourselves to be ready to development, and we review it every year came to renegotiating our contract in 2009. distribute recycled water to our customers. to adjust our annual capital expenditure and Our water quality has complied with European Macao is a showcase for public-private capacity. Our production capacity is 330,000 3 3 standards since the onset of our operations in partnership (PPP) in the region. In the early m /d and our peak demand is 250,000 m /d, 3 1985. 1990s, while most other towns in China were with an average of 200,000 m /d, so we have a pushing for build-operate-transfer (BOT) buffer. The next five years will undoubtedly be Oscar Chu Challenges projects, we were the first to implement the first challenging though. true concession in southern China and it’s still Oscar Chu has been working in the water industry for more than 18 years and is currently We have had to overcome two major going strong. Macao Water: key performance indicators Deputy General Manager of The Macao Water Supply Co. Ltd.. He first joined Macao challenges in the course of our first contract. In Water back in 1993, and was later seconded to Sino-French Water Development Co. Ltd., 2005, because of a severe drought upstream, We think PPP is more than just getting the Treatment capacity 330,000 m³/d a partnership between SUEZ Environnement of France and New World Services Holding the salinity levels of our water rose substantially. capital and technical expertise. It’s also about Production, 2011 78 million m³/yr Customers complained, as did politicians, so (NWSH) of Hong Kong, focusing on the development of water, wastewater and solid risk and opportunity sharing: we transferred the Consumption, 2011 71 million m³/yr we had to implement crisis procedures. We raw water risk to the government and that was waste business in mainland China. Over the years, Oscar has also been actively involved Turnover, 2011 €33.65 million brought in bottled water and we launched a very important. in important projects such as Shanghai Pudong and Chongqing, and has witnessed the Network 595 km rapid development of public-private partnerships in the water service sector in mainland Non-revenue water (NRW) 8.76% China. Source: Macao Water

44 Brave new world // Water performer of the year Oscar Chu // Macao Water Supply Co., Ltd 45 ROME Global water summit 2012 Brave new world Water performer of the year Sandandrano, Madagascar

Sandandrano and the The water sector in Madagascar water sector in Madagascar 100 Sandandrano is a private company that was Drinking water Sanitation created in 1999 during the country’s financial We introduced a crisis. The company has three departments: 80 studies and research; engineering, procurement new concept in and construction (EPC); and operations and maintenance. All of the works included in this 60 presentation were designed and built by us.

Ambohijanaka, % Madagascar has a population of 20 million. 40 the “social Only around 40% of the population across the country has access to water, and this drops to 30% in rural areas (see figure opposite). 14,000 20 connection”: a children under the age of 5 die every year, collective, private primarily because they lack access to water and sanitation. 0

Madagascar’s Water Code was promulgated on RDC Niger connection for Sierra Leone Burkina Faso Gambia Uganda 20 January 1999. It ended the state monopoly Rwanda in the sector and encouraged private sector Mauritius people who participation. It also ended the concept of Madagascar water as a free good and allowed operators to Source: Sandandrano charge for water. At Sandandrano, we think this cannot afford 10 years. The project was financed by the Swiss is the right approach for a sustainable sector: municipality of Münsingen using the Output- everyone, rich and poor, must pay, but it has to individual private Based Aid model (whereby financing is only be within people’s ability to pay and enshrined released upon the contractors reaching certain in a solid strategy. connections but objectives and completing the works). The same year, we established a 25- want something Sandandrano’s projects year greenfield concession contract in In 1999, four months after the Water Code Ambohijanaka (population 10,000), where better than was published, Sandandrano signed its first the World Bank provided part of the pipes management contract with the town of Sabotsy required for the project (worth about 40% of standpipes. Social Namehana (50,000 inhabitants, 12 km south the capital expenditure – the rest was funded Gérald Razafinjato of the capital Antananarivo). The $50,000 by Sandandrano’s equity). We introduced a contract was for managing the town’s collective Gérald Razafinjato is Company Director of his own organisation, Sandandrano, which new concept in Ambohijanaka, the “social connections standpipes for 14 years; we financed it entirely is a private enterprise working to provide community-level water services. He is a connection”: a collective, private connection through equity. for people who cannot afford individual private hydraulic engineer with 25 years’ experience in drinking water supply and wastewater. supply 5 to 10 In 2004, we pre-financed the installation of connections but want something better than He worked for international consultancies for 10 years prior to establishing Sandandrano. standpipes. Social connections supply 5 to 10 Sandandrano has devised solutions for collective water and wastewater provision, households. collective standpipes in Ankaraobato (55,000 inhabitants) to the tune of $12,000 and signed households. The connections are installed in a including the Monobloc Eau et Assainissement (a water and wastewater unit including a 10-year management contract. The town is communal courtyard and work in just the same toilets, showers, drinking water and a laundry space – the laundry water is used to the first in Madagascar to have reached the way as a private connection (they are metered). flush the toilets), which was shortlisted for the 2010 Suez Environnement Concours Eau Millennium Development Goal on water – more In Ambohimahasoa, 400 km south of the Pour Tous (now the Prix Suez Environnement Initiatives). He pioneered public-private than 85% of the population has access to water. capital, we worked with another firm, AΠR, to partnerships in the water sector in Madagascar and has spoken on the subject in Asia In 2006, the municipality of Tsiroanomandidy rehabilitate and extend the local infrastructure and Africa. Most recently, he won the award for Best Paper at the 2011 Rural Water Supply (60,000 inhabitants) requested our help to build and manage water services for 15 years. We Network Forum. and manage the town’s water infrastructure for brought $30,000 in equity and again, the

46 Brave new world // Water performer of the year Gérald Razafinjato // Sandandrano, Madagascar 47 ROME Global water summit 2012 Brave new world

World Bank financed about $95,000 in pipes. Questions from the panel We’re now working with the World Bank, the Taqsem Khan: It’s an exciting PPP model. What , the French cooperation is your level of NRW? agency AFD and the Ministry of Water on a 15- year concession in the town of Foulpointe on About 15%: we know we lose about 5% at the the east coast. filters, while the rest is lost in the network. Khoo Teng Chye: It’s a very creative and very Conclusion trying initiative: you have to manage a lot of Since our creation we have secured seven stakeholders, the community, and the agencies. contracts in seven municipalities. We now What is the challenge in dealing with all of them supply a total population of 214,000 people. and how do you manage it? Our PPP approach is replicable and sustainable It’s all about trust. With the ongoing political in Madagascar, and our ambition is to supply crisis, international donors have left. As a private water to 1 million people in the next 10 years. operator, we think we have a duty to participate and make our contribution to Malagasy society. Sandandrano in 2012 Our approach is to put together bankable and transparent projects. Length of network 83.5 km No. of connections (excluding Foulpointe) When we put together a $400,000 project, we started from scratch and it was half-way Private connections 715 through the project that the World Bank came Social connections 46 on board: they liked the project. We’re working Public standpipes 125 in difficult conditions because Madagascar is Production capacity 6,320 m³/d only eligible for humanitarian aid and it’s on Water tariff that basis that the agencies are helping us. Private connections $0.50–0.70/m³ Olivia Jensen: What are the prospects of Collective connections $0.25–0.35/m³ Sandandrano moving towards financial Standpipes $0.50/m³ independence? Turnover $273,400 (2010); Madagascar has high-quality spring water in $1.3 million (2011 forecast) one of the towns we supply. At the moment, Profit (2010) 25–30% of turnover we have a run-off from the dam that is going Bill collection rates straight down to the river every night so we’re Private connection 80–100% thinking about using the run-off to sell as Public standpipes 100% bottled water. The profits could help finance new infrastructure. We think we can compete No. of employees 159 with big exporters in Europe and this value Source: Sandandrano added would make us financially independent.

Our PPP approach is replicable and sustainable in Madagascar... our ambition is to supply water to 1 million people in the next 10 years.

48 Brave new world // Water performer of the year ROME Global water summit 2012 Brave new world Water performer of the year Nuove Acque SpA, Italy Nuove Acque and Key factors for success the Italian water sector The know-how transfer programme from Suez Bottled water consumption in Europe Nuove Acque was the first PPP created under Environnement has played a big part in our the new regulation framework of the water success. The company has matured and we 200 sector. We are a joint venture between 37 now have a solid corporate identity. municipalities around the town of Arezzo in We have also invested a lot. If you compare Tuscany (53.84%) and Suez Environnement capital expenditure per inhabitant in the area 150 (Intesa Aretina, 46.16%). We were awarded before and after Nuove Acque took over, it has the contract after a public tender in 1999. gone up from €9/capita to €42/capita. Our The water and wastewater concession covers wastewater collection rate is still low at 63%, but 300,000 inhabitants and we had a turnover of we are working hard to improve it. 100 €46 million in 2011. We have a strong impact on communities and Litres/capita sustainable goals in terms of school education Nuove Acque’s main achievements and community involvement. 50 I think health and safety is emblematic of our management: in 10 years, we reduced the number of accidents by a factor of seven. Vision for the future As well as extending the drinking water The number of people that drink tap water 0

network, increasing wastewater collection, UK

has increased from 18% in 1999 to 57% now. Italy Spain EU 24 implementing our capex programme and Latvia France Poland Ireland Greece Austria Estonia Finland Sweden Bulgaria Slovakia Belgium

This is a big achievement in Italy where water Slovenia Portugal Hungary Romania Germany Denmark growing as a company, we aim to become a Lithuania confidence is low: Italy has the highest level reference in sustainable growth for the local Netherlands of bottled water consumption in Europe (see community. RepublicCzech figure top right). Source: Nuove Acque We’ve improved the quality of our service: we Questions from the panel have been supplying water 24 hours a day since Khoo Teng Chye: Could you tell us about 2004. This may seem incredible – this is Italy the challenges you face in dealing with the after all – but it wasn’t the case before. regulator? We have reduced our energy consumption The regulation framework in Italy is not by 25% in 10 years thanks to innovation and completely clear or fully mature. Long-term NRW at Nuove Acque in 2004 and 2011 green energy production (through biogas planning is therefore an issue. cogeneration, which recovers heat and 1999 2004 2011 produces electricity, and a micro-hydroelectric Also, Italy is facing a financial and economic plant). This is an important consideration in Italy, crisis and although I am confident about the which has some of the highest energy prices long-term, I am not very confident in the short- in Europe (we pay €150/MWh for electricity). term. I think that PPP could be an answer. As Jérôme Douziech We have also reduced our non-revenue water Gérard Payen said in the Brave New World for (NRW). When measured in 2004, the level of Water discussion (see pp 54-55), financing is After a double Degree in Civil and Industrial Engineering obtained through European NRW was 50%. We have since reduced it to 33%, ? possible but you have to organise revenue first, Engineering Schools, Jérôme Douziech has developed his career within Suez and although this still isn’t satisfactory, it is a and I think this is a step that we have to make Environnement companies, starting 16 years ago. After a few years in technical roles, work in progress (see figure bottom right). in Italy. he evolved progressively to general management responsibilities, including Chief We have also developed our customer Taqsem Khan: Are you recycling water and Network Operating Officer for Lyonnaise des Eaux (2002–2006), Chief Operating Officer Losses > 60% services: we have an emergency text message what is your wastewater treatment rate? (2006–2009) and Chief Executive Officer for Nuove Acque (2009 to March 2012). He holds service; customers can pay their bills at the 60%> L>50% the overall responsibility for the implementation of the concession contract including supermarket; and we have automatic meter The current rate is about 80% for wastewater 40%

With all of the challenges facing the water and wastewater sectors, we sometimes lose sight of the bigger picture.

In this unique experiment we bring together an illustrious panel of experts to discuss the question: what is our perfect water future?

Each panellist was asked to outline what their dream water world would look like in 25 years, and to spell out a master plan to make Speakers include Chaired by it happen. The floor Gérard Payen, President of AquaFed Roger Harrabin, Dr Johan Groen, Chief Technology Officer, Xylem BBC Environment Analyst was then open to Julia Bucknall, Water Anchor, World Bank [ ] questions. Shayo Holloway, Group Managing Director, Lagos State Water Corporation ROME Global water summit 2012 Brave new world A brave new world for water

Master plan Gérard Payen, President of AquaFed I think a prerequisite to reaching our dream is support from government and public opinion. Governments won’t make decisions without Vision public support, so I am pleased to hear that there may be a new Sustainable Development There is no I view 3 main problems that should be solved I think it is possible for everybody to have access Goal on water, post Millennium Development by the next 25 years. to safe drinking water in 25 years. It’s not simple Goals (which finish in 2015). This goal would global policy on because governments and the public opinion • Pollution of water by human activities. include a target for access to safe water and tend to underestimate the needs. At AquaFed, basic sanitation, a target for wastewater • Insufficient access to safe water and basic we estimate that about 2 billion people are wastewater: the management, and a third target for efficiency of sanitation. using unsafe water every day and that another water uses. I think these kinds of messages are 1 to 2 billion are using water of unknown UN has never • Growing water scarcity. very important. quality. Worse, access to water is deteriorating discussed the Pollution first: my dream is that in 25 years, in the urban half of the world. More efforts and I would also like to work on terminology. Let wastewater pollution is under control all around increased political priority are needed. me give you an example: before 2002, the word the world. We regularly talk about wastewater sanitation meant nothing in global circles. For Finally, I hope that in 25 years, public opinion problem and it treatment technologies at this conference, so the last decade, it has meant access to toilets, about water scarcity will have changed, and we may think that wastewater is managed. This but never wastewater. This is very strange to that we’ll stop thinking about it as a curse from isn’t covered by is not true worldwide. There is no global policy water people, so we can only hope that in the nature. We need to understand that scarcity is on wastewater: the UN has never discussed next decade, global diplomacy will accept that mainly the result of human activities and growing the problem and it isn’t covered by any UN sanitation carries a wastewater component. any UN agency. water demand, and that it must be managed agency. As a result, there are no reliable global by governments. In my view, there is no global We also need to square our statistics. It is often statistics about wastewater and since there are As a result, water crisis, but there is a water management said that 1 billion people do not have access to no statistics, there is no global policy. We are crisis. Governments must understand that their safe drinking water. But many of the remaining in a void at the global level. The best estimate role is not to allocate water resources – I mean population only has access to “improved water there are no we have is that 80% of urban wastewater is split them between various users – but to sources”. This is a specific UN statistical indicator currently discharged into nature without any organise society in such a way that water that is that basically means people who are using reliable global treatment. My dream is that in 25 years, we will used by somebody can be reused by somebody water that is not shared with animals. Is that have reduced untreated wastewater discharge else. For example, urban wastewater can be enough? Certainly not. There are billions of to maybe 30%. This would be a real revolution. statistics about reused in agriculture. Successive uses should be people using unsafe water, at least 2 billion, wastewater. My next point is about access to drinking water. organised in all water-scarce areas. maybe more than 3. So the problem is bigger than many people believe, which is why information and appropriate terminology are necessary. So in my view, the next step is to organise a massive communication campaign about the scale of the problems we face and to correct Gérard Payen misunderstandings. Gérard Payen has been working for more than 27 years to solve water issues in many countries all around the globe. After having participated in the management of Potential obstacles Degrémont, an international group dedicated to water treatment facilities, he headed all The water challenges are going to become water activities of the business group that was named Lyonnaise des Eaux then Suez to increasingly complex, so the solutions required make them (with the brand ONDEO) the world leader in delivering water and wastewater to deal with upcoming issues need to be more services. Today, he works to mobilise the international community towards improving sophisticated. This will also increase the need for water and sanitation services mainly as advisor to the UN Secretary General and as public authorities to regulate how water is used President of AquaFed, the International Federation of Private Water Operators. He is also and managed. director and chair of the Strategic Council of the International Water Association. In the Finally, I think the internet is both a threat and an UN Secretary General’s Advisory Board on Water and Sanitation (UNSGAB) he chairs the opportunity to inform public opinion about the Monitoring and Financing working groups. He has taken part in all World Water Forums water sector. It’s full of untruths and myths about and in most recent intergovernmental conferences relating to water, including the Rio+20 the water sector, so how do you identify what is Summit. right? We need to get the media on board.

54 Brave new world // A brave new world for water Gérard Payen, President of AquaFed 55 ROME Global water summit 2012 Brave new world A brave new world for water

Dr Johan Groen, We cannot Chief Technology Officer at Xylem carry on as we Vision Questions to consider include: I think that in 25 years’ time, we’ll have a • Where do you get the water that is needed? are today. We’ll different perspective on the water cycle: we’ll • What types of resources are needed? look at it holistically and not see the different • Do we need to start to reuse, and how steps in the cycle as distinct processes. To do so, need to do much? Reuse should include organic and however, we’ll need plentiful and reliable data inorganic matter in addition to the water. more with the to monitor the water cycle. We know that even basic things such as the calibration of sensors • How much bio-mass will this generate? are not universal: it’s just a small piece of the What will be done with it? Can it be used same. puzzle but aggregated across the water cycle, it to power wastewater treatment plants and can create distorted results. reduce the energy bills of plants? • How can we reduce the investments I think we’ll no longer have the concept of For instance... needed to obtain the same output? “waste”: everything will be resources, whether Conventional planning has set design it be biomass from which you can generate how can we get boundaries, but can these “rules” be energy or wastewater that can be reused. It changed through considerable process won’t be treated as the by-product of a process, integration and holistic planning? more capacity but as a resource in its own right. We’ll also have eliminated the current inefficiencies in It’s looking at demand and trying to match it out of the same the water cycle such as leaks or unrecovered with the enablers. Some countries are already energy. doing this kind of strategic thinking but few invested amount have thought about energy, the cost of dealing I think we’re also going to see a huge amount of with water processes and the cost of water in technology and resources dedicated to urban terms of energy; this is only just emerging. of money? water infrastructure: a report by McKinsey says that in 25 years, 40% of the world’s mid-sized It’s no longer the policies that are driving cities will contribute 40% of global growth. That’s change, it’s also the cost of operations. I think more than the current megacities contribute in industry has been aware of this for longer, but both the developed and emerging worlds. cities and public utilities are cottoning on. Dr Johan Groen All in all, I think we’ll need to make a lot of Dr Johan Groen is Chief Technology Officer for Xylem, a leading global water adjustments: we cannot carry on as we are Potential obstacles technology provider, enabling customers to transport, treat, test and efficiently use today. We’ll need to do more with the same. I think a big challenge will be tracking our Doing more with the same means, for instance, water in public utility, residential, commercial, agricultural and industrial settings. progress along a roadmap. We have good that the relationship between capacity and technology, but how can we use it to ensure we He is responsible for ensuring that Xylem (a spinoff from ITT Industries) maintains a investment costs can no longer be linear: how meet targets? Getting good data is going to be strong competitive advantage from both a technology and product point of view. can we get more capacity out of the same essential, because if we can’t trust the data, we For more than 10 years Groen has held executive leadership positions in water invested amount of money? I think we could won’t be able to prove that we are moving in chemistry, mining, pulp & paper and engineering/manufacturing companies. double our capacity with the same investment the right direction. costs in 25 years’ time. He has been responsible for restructuring a company from a product focus to It is no longer a question of solving only solutions business bringing global research, technology and customer service into water treatment challenges, but a question alignment. Master plan of purifying water for reuse, and preserving Groen holds a M.Sc. and Ph.D. in chemical engineering and is adjunct professor at I think it is very important to build a clear master organic matter for energy production after the the University in Turku, Finland. He is the recipient of a Life Time Membership in plan from the outset by stating clearly what the extraction of valuable materials for reuse. We need bright talents with a holistic view who are the Technology Academy of Finland. demand is, how you will meet it and how you will deal with the challenges along the way. multi-skilled in science. 56 Brave new world // A brave new world for water Dr Johan Groen, Chief Technology Officer at Xylem 57 ROME Global water summit 2012 Brave new world A brave new world for water

Julia Bucknall, Water Anchor at the World Bank

Vision don’t trust international food markets. I don’t good messages, it can make a big difference. blame them. But in my dream world, I would It’s something the World Bank, the media and There are five things I would like to see have a world food trade system so that people individual countries all have to work on. happening. My first dream is that no economic could use their scarce water – and all their other growth, health, livelihood, security or ecosystem My second point would be information and assets – as productively as possible. be damaged by poor water management. This communication technologies (ICT). The is easy to say, but try to break it down a little bit Finally, I would give the environment an equal potential to do things significantly better into what it implies. voice to industry, agriculture and cities in the thanks to ICT is a very exciting prospect. Mobile decision making process about water. At the phone technology can give poor people an My second dream is rather prosaic: it’s that we moment the way allocation works implicitly in interface with their service provider, be it a all know how much water we have, where it many developing countries is that cities and company or the government, and it might goes and how efficiently it’s used, and that we industry get first crack at how much water they help communities manage their resources. all use the same terms to mean the same thing. need and then agriculture gets what it needs, Combining new technologies such as remote Water use, for instance, means wildly different and if there’s any leftover, it goes to ecosystems sensing with ancient techniques such as things to different people: sometimes it means and the natural flows of the river. Nobody’s mulching and tilling could lead to really big extracting water from a river, sometimes it advocating for the environment so it gets left changes. means a non-consumptive use, other times a out. I don’t think there is a “right” amount for the consumptive use. So I would like us to have the I also think we need to work on international environment – it’s a political and social choice, same terminology, a sort of UN dictionary. diplomacy. We need to do a much better job but let it be a choice rather than the unintended of managing shared resources in international For dream number three, we would have consequence (salinated aquifers, dried up water basins. This is a water issue, but also an governments that know how much water they wetlands etc) of a poorly managed process. energy issue, because of hydro-power. have and that set limits on how much individual sectors can use. Trading amongst sectors could Master plan be a possibility in this dream world, but for Potential obstacles One of the things I would start with is the moment, governments would set limits, The reason I stress terminology and data is that information. When I say information, I mean enforce them and users would utilise the water I worry that if we jumped to things that work taking data (as in plain old ones and zeros) and efficiently within the limits given. Again that’s really well in Australia – such as capping – in actual bits of information, and turning it into not a world we currently live in. countries that don’t have the institutional and messages. It’s amazing what can be achieved data infrastructure, we might actually make For my fourth point, I would solve water scarcity with the right messages. by having food trade that worked and that things worse. The classic example is not capping countries trusted. The statistic that says that We calculated at the Bank that the cost of a consumption when you install drip irrigation: 40% of the world lives in water scarcity refers to lack of sanitation in several countries was about what you’re essentially doing is increasing the countries that don’t have enough water to grow 6% of GDP – the value in lost productivity and marginal value of water so the farmer gets more their own food. That’s what it actually means, health – which has led to huge increases in benefits from each unit of water and therefore and one of the reasons countries over-abstract budgets for sanitation in those countries. It takes has an incentive to double-crop and use all the their aquifers is that they’re trying to reduce a long time to work out this data and you have water he can. It’s very good for that farmer but their dependence on imports, because they to make assumptions, but when you turn it into it might worsen the overall resource situation. However, if you can cap consumption to some safe limit, then drip irrigation is fantastic. Julia Bucknall Water use means wildly different things Politics could be another stumbling block. I Julia Bucknall is currently the Manager of the World Bank central unit for Water, known think it’s very difficult to get people to accept as the Water Anchor. She also worked as a Lead Natural Resources Specialist for the paying for services, especially when the service World Bank’s Middle East and North Africa region. She was the lead author of a flagship to different people... I would like us to is bad or comes from a government you don’t publication on water in the region, “Making the Most of Scarcity”. Over the past fifteen trust. The politics of capping consumption is years, Julia has worked on water investment projects and analytical work in North Africa, have the same terminology, a sort of also very delicate. Even countries that manage Central Asia, Central Europe, Cambodia and Central America. She earned a Bachelor’s water really well struggle politically to get Degree from Cambridge University and Master’s Degree in Environmental Policy and UN dictionary. it right. So, if we can fix the politics and the Planning from MIT. governance, we can fix most problems.

58 Brave new world // A brave new world for water Julia Bucknall, Water Anchor at the World Bank 59 ROME Global water summit 2012 Brave new world A brave new world for water

Shayo Holloway, Group Managing Director at the Lagos State Water Corporation

Vision Master plan “I have a dream”: that there is universal access to We must develop more robust demand-side To achieve drinking water in 25 years’ time. management globally, and especially in Africa, through methods such as metering and Presently about 1 billion people in the world universal access leakage control. If we are able to devise a robust do not have access to safe drinking water; 300 demand-side management plan, we may find million of those are in Africa. 70% of the earth’s in 25 years... we that we have more resources than we thought. surface is covered by water and only 3% of that is fresh water, 97% of which comes from Then of course you need to develop a master must have more underground aquifers. Now both surface water plan locally. For instance, in Lagos State we and groundwater are under massive stress, have designed a 10-year master plan for integrated water groundwater from over-pumping and pollution, 2010–2020: over that period, the population surface water from pollution and climate of Lagos state is projected to grow from 18 management. change. to 29 million, which will make Lagos the third largest megacity after Beijing and Mumbai. Our For us to achieve universal access in 25 years, cornerstones to meet the increased demand when the world population will have another 2 will be efficient use of water, robust demand- billion people, we must have more integrated side management, less focus on the supply side, water management. The UN needs stronger and integrated water resource management to political resolve to address the riparian rights of The UN ensure our supplies are reliable. countries situated along river basins. needs stronger What is presently going on in some parts of Potential obstacles the world is worrisome. I hope that Global Shayo Holloway Water Intelligence will be a driver in getting the It is imperative that the UN gets involved in political resolve transboundary water basins, because that could Shayo Holloway is a dual Degree engineering graduate of Morehouse College and Georgia UN to protect the rights of weaker countries downstream. be a major stumbling block. Transboundary to address Institute of Technology. In the year 2000, in line with the Lagos State Government’s water basins could be a source of regional intention of private sector participation in the water sector, he was appointed General My vision also includes more efficient use cooperation, socioeconomic development or riparian rights Manager of the team from the private sector to steer the Lagos Water Corporation of water. There’s no reason why we cannot a source of major conflicts. Poor downstream towards privatisation. In December 2006 he was appointed Group Managing Director of reuse wastewater for irrigation. Presently, countries that are unable to access water food and agriculture use about 80% of of countries the Lagos Water Corporation, responsible for the management of the corporation and its because of pressures from their more powerful available freshwater resources. If we can ongoing World Bank Project, the development of a 10-year water sector Master Plan with upstream neighbours will have no choice but reuse wastewater for agriculture and process to revert to acts of terrorism, as it were. So we situated along emphasis on private sector participation to meet expected water demand by 2020 when industries, we should be able to achieve must address this issue through an international Lagos State will have a projected population of 29 million. sustainability. That is my dream. body. river basins.

60 Brave new world // A brave new world for water Shayo Holloway, Group Managing Director at the Lagos State Water Corporation 61 ROME Global water summit 2012 Brave new world A brave new world for water

Questions from the audience

Chair: Does the panel agree that water doesn’t make sure that they’re not exploiting the of the water sector, but it is normal that an important point: water has to be a good Holloway: I think we were more focused on come free? monopoly. governments organise the services, water investment. When it doesn’t recover its costs, the supply side 10–15 years ago because first, supply and so on. As a private operator I it’s not a good investment. the world population was less numerous and Gérard Payen: The UN resolved that everybody Dr Johan Groen: We talked about the need know that it works, it has delivered many second, funding was more available. But now has a right to access safe water. It is a human to have a master plan earlier so that we have Question: Would you have had the same good results and private operators can do there’s so much competition for the limited right we recognised one and a half years ago visibility. But then I think that we need to give dreams 11 years ago, when there were only the job but as mandated by governments. resources that we must look at the demand but in this resolution, it is clearly stated that utilities freedom to meet that demand and 6 billion people? Personally, it’s the first time side. water should not be free. It should be made deliver the product. As for the question of costs, Sylvia Wisniwski, Finance in Motion: I’ve heard about demand management. affordable for everybody but not free. So in my there’s always a cost involved in delivering a What strikes me is that the focus so far Ghassan Ejjeh, Besix Sanotec: I fear that Bucknall: I think that 11 years ago we would view, it’s not a debate anymore, the problem is product whether it is in 5 or 25 years from now. has been very much on policy, roadmaps time is not on our side. You are talking about have talked about demand management, The only in the how. and so on, but what about finance? How 5 years, 10 years. But if you lived in Yemen Holloway: I don’t think that governments but probably not necessarily in those terms. will these plans be implemented? Should or in many African countries, you wouldn’t Shayo Holloway: The only water that I believe is should be totally divorced from the water We would have talked about non-revenue governments contribute to financing? And think that you have 5 years. The crisis is water that I free is rainwater, sea water and untreated water. sector. Government is required as a catalyst water losses, efficiency and things like that. what about the private sector, the water today, so it’s all very well to debate here Once there’s a cost of production involved, to move the vehicle towards the objective. But if we’d run this panel 11 years ago, we companies themselves but also institutions in Rome, but we are talking about places believe is free water can’t be free. Without any doubt, the private sector is would have talked a lot less about water in like us, private equity funds, venture capital where time is already up. We must find important, imperative even, with a strong agriculture; we would not have seen the Christopher Gasson, Global Water Intelligence: funds, investment banks, retail banks and quicker solutions or cope with the civil unrest regulatory agency, but you need the potential of ICT to help us solve some of the is rainwater, There are two fundamental failings in the international finance institutions? and the wars that will result. government to get the ball rolling. sector’s problems; and we wouldn’t have water industry. I think the first one is that it’s a Payen: Deciding how much of the cost seen the energy connection as much as we Chair: Thank you very much, that’s a salutary sea water and command economy, it’s not a demand-driven Julia Bucknall: I don’t think any of us would should be borne by the government, public do now. reminder of the urgency of the problem. market. It’s not like customers can say what disagree with the idea of getting governments budgets, taxpayers and users depends on they want and it will shape the product. The out of urban service provision. I think that untreated water. local situations. But the first question should water industry is shaped by governments and makes a lot of sense, but the government be: is there enough money to address the people in closed rooms thinking about what still has to regulate, so the idea that the needs? Is there enough money to provide is good for people. So how about we ban all government is not involved in the urban water water to the whole city, to collect wastewater, governments from having anything to do with sector is not, I think, realistic. It’s different in rural to treat it, to collect stormwater and so on? the water sector? That would enable utilities to areas and in irrigation, and in water resource The question is about the economics of the have their own financial independence and to management, which is essentially a public Once there’s water sector: there is no finance if there is no respond to demand. activity, so I think the water sector is not limited sound economics. Nobody will lend money to urban utilities. a cost of Chair: I think the panel will agree with you to utilities if there is no credible anticipation about the potential dynamism of the private Payen: I agree that water service provision in the revenue of the utilities; so revenues production sector to solve problems. But one of the key is unlike demand-driven markets. Even if have to be organised first – whether through things that has come up in this discussion is people find that they need a water service, subsidies and/or payment by users – but involved, water the need for a long-term plan for the water they have no other option but to wait for their they have to be credible. Then you can think sector as a system. Can water companies deal governments or utilities to bring it to them. about borrowing money, external finance, etc. with the system as a whole if they’re being set Your idea of having governments banned can’t be free. In that respect, it’s true that the recent up to answer to the individual needs of people from the organisation of public water services global downturn has made things harder, wanting a tap? Can we really envisage that they has worked in the past, but we lived in a less but it won’t be indefinite and banks are still would deal with watershed management right complex world then. Today, world population financing water projects – happily. But don’t through to coast pollution? is 7 billion and increasing. Water scarcity is mix financing, lending and economics. Today increasing because of growing water demand, Gasson: I think that one has to treat water we have a real problem with the economics. and this is a major reason why governments utilities as companies supplying a product. The sector is underfunded, so we cannot should be involved: they are the only ones that They don’t need to be assigned overarching address the needs. have the legitimacy to say, “The city needs more responsibility for all sorts of other things. Things water, so I will force my culture or the industry Bucknall: I think that public funds have to be such as transboundary river issues are not to use less water this year.” used to crowd in private funds rather than water utility issues. It should be straightforward trying to finance everything, because they business, an issue between the utility and its It is important that the interests of political simply can’t. I also think that Gérard makes customers, and possibly somebody should parties don’t interfere with the organisation

62 Brave new world // A brave new world for water Questions from the audience 63 The 2012 Global Water Awards The best of the best in the international water & desalination industries

Award categories Water company of the year Desalination company of the year Water deal of the year Public water agency of the year Water reuse project of the year Desalination plant of the year Industrial water project of the year Water technology company of the year Water performance initiative of the year Water technology idol Awards presented by [ Dr Craig Venter ] ROME Global water summit 2012 Brave new world The 2012 Global Water Awards

Judges’ verdict: The acme of joined-up Water company thinking for the global water sector. of the year Distinction DISTINCTION For the water company that made the most Global Water Awards significant contribution to the development of Degrémont 2012 the international water sector during 2011. Welcome to the What is it? The €1.6 billion-a-year specialist water treatment Winner WINNER plant arm of -listed Suez Environnement. Global Water Awards CH2M Hill 2012 What has it done? The acme of 2012 Global Water Awards What is it? In 2011, Degrémont showed that being aged 72 An employee-owned consultant engineering doesn’t mean it’s time to slow down and take joined-up firm with annual revenues of $6.3 billion in things easy. As well as securing a clutch of large- 2010, around a quarter of which are derived scale design-build projects, the firm placed a thinking for The Global Water Awards recognise what from water-related activities. Its OMI division renewed focus on its equipment and services has a portfolio of operating contracts in the U.S. business, dominating the Australian O&M the global water sector. market and bolstering its industrial wastewater senior executives across the international offering. What has it done? water sector. water industry have acknowledged as the In 2011, CH2M Hill’s global water business went What makes it special? from strength to strength. The acquisition of • The design-build bias of Degrémont’s business Halcrow gave it a significantly strengthened has always meant that its revenues are lumpy. most important achievements of 2011. presence outside its core North American The signing of an €840 million 10-year O&M market, while the launch of its grassroots contract in Adelaide and the securing of water initiative WaterMatch in October has the preferred bidder status on a similar contract potential to take the concept of water reuse to a in Perth last year show that the company is whole new level. serious about promoting its credentials as a services business. It will also help to increase What makes it special? revenue visibility going forward. • 75% of CH2M Hill’s water-related revenues are • The rebalancing did not come at the generated in North America. For the firm to expense of Degrémont’s core design- be taken seriously as a global water player, it build business: the firm continued to win needed to diversify, and the 2011 acquisition landmark contracts in 2011, securing deals of Halcrow provided the perfect platform for to build a 350,000 m³/d municipal WWTP in They are chosen by way of a free vote growth outside its traditional markets. Prague and a 50,000 m³/d industrial WWTP An unbeatable given to all subscribers to Global Water • CH2M Hill’s innovative WaterMatch initiative serving the Wuhan Chemical Industry Park Intelligence and Water Desalination harnesses the power of social networking to in China. blend of fresh Report, as well as to members of the promote the beneficial reuse of municipal • Degrémont’s plant expertise is backed up International Private Water Association and effluent by industry and agriculture. the International Desalination Association. by a vast internal pool of technological and vision and The website, which operates on a non- R&D knowledge. In 2011, the company The winners were announced at a special commercial basis, uses geospatial mapping awards dinner held at the GWI/IDA used data from its unique plant reference commitment to connect water generators with water portfolio to develop a series of online tools conference in Rome on 30th April 2012 in users in real time, thus promoting water the presence of Dr Craig Venter. to help clients reduce opex and assess in a changing stewardship in a unique new way. GHG emissions. It was also awarded a The winners and distinctions in each • The inertia of many public policy officials patent for its iBIO process, which removes category receive a crystal glass trophy in the U.S. is the source of much frustration selenium from flue gas desulphurisation world. encapsulating a globe emblem. All for forward-thinking leaders in the private (FGD) wastewater streams, and continues shortlisted entries, including highly sector. CH2M Hill’s partnership with the to develop new solutions in the field of commended entries, receive a framed University of Kansas, signed in August medical water, aided by the acquisition of certificate with the judges’ verdict included. last year, is a proactive approach towards ultra-pure water specialist AmeriWater last educating emerging local government June. leaders in new and cost-effective strategies Judges’ verdict: An unbeatable blend of fresh for service delivery. vision and commitment in a changing world. 66 Brave new world // The 2012 Global Water Awards Water company of the year 67 ROME Global water summit 2012 Brave new world

Highly commended system last year, and filing patents for Abengoa desalination, low-pressure membrane and sludge treatment applications. What is it? A publicly traded Spanish construction group. Judges’ verdict: No other water company did Abengoa co-ordinates its water activities as much to promote its credentials abroad last through Abengoa Water, which is responsible year. for developing, financing and operating the No other group’s portfolio of water treatment plants, as Highly commended well as its research and development activities. GS Engineering and Construction water company The Abeima division supports Abengoa Water What is it? by providing EPC (engineering, procurement One of Korea’s largest EPC (engineering, and construction) services. did as much procurement and construction) companies. What has it done? Through Inima, it is also active globally as an to promote Abengoa was active everywhere in 2011, owner/operator of wastewater treatment and winning its largest water project to date (in desalination plants. its credentials Mexico), while securing its first desalination What has it done? project in West Africa, consolidating its presence The environment division of GS E&C entered in China and the US, and branching out into abroad last Europe and the Americas in spectacular style Turkey. No other company did as much to last year with the €231 million acquisition of promote its credentials abroad last year. year. Spanish plant owner/operator Inima. It also What makes it special? consolidated its growing presence in the • 2011 was the year Abengoa’s water business Middle Eastern EPC market, while continuing to really took control of its own destiny. The innovate at home in Korea. group bought out minority shareholders in What makes it special? Befesa, and rationalised its water activities • Up until last year, 87% of the group’s into two complementary divisions. The overseas revenues came from the Middle development, finance and O&M expertise East. The Inima acquisition not only provides has been brought together in Abengoa GS with a ready reference base of projects Water (formerly Befesa Water), while the EPC in Europe and the Americas – it brings with business is now housed in Abeima. It is an it a wealth of expertise in international arrangement that benefits customer and operations contracts to add to its core EPC contractor alike. proficiency. • The Zapotillo project in Mexico is Abengoa’s • In 2011, GS E&C’s contract wins at home largest water project to date, involving the Took the included a 21,000 m³/d underground design, construction and 25-year operation water reuse facility serving a housing of a 328,230 m³/d water treatment plant development in Korea, and a 27,000 m³/d international and a 139 km pipeline. The Abengoa group overground WWTP with a unique helical companies clubbed together to present an superstructure. It is the ability to overcome water market irresistible bid which came in significantly these sorts of construction challenges lower than that of its nearest competitor. that will make the ‘new’ GS a fearsome by storm in • Abengoa cemented its reputation as a competitor on the international stage. desalination pioneer in 2011, winning • A technology partnership with LG its first BOT project in Ghana, signing an 2011. Electronics and access to competitive MOU to develop up to 800,000 m³/d of funding from Korea’s EXIM bank will give GS new capacity on Changxing Island in the edge when it comes to pitching for new China, finalising the construction of its business in the BOT (build-operate-transfer) first brackish water desalination plant in market. The group deserves a gold star for Texas, and commissioning the Hounaine its vision. plant in . Its 40-strong research team continues to engage in cutting-edge R&D Judges’ verdict: Took the international water activities, designing a pilot remineralisation market by storm in 2011.

68 Brave new world // The 2012 Global Water Awards ROME Global water summit 2012 Brave new world The 2012 Global Water Awards

its UF technology for seawater pretreatment, • Not content with its achievements in the copper mine in Chile, and secured a hat-trick Desalination company or investing in proprietary energy recovery Gulf thermal market, Doosan continues to of contracts to supply 11,200 m³/d of capacity systems, GE Water has been quietly pushing make progress with large-scale RO projects, for the Wheatstone LNG complex in Western of the year the frontiers of technology to meet the commissioning the 136,260 m³/d Shuwaikh Australia. For the desalination plant supplier which needs of its core industrial customers. SWRO facility in last year. What makes it special? made the greatest overall contribution to the Judges’ verdict: Pushing the frontiers of desal Judges’ verdict: Showed unmatched prowess desalination industry during 2011. • The partnership with Marubeni has proved technology to new limits. in both thermal and membrane markets. to be an inspired move, providing access Winner to the burgeoning mining market in Latin Pushing the WINNER Distinction DISTINCTION Highly commended America, where Marubeni has significant GE Water & Process Global Water Awards 2012 Global Water Awards interests. Osmoflo’s first O&M contract in Technologies Doosan 2012 Osmoflo frontiers What is it? Chile – won last year in the face of intense competition from more established players What is it? What is it? An Australian membrane specialist providing – is only the tip of the iceberg, while its The water technology subsidiary of General Doosan Heavy Industries and Construction is a desalination solutions to industrial clients. It is of desal remote plant operating expertise greatly Electric, housed within the GE Power & Water division of South Korean conglomerate Doosan 40% owned by Marubeni. technology to division. Corporation. It is involved in a range of industry enhances the value proposition. sectors from power generation to construction, What has it done? • The Wheatstone complex is one of the What has it done? as well as desalination and water treatment. Over the last 12 months, the company has biggest resource projects in Australia, and new limits. After buying Ionics in 2005, the industrial giant extended its reach in both the SWRO and success there is a ringing endorsement What has it done? seemed to spend years struggling to find a way produced water treatment segments in of Osmoflo’s industrial expertise, building of engaging with the desalination industry. Last 2011 was another barnstorming year for Australia, and expanded into new international on the success of a previous contract year, however, everything finally seemed to Doosan in the Gulf. The company dramatically markets. It won a six-year contract to operate serving the Gorgon project. It showcases come together. Putting its imagination to work, scaled up its MED backlog, bagging projects to a 2,000 m³/d RO plant serving the El Tesoro Osmoflo’s flexible approach to working the company established itself as the dominant supply Saudi Arabia’s Saline Water Conversion technology supplier in two of the fastest Corporation with a 68,190 m³/d unit for the growing market niches: industrial wastewater Yanbu Power plant, and for a 54,552 m³/d evaporation for the oil and gas market, and two-unit plant for Marafiq – and all the while containerised modular desalination plants commissioning one of the largest ever MSF available for rapid deployment. plants, the 459,146 m³/d Shuweihat 2 project in the UAE. Meanwhile, its membrane arm Doosan What makes it special? Hydro continued its foray into the North • Over the space of a year, GE Water’s American RO market with the commissioning evaporation business secured five projects of a 4,353 m³/d BWRO plant for Bayonne Energy CREATE. recycling water from the Canadian oil sands. Centre in New Jersey. This is the kind of tough environmental Showed challenge that the company’s What makes it special? Ecomagination initiative was designed to • Shuweihat 2 was the largest desalination ENHANCE. unmatched address, and its success is undoubtedly plant to be commissioned anywhere in a triple win: for GE’s customers, for GE the world in 2011, while its auxiliary load prowess in itself and for the delicate environment of consumption of less than 3.9 kWh/m³ is the Northern . lowest of any MSF installation to date. It SUSTAIN. • Customers for small to medium-sized underlines Doosan’s commanding position both thermal desalination plants were once tied to in the MSF market, and proves that it has effectively wrestled the initiative away from poorly performing assets which never quite Partnering with our clients, AECOM helps them and membrane met their needs. Then GE developed its former top dog Fisia. realize their visions reliably and efficiently, by modular containerised desalination plants, • Doosan pulled off a stunning coup with creating solutions that outperform convention. markets. revolutionising that sector of the market. It a direct award from SWCC for the Yanbu brought together cutting-edge technology, plant – the company had never built an lean manufacturing, innovative ownership MED unit even one tenth that size before. www.aecom.com models and short lead times to deliver a The fact that this was quickly followed up knock-out proposition which was all- with a second large MED win at Marafiq conquering in 2011. was an impressive display of chutzpah, • Whether it is lowering the operating pH for underscoring confidence in the outlook for its industrial wastewater evaporators, using large-scale thermal projects. 70 Brave new world // The 2012 Global Water Awards ROME Global water summit 2012 Brave new world The 2012 Global Water Awards

with its customers – two of the plants are market in Latin America. blueprint for future Mexican water BOTs. being purchased outright, while a third is • When it wasn’t taking large bites out of the • The complexity of the financing itself was Comprehensive Flow Control Solutions being provided under a 12-month rental market share of industry behemoths, Valoriza compounded by the sheer number of agreement. spent the last 12 months developing its stakeholders involved. Despite this, the for Water Treatment Industries – • Osmoflo’s leading position in the global reach in other ways, opening two key parties skilfully negotiated their way to desalination segment for coal seam gas new international offices and supporting financial close, barely pausing for breath even Australia’s from one Single Source. water was reinforced in February 2011 with the R&D initiatives being undertaken at the when the ruling state government changed the commissioning of a unique 1,500 m³/d Australian National Centre of Excellence midway through the financing talks. dominant containerised plant. The RO facility can be in Desalination. This demonstrates the • The investment portion of the tariffs will be decommissioned from one site, relocated company’s commitment not just to building covered by the state government through player took and be fully operational again within market share, but to advancing the interests a payroll tax, while the operational part of As a customer-focused project management five working days, giving client Santos of the industry as a whole. the tariff will be paid with the earnings from the flexibility to move the unit between on the world company, InterApp supplies individually tailored Judges’ verdict: Cemented its place among a water supply contract with Interapas, the produced water storage dams to maximise the top stars of the desal firmament. water utility serving the Mexican city of San flow control solutions to the water treatment well operation across a large area. With Luis Potosí. A $4 million credit line extended in 2011 – industries around the world. the produced water treatment market in by Banorte provides extra comfort in the Australia expected to grow exponentially, case of a tariff shortfall. and won. the ability to furnish flexible solutions will Water deal of the year Judges’ verdict: An elegant solution to a have CSG producers beating a path to For the deal, contracted in 2011, which made uniquely complex problem. Osmoflo’s door. the biggest contribution to the advancement of public-private partnerships in the international Judges’ verdict: Australia’s dominant player water sector. took on the world in 2011 – and won. Distinction DISTINCTION Global Water Awards Mundaring, Australia 2012 Highly commended Winner WINNER Global Water Awards What is it? Cemented its El Realito, Mexico 2012 Valoriza Agua An A$300 million (US$305 million) financing What is it? What is it? package to support the construction of the place among The water services division of Spanish A $214.8 million finance package to fund the 165,000 m³/d Mundaring water treatment plant construction and property development group El Realito Aqueduct project in Mexico. The in Western Australia. The plant’s capacity is the top stars Sacyr Vallehermoso. infrastructure includes a 86,400 m³/d water expandable to 240,000 m³/d. What has it done? treatment plant, three pumping stations and Who is responsible? of the desal Valoriza cemented its place among the rapidly a 132 km-long aqueduct. The deal reached The seven-year club loan which formed 85% rising stars of the desal firmament in 2011, financial close in July 2011. of the financing package was provided by firmament. breaking new ground in more ways than one. Who is responsible? BTMU, BBVA, BNP Paribas and WestLB. The 15% Having commissioned the first phase of the Banco Santander (México), S.A. teamed up equity portion was split amongst Acciona landmark Southern Seawater Desalination Plant with domestic banking institutions Banobras, Agua (25.05%), Trility (25.05%) and Lloyds TSB’s (SSDP) in Australia, the company successfully Banorte and Banco del Bajío to provide infrastructure fund Uberior Investments (49.9%). negotiated its way to financial close on the $97 million of senior debt via an 18-year loan, RBS acted as financial adviser to the winning 320,000 m³/d SWRO plant at Ashdod, finally Helena Water consortium which will construct Specialised in desalination, sewage treatment, paying an initial margin of 2.75% over the local putting spade to earth at the site in October. and operate the plant for a period of 35 years. drinking water, industrial water treatment and other interbank rate. The project company, Aquos An elegant applications. Among many other products, our range What makes it special? El Realito S.A. de C.V. (51% owned by ICA and What makes it special? features valves from DN 25 to DN 1600. • The awarding of the SSDP back in 2008 49% by aqualia) provided 25% of the project • The Mundaring financing was a significant put Valoriza on the international desalting cost in equity. FONADIN, Mexico’s national procurement milestone for the Water solution to map for the first time. The successful infrastructure fund, contributed the remaining Corporation, marking the first privately commissioning of the 140,000 m³/d plant $74 million of the project cost by way of a grant. financed water project ever undertaken in a uniquely last August means that a map is no longer ICA and aqualia are acting as EPC contractors. Western Australia. required – Valoriza has well and truly arrived. What makes it special? • The increased refinancing risk inherent complex Client Water Corp was so convinced, it • It is the first time that a privately funded in the short-term debt package was immediately awarded a contract to double Mexican water project has featured a overshadowed by the client’s commendably problem. www.interapp.net the size of the plant to 280,000 m³/d. Part of Industrial Valve Solutions from the AVK Group tailored cashflow waterfall system involving pragmatic approach in negotiating realistic • The awarding of a 12,000 m³/d SWRO plant three different trusts. This provides an extra terms in the wake of the financial crisis. in Mantoverde, Chile last year marked the level of financial security to both the public • The deal was closed within five months of company’s entry into the lucrative mining and the private partners, and will act as a the preferred bidder being selected, and

72 Brave new world // The 2012 Global Water Awards Water deal of the year 73 ROME Global water summit 2012 Brave new world ssels.co ve m el has clear potential to act as a blueprint for Highly commended b the procurement of future greenfield water Soreq, . assets in Western Australia. What is it? w Judges’ verdict: The blueprint for private A $500 million long-term non-recourse infrastructure finance in Western Australia. financing package to fund the development of w the world’s largest reverse osmosis desalination The blueprint Highly commended plant at Soreq in Israel. w Muharraq, Bahrain Who is responsible? for private What is it? Israeli financial institutions Bank Hapoalim More than 40 years of proven A $250 million debt package arranged to fund and Bank Leumi put up NIS600 million infrastructure the 160,000 m³/d Muharraq sewage treatment ($200 million) of debt funding, with a further project in Bahrain, the first – and so far only – $200 million (€142 million) coming in the finance in water/wastewater PPP to reach financial close in form of a 22-year €-dominated loan from the experience the Middle East since the beginning of the Arab European Investment Bank (EIB). The developer Western Spring. consortium, a joint venture of IDE Technologies Who is responsible? (51%) and Hutchison Water (49%), is putting up $100 million of equity, and also negotiated an Debt funding for the package was provided by Australia. equity bridge facility, a standby facility and a Export-Import Bank of Korea (Kexim), along with working capital facility. private sector partners Natixis, Crédit Agricole means quality and SMBC. Macquarie acted as financial adviser What makes it special? a t to the developing consortium (Samsung • It is the first time since Ashkelon in 2003 n s Engineering, Invest Abu Dhabi and United that the financing for a major desalination d ru Utilities), while HSBC provided financial advice t project in Israel has featured a local currency A new to the client, Bahrain’s Ministry of Works. tranche. When the project went out to bid, What makes it special? international banks lacked the capacity to extend competitive long-term finance, and NEW...NEW • With financing documents signed less than benchmark for the engagement of local players not only two months after the lifting of Bahrain’s resulted in significant savings in terms of 16” Pressure State of National Safety, the deal proved Middle Eastern debt service, but will minimise refinancing that private finance is still a serious and risk going forward. Vessels are BOTs. viable option for building infrastructure at a time when the financial and political • The developer consortium took advantage available climate in the Middle East is seen as more of low short-term interest rates to reduce hostile to lenders than at any point in recent financing costs during the initial concession now! history. The move provided a much-needed period. Bank Hapoalim and Bank Leumi will boost to a moribund regional project have the option to syndicate out the shekel- finance market. denominated portion of the loan when the short-term loans are replaced by long-term ISO 9001 • Pricing on the 22-year loan was negotiated debt linked to Israeli inflation early in the A glowing in the mid-200s over Libor comparable to operating period. what would have been expected before ASME Code Sec. X tribute to the financial crisis and the Arab Spring. The • Plans to co-locate an independent power pricing will act as a benchmark for future plant at the Soreq site gave the desal P.E.D. 97/23/EC. pragmatism BOTs in the region. financing a unique risk profile. The parties are to be congratulated on successfully • Innovative use of export credit turned a very negotiating the power and water risks, NSF/ANSI Standard 61 tricky financial prospect into an unqualified and shrewd risk whilst keeping the desal financing on a success. As well as providing a significant limited recourse basis. management. lump of direct funding, the Export- Import Bank of Korea backed part of the Judges’ verdict: A glowing tribute to BEL Group Limited [email protected] commercial tranche, soothing the fears of pragmatism and shrewd risk management. BEL Composite America Inc. [email protected] investors during a difficult financial period. BEL Composite Iberica S.L. [email protected] Judges’ verdict: A new benchmark for Middle BEL Composite Industries Ltd. [email protected] BEL Eastern BOTs. BEL Group Limited. Central Europe Office. [email protected]

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Public water agency sustainable reduction in water consumption Highly commended What makes it special? is a vital tool in the face of increasingly Abu Dhabi Sewerage Services Company • ADSSC extended its successful working unpredictable weather patterns. What is it? relationship with the private sector in 2011, of the year with the commissioning of two major Judges’ verdict: Its groundbreaking A state-owned body established in 2005 to For the public sector organisation that made wastewater treatment BOTs in Abu Dhabi programme of education and investment is collect and treat wastewater in the emirate of the greatest contribution to meeting the city and Al Ain. On the operations and truly inspirational. Abu Dhabi. It was originally part of the Abu challenges of water supply in 2011. maintenance side, three contracts were Dhabi Water and Electricity Authority, becoming awarded in the last year, covering almost Distinction independent in 2009. SA Water’s Winner DISTINCTION the entire publicly owned network. A switch WINNER Global Water Awards Global Water Awards National Water 2012 What has it done? to targeted performance-based contracts SA Water, Australia 2012 groundbreaking Company, Saudi Arabia ADSSC’s five-year, AED23 billion ($6.26 billion) rewards excellent performance while What is it? What is it? strategic spending plan reached its apogee in ensuring value for money for the client. programme The government-owned utility responsible for A government-owned joint stock company 2011, ushering in improvements to treatment • Spending on the massive Strategic Tunnel managing water and wastewater services for providing water and wastewater services in capacity and network quality, and achieving a Enhancement Programme, which reached of education around 1.5 million people in the state of South Saudi Arabia. reduction in energy usage through the switch its height in 2011 with the award of three Australia. to a main gravity-driven trunk sewer. The ultra- of the six contracts involved, will improve What has it done? modern sewerage network means that despite performance in the wastewater collection and investment What has it done? In 2011, NWC invested heavily in its asset base, the emirate’s huge demographic challenges, network. The switch to a deep-tunnel The last year has seen SA Water reap the carrying out work on a number of significant the system in its current form will be capable of gravity-driven system has already allowed is truly benefits of a large-scale targeted capital projects to improve wastewater services to handling wastewater flows for the best part of the decommissioning of 36 major pumping spending spree. Combined with an effective needy areas of the country. It also explored new a century. stations, dramatically reducing costs and inspirational. anti-wastage campaign, and an overhaul in energy-saving technologies, while improving energy usage by ADSSC. operating efficiencies – with the help of a new customer service and moving closer to its goal private partner – SA Water has turned around its of financial self-sufficiency. water usage figures at a time when the state is recovering from a prolonged and serious drought. What makes it special? • At the end of 2011, the first households What makes it special? were connected to the massive Jeddah • Water from the 300,000 m³/d Adelaide wastewater network – a hugely ambitious desalination plant was delivered for the first sewage collection, transmission and time to the state capital in 2011. SA Water’s treatment project that was one of a total quick-fire decision to double the plant’s of 66 wastewater projects commissioned capacity means that it will now supply in the Kingdom in 2011. NWC invested enough water to provide half the city’s SAR4.3 billion ($1.2 billion) in wastewater potable water requirements, reducing the infrastructure alone last year. Rewrote the demand for water from the overstretched • The company had its most successful year Murray River. to date in terms of signing contracts to sell textbook • SA Water also invested heavily in treated sewage effluent. It now holds long- infrastructure and operations last year. term contracts worth more than SAR4 billion Work started on a transmission project to ($1 billion), and the income means NWC’s on creating allow two previously separate regions of goal of financial self-sufficiency is closer Adelaide to co-ordinate water supply. At than ever, paving the way for a longplanned a modern, the same time, water recycling plans were privatisation of the wastewater business. extended through a scheme to supply • On the water supply side, NWC made its sustainable 8,000 homes with reused water. SA Water first tentative steps towards tariff reform – a also strengthened its operations and key stumbling block to growth in a country utility. management ability through judicious where water is retailed out at the equivalent engagement with the private sector. of just $0.03/m³. NWC’s vision for reform • 2011 saw the culmination of SA Water’s demonstrates that it is not only prepared outreach efforts in drought water to spend money up front, but that it is fully management, community education engaged in creating a sustainable future for and enforcement that led to a reduction the Saudi Arabian water sector. in water use of around 25% over an Judges’ verdict: Rewrote the textbook on eight-year period. The initiative helped creating a modern, sustainable utility. reinforce the public’s awareness that a

76 Brave new world // The 2012 Global Water Awards Public water agency of the year 77 ROME Global water summit 2012 Brave new world

• While sewage treatment levels are already at • Five water treatment plants were brought 100% in Abu Dhabi, the demand for irrigated up to five-star level under the American water has not succeeded in matching the Water Works Association certification rise in treated effluent flows as a result of a scheme in 2011, while three new WTPs rising population. ADSSC is addressing this were constructed. Nine of the 12 water by identifying new industrial and commercial districts in the country have now been customers for treated sewage effluent, upgraded under the $1.5 billion scheme. potentially bringing in new high-value Judges’ verdict: Completed an awe-inspiring sources of revenue, and reducing run-off into $20bn transformation of Korea’s water supply. the marine environment. Judges’ verdict: Future-proofed its assets for Future-proofed decades to come. Water reuse project its assets for Highly commended of the year Korea Water Resources Corporation For the water reuse project, delivered during decades to What is it? 2011, that represents the most significant A state-owned corporation established in Korea achievement for the industry. come. in 1967 to control water supply from dams and rivers, and manage the bulk supply of water to Winner WINNER local governments and industries. It has also Global Water Awards Brightwater WWTP, USA 2012 taken over the operation of some local water and wastewater treatment plants through a What is it? municipal concession model. A wastewater treatment plant incorporating the What has it done? largest membrane bioreactor (MBR) installation A massive investment into K-Water’s extensive in the U.S. to treat wastewater from 189,000 asset base bore fruit in 2011, as huge people in King and Snohomish counties in improvements in river water quality and water Washington State. The facility has an initial treatment capacity led to a vastly improved peak flow of 495,000 m³/d, which will rise to 645,000 m³/d by 2040. A large proportion of surface water supply. The further expansion SM of its concessions business also put the the treated water is reused for irrigation and corporation in a sound financial position to industrial purposes. enviROInnovation Completed pursue its ambitious international aspirations. Who is responsible? Our commitment to your success What makes it special? The plant is owned and operated by King an awe- • The Four Major Rivers Restoration Project, County, Washington. CH2M Hill was the prime completed in 2011, is a $20 billion mega- design engineer, while CDM Smith acted as Proper management of your process and water treatment systems is essential to ensuring the reliability of your entire operation and construction manager. Hoffman Construction inspiring $20bn plan which saw the dredging of nearly to preserving your assets. At Ashland, we understand the importance of water management and are committed to providing you 1,000 km of the Han, Nakdong, Geum and and Kiewit Pacific were the main contractors on Yeongsan Rivers, along with dambuilding, construction. The MBR unit incorporates GE’s with innovative, environmentally responsible products and services that address your water treatment needs. In keeping with this transformation ZeeWeed technology. wetland restoration and riverbank commitment, we pledge to provide you with a return on investment (ROI) analysis for your Ashland treatment program. So, whether reinforcement. The improved flow through of Korea’s What makes it special? your goal is to reduce your energy, water or chemical use, improve your operational effi ciency or meet a regulatory requirement, you the country’s river system frees up more • Brightwater offers ample evidence of how water for supply to towns and cities, and membrane bioreactors have become the can count on us to deliver and document a meaningful ROI that provides you with a competitive edge. water supply. reduces the risk of devastating floods. technology of choice when it comes to • The construction of the world’s largest major municipal wastewater treatment Learn more about our water treatment solutions and enviROInnovation commitment at ashland.com. tidal power plant significantly reduces the plants. ZeeWeed has come to dominate the energy use associated with the production world of MBR wastewater treatment, and of potable water in Korea. The Sihwa the Brightwater installation is the largest Lake Tidal Power Station cost a total of MBR reference in the world to date. $500 million over its 6-year construction • The plant employs a unique split-flow period, and generates 254 MW of clean treatment system, with the MBR units ® Registered trademark, Ashland or its subsidiaries, registered in various countries ™ Trademark, Ashland or its subsidiaries, registered in various countries energy – the equivalent of a 315,000 m³ a SM treating 98% of the annual flow, while Service mark, Ashland or its subsidiaries, registered in various countries ™ * Trademark owned by a third party With good chemistry great things happen. year reduction in CO2 emissions. a parallel chemically enhanced primary © 2012, Ashland AD-11470

78 Brave new world // The 2012 Global Water Awards CONSOLIDATED WATER ROME Global water summit 2012 Brave new world (‘CWCO’) masters the art Need Water? of providing drinking water to areas where the supply of fresh water is clarification (CEPC) process is able to handle sustainable investment in assets difficult. ...We Take The Risk! scarce and the use of further capacity in peak wet weather flows. Plans are already in place to extend the The two-stream process comfortably franchise with similar plants elsewhere. seawater reverse osmosis accommodates the extreme wet weather of • Customers were easy to find for the (SWRO) desalination is the U.S. Northwest. polished water, with membrane-treated economically feasible. • The project provides a new benchmark TSE offering a cheaper alternative to in sustainable planning and resource desalinated water for industrial customers. management in the United States. The The involvement of the private sector gives With turn-key desalinated The treated water distribution system was a guarantee on treatment quality, and a integrated with outflow tunnelling to commercial contract agreement provides water solutions, CWCO grandest reduce the project’s footprint. The use of extra reassurance for buyers. has a proven track record advanced automation, process containment Judges Verdict: Pioneered advanced of helping economies and an automated restart function wastewater reuse in a highly conservative application following power outages means it can be region. grow by supplying a safe operated remotely. and reliable source of MBR to Judges’ verdict: The grandest application of Highly commended MBR to date on the planet. of potable water. date on the Marrakech WWTP, What is it? Distinction DISTINCTION A 110,000 m³/d wastewater treatment plant We have almost forty planet. SAFI RO plant, Ajman, Global Water Awards 2012 serving the city of Marrakech in Morocco, years of experience in UAE treating wastewater from the city’s 1.1 million designing, building, What is it? inhabitants. The plant is North Africa’s first integrated WWTP, featuring energy generation A 6,000 m³/d reverse osmosis plant and MF operating and financing through sludge treatment and biogas recovery. pretreatment unit treating the outflow from the Treated water is reused for landscaping and desalination plants and existing Ajman sewage treatment plant. The agriculture. polished water is sold on a commercial basis water distribution systems. to local offtakers, with uses including district Who is responsible? This places us in a key cooling. The plant was constructed and is now owned position to understand Who is responsible? and operated by Belgian firm Waterleau, under a 10-year BOT contract with Radeema, the and meet all of your The plant is owned by a public-private public water agency for Marrakech. Civil works partnership between the Government of potable water demands. were carried out by Moroccan firm Sotradema Ajman and Belgian firm Besix. The contract is an Pioneered and Portuguese company Eusebios. extension of the wastewater concession that You can join in our vision advanced covers the main WWTP in Ajman. Membranes What makes it special? for the plant were supplied by Hydranautics • As recently as 2005, Morocco treated just by visiting our website wastewater (RO) and Pall Corp (MF). 10% of its municipal effluent, with an for more information or What makes it special? estimated 2,000 hectares of agricultural land being irrigated with raw sewage. The by asking your financial • The plant is a trailblazer for the commercial reuse in installation of the Marrakech plant brings sale and reuse of treated water in the Middle advisor about ‘CWCO’ shares. wastewater treatment penetration in East, ranking as the first privately owned Morocco’s fourth-largest city up to 100%, a highly reverse osmosis plant to treat wastewater easing the serious problem of pollution in for use by private companies. It proves that the city’s waterways. conservative serious improvements can be made to wastewater assets without recourse to direct • The project was the first integrated WWTP region. subsidy from central bodies. in the country to combine wastewater and sludge treatment with biogas recovery • The plant will operate on a full cost recovery for electricity and heat cogeneration. The basis, with both capital and operating cogeneration unit provides up to 60% of the budgets covered by the income from www.cwco.com plant’s energy needs, reducing its carbon selling polished water – a positive sign in a footprint – and demand on the country’s Traded on the NASDAQ region where water subsidies have made already-stretched electricity grid. Global Select Market as ‘CWCO’ 80 Brave new world // The 2012 Global Water Awards ROME Global water summit 2012 Brave new world The 2012 Global Water Awards

• The successful procurement and reduction in its physical footprint. cities in the world. construction of the plant – which started • In parallel with the development of the • Construction was carried out with an treating wastewater in December 2011 – plant, Thames Water worked with the UK absolute minimum of environmental made significant progress towards attaining government to establish the first regulatory impact – the bulk of the facility is housed in Morocco’s national target of 60% effluent guidelines for the commercial reuse of a disused limestone quarry, with tunnelling treatment by 2020, and provide a blueprint treated wastewater in the country. methods rather than blasting being used Single-handedly for other projects in the region. Judges’ verdict: A blueprint for water recycling to construct the marine pipelines, thus Judges’ verdict: Single-handedly turned an in Britain’s drought-hit capital. minimising the impact on the coastal dune turned an environmental disaster into a benefit. system, and keeping the neighbouring beach open for recreational activities during environmental Highly commended construction. An 8-metre-high vegetated Desalination plant berm will reduce noise pollution and disaster into a Old Ford Water Recycling Plant, UK provide a visual screen to the east and What is it? of the year south of the plant site. For the desalination plant, commissioned The UK’s largest water recycling plant to date, • The plant is 100% powered by renewable benefit. during 2011, that represents the most commissioned by the 2012 Olympic energy, showing that the client and its team impressive technical, financial or ecologically Delivery Authority (ODA) in order to meet its on the ground were willing to work together sustainable achievement in the industry. target of a 40% reduction in potable water to enhance the reputation of the desalination consumption during the Games. The plant industry as a whole. It is a glimpse of what all treats 574 m³/d of wastewater from London’s Winner plants will one day look like. 19th-century northern outfall sewer, using WINNER Southern Seawater Global Water Awards Judges’ verdict: The new champion of the membrane bioreactor technology. Treated 2012 A blueprint for water is sold back at commercial rates to Desalination Plant, green desal movement. the ODA to supplant potable water used in Australia water recycling landscaping and toilet flushing. What is it? Who is responsible? The second large-scale SWRO desalination plant to be built in Perth, Western Australia, with a Thames Water developed the plant under a in Britain’s total contracted capacity of 280,000 m³/d. The seven-year build-own-operate contract with the first 140,000 m³/d phase was commissioned in Olympic Park Legacy Company. It was designed drought-hit August 2011. and funded with the collaboration of the ODA. capital. EPC work was carried out by Black & Veatch, Who is responsible? while the membrane bioreactor units were Phase one of the plant was built for client supplied by Siemens Memcor. Water Corporation by the Southern Seawater What makes it special? Alliance, a consortium of Técnicas Reunidas, Valoriza Agua, AJ Lucas, WorleyParsons and • As the largest WRP built in the UK to Water Corporation. The same consortium is date, the plant will serve as a benchmark currently building the second phase, which will for future water recycling plants in the A clear impact, from bring the capacity up to the full 280,000 m³/d. increasingly water-scarce south of England. Dow provided the RO membranes, with UF Once the Olympic Games have finished, the The new membranes supplied by Siemens Memcor. The wastewater to drinking water. site could provide the first full-scale test of energy recovery devices were furnished by wastewater reuse for non-potable domestic Energy Recovery Inc. champion of purposes as the site is redeveloped. • Successful delivery of the project was What makes it special? the green desal particularly impressive given the location of • Going from initial concept to producing first the site, which lies partly in a nature reserve water in four years, the plant was ordered Dow Water & Process Solutions is having a clear impact around the globe—helping to redefine the movement. adjacent to the huge development site for to be doubled in size before it was even parameters of how water can be utilized to fuel business opportunities, conserve energy resources the Olympics. The efficient layout had to finished, a testament to the inspiration and and improve quality of life. Our reverse osmosis and ultrafiltration membrane technologies combined take account of 57 planning restrictions dedication of the project team. The SSDP with our ion exchange resins and electrodeionization improve the quality of drinking water and the water relating to noise, odour and architecture. represents a milestone in terms of drought- that’s critical to essential industrial processes, and play a vital role in desalination and water reclamation. The ability to remotely operate the plant proofing Western Australia, satisfying 17% of from Thames Water’s headquarters 40 the water demand of 1.6 million people in To learn about solutions and products that can make a clear impact on your industry, visit miles away in Reading enabled a further one of most isolated and climate-vulnerable www.dowwaterandprocess.com

82 Brave new world // The 2012 Global Water Awards ®™ Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow ROME Global water summit 2012 Brave new world The 2012 Global Water Awards

Highly commended Highly commended plant in the world enables Souk Tleta to Distinction DISTINCTION produce water of a consistently high quality, Global Water Awards Ad Dur IWPP, Bahrain Souk Tleta, Algeria Fujairah 2, UAE 2012 despite the challenge of wide fluctuations What is it? What is it? in seawater turbidity, which can spike up to What is it? Bahrain’s flagship seawater reverse osmosis A 200,000 m³/d seawater reverse osmosis plant 100 NTU. A hybrid desalination complex, commissioned desalination plant, an independent water and built in Souk Tleta in the wilaya of Tlemcen in • The shrewdness of design in the reverse in January 2011, which combines a 2,000 MW power project with a capacity of 218,208 m³/d Algeria. osmosis system not only enables minimal A triumph of power generating station with a 454,200 m³/d and 1,234 MW of power production. Who is responsible? use of chemical dosing – including sodium MED plant and an SWRO plant with a capacity A showcase Who is responsible? A joint venture of Hyflux, Malakoff Berhad and hydroxide dosing to meet the product water of 136,000 m³/d. international The project was developed by a consortium of the Algerian Energy Company developed the boron specifications – but eliminates the MED reference Who is responsible? International Power (formerly GdF Suez Energy project for Algérienne Des Eaux, with Hyflux need for coagulants. engineering International Power and Marubeni developed International), Gulf Investment Corporation, subsidiaries taking on the EPC work. The RO • Building and successfully commissioning in an ingenious the project in consortium with the client, Abu Capital Management House, Instrata Capital membranes came from Hydranautics, while desalination plants in Algeria has been in a hostile Dhabi Water and Electricity Authority (ADWEA). and GOSI. Degrémont was the EPC contractor Hyflux supplied its own UF membranes. Energy no picnic. In a challenging environment hybrid plant. The EPC contract was awarded to an Alstom- for the desalination plant, and Hyundai Heavy Recovery Inc. supplied the energy recovery and against the background of regional led consortium, with Sidem (Veolia) supplying Industries for the power element. Toray supplied devices. ILF Consulting Engineers provided instability from the Arab Spring, Hyflux has environment. the MED plant and OTV (Veolia) providing the the RO membranes. technical advisory services. shown considerable tenacity and mettle in SWRO. Toray supplied the RO membranes, and What makes it special? What makes it special? making the project work. Flowserve Calder provided the energy recovery • Ad Dur is the largest SWRO plant drawing • At 450,000 m³/d, one of the largest UF Judges’ verdict: A triumph of international devices. water from the Gulf. It is a potent symbol installations serving an SWRO desalination engineering in a hostile environment. What makes it special? of the acceptance of reverse osmosis as • Power demand fluctuates wildly from a credible desalination technology in the season to season in the UAE, while water region, helping to overturn old orthodoxies. demand is more consistent. Fujairah 2 uses • As only the second IWPP built by the GCC an elegant balance of MED and SWRO countries without any thermal component, Highest efficiency for energy recovery. ™ technologies to consistently provide the after Barka II in Oman, the project has largest output, at the lowest energy cost, fought against the odds to prove that RO Because every drop counts. of any hybrid desal plant anywhere in the technology, allied with robust pretreatment, world. can enable reliable, flexible delivery of water Designed to provide a service life exceeding at a reasonable price. • The plant was one of the first working 25 years, the DWEER™ is “built-to-last,” assuring facilities of its scale in the region to • The plant’s success rights a historic wrong; high availability, proven outstanding performance use a Dissolved Air Flotation (DAF) the failure of SWRO technology to take off pretreatment system for the SWRO phase, in the Gulf is often laid at the door of the and low maintenance costs for decades. Restored the vital in dealing with harmful algal bloom troubled original Ad Dur plant built in 1990. Offering very low mixing and leakage rates, the (HAB) events. During February 2011, the The new facility meets a vital need not only credibility of newly commissioned plant maintained for the people of Bahrain, but for membrane DWEER provides plant owners and operators its production capacity during a severe desalination, putting it back on a path for with high energy recovery rates while further SWRO in the algal bloom which forced neighbouring growth in the region. minimizing operating costs. desal plants to shut down or reduce their Judges’ verdict: Restored the credibility of throughput – a credit to the resilience and SWRO in the Gulf. Gulf. ingenuity of its design. • At 38,640 m³/d (8.5 MIGD) each, Fujairah 2 has the largest MED units of any desal Flowserve Spain S.A. plant commissioned thus far, showing that Avenida Fuentemar, 26-28 in the right hands, even the most mature desalination technology can be pushed to Coslada Madrid Spain 28023 new limits. Telephone: 34.91.660.4600 Judges’ verdict: A showcase MED reference in Telefax: 34.91.674.0433 an ingenious hybrid plant.

84 Brave new world // The 2012 Global Water Awards Experience In Motion flowserve.com

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that even Shell and QP were pushing Industrial water project new boundaries. As a result, the project Ensure continuous water supply through had to be adapted as the client changed of the year specifications during the design phase. For the project, commissioned in 2011, that Despite this, the construction team represents the most impressive technical achieved a timely commissioning and a Managed Aquifer Recharge achievement in the field of industrial water. smooth initial operating period. Judges’ verdict: Deployed every treatment Winner WINNER technology in the book on an entirely new scale. Global Water Awards Deployed every Pearl GTL, Qatar 2012 Distinction What is it? DISTINCTION treatment Cartagena Refinery Global Water Awards A zero-liquid discharge WWTP treating 2012 Demineralisation Plant, 45,000 m³/d of industrial effluent produced Spain technology in at the world’s largest gas-to-liquids complex. Effluent is treated to a very high standard What is it? the book on using pretreatment, oil separation, biological A 12,600 m³/d brackish water reverse osmosis processes and then UF and RO membrane plant, plus an ion exchange treatment plant, an entirely new treatment, in conjunction with evaporation and forming part of the €3 billion Cartagena condensation of the RO brine to complete a Refinery expansion project, the largest industrial scale. full-cycle industrial water recycling process. project in Spanish history. The project was commissioned in August 2011. Who is responsible? The plant was designed and built by a Who is responsible? consortium comprising a Veolia Water/ Saipem The design and engineering were carried out by JV and local construction firm Al Jaber, on Sadyt (Sacyr Vallehermoso). The work was carried behalf of the clients, Qatar Petroleum and Shell. out on behalf of the client and site owner Repsol Membranes were supplied by GE Zenon (UF) YPF. The RO membranes were from TriSep and and Toray (RO). the ion exchange technology by Purolite. What makes it special? What makes it special? • Veolia applied the full scope of its water • The plant triumphed over a number technology expertise to the project, of wastewater treatment challenges, which features a panoply of treatment responding to calls for a zero-discharge technologies to achieve the level of purity concept, and taking feedwater from a required to reinject tainted synthetic number of different sources. Following A benchmark water back into the industrial process. The treatment, no water is discharged to combination of pre-treatment, flotation, the environment, while the brine is zero-discharge wax filtration, oil separation, bio-treatment, continuously concentrated and then

UF, RO plus brine concentration and redirected to an existing high salinity © 2012 Schlumberger solution to evaporation makes this a truly unique plant effluent treatment plant. Whether for strategic storage, supply and demand balance, in terms of its capabilities. • Any interruption in the demineralised water or disposal of excess water, always count on Schlumberger Spain’s industrial • Even for a company with the size and supply to the refinery complex would mean Water Services for the success of your project. Contact us for experience of Veolia, a zero-liquid discharge losses of hundreds of thousands of Euros • Site selection plant of this scale and complexity was a day, meaning the plant design required • Hydrogeological characterization wastewater a huge challenge to design and build. faultless reliability along with adherence to The project, costing in the region of unsparingly strict environmental standards. • Modeling challenge. $640 million, sets a new standard for the • Few wastewater treatment projects have • Operation and monitoring aspirations of the industrial wastewater been built on such a busy site – Sadyt’s • Implementation treatment market. team had to dovetail its activities with • The challenge of designing and another 6,500 workers on the refinery site commissioning the plant was further at its peak. The plant was delivered on time, Schlumberger Water Services, the subsurface experts. compounded by the extreme size and and with a professionalism of execution that complexity of the GTL plant. With a is nothing less than outstanding. water.slb.com/contact liquids capacity of 140,000 bpd, the sheer Judges’ verdict: A benchmark zero-discharge dimensions of the GTL complex meant solution to Spain’s industrial wastewater challenge. 86 Brave new world // The 2012 Global Water Awards ROME Global water summit 2012 Brave new world MAKING MODERN LIVING POSSIBLE

Highly commended Highly commended AEP bioreactor system, USA Gippsland Water Factory, Australia What is it? What is it? New iSave A 600 gallons-per-minute (3,270 m³/d) An innovative wastewater recycling plant biological treatment unit tailored to eliminate combining the treatment of municipal effluent size available toxic selenium deposits from the wastewater from 55,000 people in nine towns, and up to outflow at the Mountaineer coal-fueled power 35,000 m³/d of industrial wastewater from a iSave 40 Sounds the plant in New Haven, Connecticut, through the local paper mill. 8,000 m³/d of high-quality use of an innovative molasses-fed microbial recycled water is sold back to the paper Now covers a flow range 3 3 death knell for treatment system. industry, easing pressure on local fresh water from 7 m /h to 40 m /h sources. Who is responsible? toxic selenium The plant was installed by Bowen Engineering Who is responsible? for the client, American Electric Power (AEP). The project was designed, constructed and in power plant Bowen subcontracted GE to supply and install commissioned by the Gippsland Water Factory its proprietary bioreactor technology. HDR Project Alliance, a partnership comprising effluent streams. Engineering and River Consulting carried out local utility Gippsland Water and three private further engineering work. companies: Transfield Services, CH2M Hill and Parsons Brinckerhoff. What makes it special? • The plant is the boldest demonstration What makes it special? to date of the benefits of using biological • The project proves demonstrably that wastewater treatment techniques to solve the treatment of municipal and industrial the hazardous problems of selenium in wastewater flows can be combined in a wastewater, making it possible for AEP to single facility, despite the disruptive effects meet exacting federal emissions regulations, of the high-strength, nutrient-poor outflow integrAted isobAric erd froM dAnfoss while also cutting the potential of damage from the paper mill. While the two liquid to the environment in a sustainable way. process trains are separate, sludge from the two is combined and either sold as fertiliser, • GE’s proprietary nutrient-fed microbe Pressure exchanger, system offers vastly improved performance or used to generate biogas, a process that Making fresh water possible high-pressure positive Leading the over existing chemical-based treatment supplies 20% of the energy requirements of displacement booster pump methods, guaranteeing an elimination the plant. and electric motor – A revolutionary integrated isobaric all integrated in one single unit. charge on rate of more than 99% of selenium. The • A revolutionary partial oxidation step rapid rate of the removal process means breaks new ground in the treatment of energy recovery device industrial it can compete effectively with the high high-sulphide wastewater streams, while blowdown volumes associated with flue gas minimising the use of electric power, • Most compact design in the RO market desulphurisation (FGD) systems. chemicals and artificial nutrients. Meanwhile, water reuse in • No risk of overflow/overspin at start-up or • The utilisation of a biological technique innovative chlorine removal satisfies Australia. makes the plant self-sustaining, as it only conflicting federal and state advice on post- during operation treatment measures prior to disposal. requires periodical addition of the nutrient. • Easy to install and operate Monthly backwashes can carry biomass and • As the first project in Australia to use removed elemental selenium to clarifiers for membrane bioreactor technology in the • High efficiency — up to 95% safe disposal in landfill. production of recycled water, Gippsland Judges’ verdict: Sounds the death knell for was a guinea-pig for the Victorian The iSave energy recovery device is compatible with the toxic selenium in power plant effluent streams. Department of Health to develop its new recycled water quality management compact APP high-pressure pumps, ranging from guidelines, providing inspiration for the 6.5 m3/h up to 38 m3/h. future of water reuse in Australia. danfoss A/s · ro solutions Judges’ verdict: Leading the charge on DK-6430 Nordborg • Denmark • Tel: +45 7488 4024 industrial water reuse in Australia. Telefax: +45 7445 3831 • E-mail: [email protected] ro solutions www.iSave.danfoss.com • www.ro-solutions.com

88 Brave new world // The 2012 Global Water Awards ROME Global water summit 2012 Brave new world Nalco named 2012 Water Technology Company of the year Water technology Distinction DISTINCTION Global Water Awards By Global Water Intelligence company of the year Xylem Inc. 2012 The Global Water Awards recognize signifi cant achievements within For the company which has made the most What is it? significant contribution in the field of water The newly spun-off water solutions arm of ITT the worldwide water industry. Nalco was chosen by members of technology over the past year. Corporation. It is listed on NYSE with revenues of the International Desalination Association, the Water Desalination $3.6 billion. Report and Global Water Intelligence subscribers.

Winner WINNER What has it done? Nalco is proud to have received this honor. It validates our mission to Global Water Awards provide integrated water management, a holistic solution combining Nalco Company 2012 Having recognised at an early stage the growing At the cutting need for analytical water solutions, Xylem monitoring and control with chemicals, equipment and services. What is it? rounded out its instrumentation portfolio via a Monitoring & Control edge of The $4.25 billion-a-year water solutions provider series of acquisitions in 2011. Its demerger from Precise chemical performance through unique sensors and which was listed on NYSE until December 2011. ITT means it is now positioned for a new phase control algorithms for real time process management by industrial water It is now part of the Ecolab group. of global growth as a stand-alone entity. both onsite and remote personnel What has it done? What makes it special? Chemicals sustainability. Over the last three years, Nalco has come a • What can’t be measured can’t be managed. Proprietary chemicals designed to provide exceptional long way from being simply a water chemicals In the face of increasingly stringent performance supplier. The addition of automation and control regulations affecting water utilities right Equipment capabilities means it now boasts an integrated around the world, Xylem’s visionary leaders A suite of Nalco designed and manufactured pretreatment solutions platform for its industrial customer built a $300 million analytics platform from equipment base. The merger with Ecolab has opened up nothing, topping it off by winning a fierce Services new channels for growth in the industrial and bidding war for prize asset YSI Inc. last July. institutional markets. Over 75 years of specifi c industry experience supplying • It is not all about acquiring intellectual and managing pretreatment systems What makes it special? property. One of Xylem’s first moves as Nalco was specifi cally recognized for its 3D TRASAR® Technology • Nalco’s unique 3D Trasar technology has the an independent company was to ink an for Membranes and the Nalco 360 Service. 3D TRASAR technology ability to measure and control events in real agreement with GE to distribute Zenon has been designed to identify and remove operational threats related time, saving money and the environment ultrafiltration membranes. The move to membrane systems, as well as cooling and boiler systems such as by correctly calibrating chemical dosing. means the company can now offer a fully Having introduced the technology to the comprehensive wastewater treatment fouling, scale, corrosion and biological growth. Nalco 360 Service cooling tower and boiler water systems, portfolio to complement its leading position tracks client water systems and provides round the clock solutions Nalco rolled it out to the membrane market in wastewater pumps. to operational problems. in 2011, and has big plans to do the same in • Xylem’s spin-off from ITT gave rise to the the wastewater arena. largest publicly traded water pure-play Bold forward • Not all mergers are about cost-cutting. by revenues. The renewed focus on water The fusion with Ecolab is all about will enable Xylem to be more responsive thinking and increased growth and impact: Nalco’s in terms of innovation: in 2011 alone, it automation capabilities have the potential launched a new energy-saving wastewater an unswerving to revolutionise water and energy pump and a non-clog diesel-driven consumption within Ecolab’s core sanitising dewatering pump, whilst revolutionising its commitment to business, whilst helping to redefine the way Spektron UV system. emerging market economies engage with Judges’ verdict: Bold forward thinking and an excellence. the water-energy nexus. unswerving commitment to excellence. • Nalco’s industrial process monitoring business, Nalco 360, was introduced a little over two years ago. The accumulated data is now enabling the company to offer both internal and external benchmarking services – thus creating added value for its growing client base. © 2012 Ecolab USA Inc. All rights reserved An Ecolab Company Judges’ verdict: At the cutting edge of industrial water sustainability. 90 Brave new world // The 2012 Global Water Awards B:220 mm T:210 mm S:200 mm

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Highly commended Highly commended Bluewater Bio Ostara Nutrient Recovery Technologies What is it? What is it? A privately held water technology company A Vancouver-based startup which aims to based in London, UK. mitigate the environmental effects of chemical mining by reusing nutrients from wastewater What has it done? schemes. Its Pearl nutrient recovery process Shrewd management and sheer determination recovers phosphorus and ammonia from helped to catapult Bluewater Bio into the wastewater and resells the end product as A masterclass mainstream in 2011. Time and again it has fertiliser. proved that it has the knack of picking the right in how to partners to maximise its growth potential in key What has it done? markets around the world. 2011 marked the start of a new era of international growth for the value-from-waste promote What makes it special? specialist, which emerged confidently from • 2011 was the year in which Bluewater Bio under the wing of Veolia’s cleantech startup proprietary really stepped up to the plate in terms of scheme. putting its proprietary hybrid activated technology. sludge technology in front of global What makes it special? B:260 mm T:250 mm decision-makers. It signed a licensing • Phosphorus is a critical component of S:240 mm agreement with Infilco Degrémont which fertiliser – and a non-renewable resource. will enable it to harness the vast retrofitting Ostara’s nutrient recovery technology can potential in the North American market, remove up to 90% of phosphorus and 20% and secured a key reference with Severn of nitrogen from effluent streams, stemming Trent which should open up the large- downstream pollution and trimming plant scale UK market. It also won a $20 million operating costs by eliminating struvite contract to expand and upgrade the Tubli buildup. WWTP in Bahrain. • The harvested struvite is sold commercially • Bluewater Bio proved last year that it as fertiliser, thus closing the nutrient loop is in pole position in the race to roll up and helping to reduce the environmental Nutrient independently owned filtration companies. impact of industrial phosphorus production. Significantly, the acquisition of FilterClear Customers can hope to recoup their initial recovery has in September will kick-start the company’s expenditure within a three to seven-year entry into the water reuse and desalination time frame. never looked pre-treatment markets. • 2011 was the year Ostara truly broke onto • Since delisting in 2007, Bluewater Bio has the international scene. From a small so appealing. had little trouble attracting private capital reference base in the U.S., the company has to fund its ambitious growth plans. Now built considerable momentum, winning EBITDA profitable, it has continued to projects in Canada and the UK. Regulatory attract interest from top-flight investment drivers mean it is well positioned for further vehicles in 2011, securing an $8 million European growth, as both municipal cash injection from Liberation Capital, and and industrial water users come under paving the way for its next major funding increasing pressure to mitigate their round in early 2012. environmental footprint. Judges’ verdict: A masterclass in how to Judges’ verdict: Nutrient recovery has never promote proprietary technology. looked so appealing.

From ITT comes Xylem. Learn more about the possibilities at xyleminc.com.

92 Brave new world // The 2012 Global Water Awards ©2012 Xylem Inc.

Job # XYL1-WAT-12-05413 Document Name XYL1-WAT-12-05413 Xylem Mantra Ad 210 x 250. User Log Harold Syms Date/Time 6-28-2012 4:49 PM Fonts Location Bleed 220 mm x 260 mm Art Director/Designer None Avenir LT Std 85 Heavy nc-dyoung-mac Trim 210 mm x 250 mm Mac Artist Darren Avenir Next LT Pro Regular NC-StudioColor Live 200 mm x 240 mm Copy Writer None Colors In-Use Cyan Mechanical Scale 1:1 Production Manager Sherry Magenta Yellow Print Scale 100% Account Service Leah/Devon/Lauren Black

CONTENT Hi_Getty_RF_103543087_LessGrain_a.eps CMYK 730 ppi Colors Specʼd 4c Art Buyer John/Jules Xylem_tag_w.eps Traffi c Manager Jimmy H Proofreader None Job Description Mantra Print Publications Global Water Intelligenceʼs Brave New World

XYL1-WAT-12-05413 Xylem Mantra Ad 210 x 250 June 28, 2012 3:49 PM CYAN MAGENTA YELLOW BLACK ROME Global water summit 2012 Brave new world

Water performance Water technology idol For the new technology deemed to be the initiative of the year most promising in bringing down the cost of For an initiative undertaken by a water developing new water resources. utility which represents the most significant commitment to improving the long-term Winner WINNER performance of water services to the public. Global Water Awards Sylvan Source, Inc 2012

Winner What is it? A revolutionary WINNER Armenian Water & Global Water Awards Sylvan Source’s thermal industrial process claims 2012 Sewerage Company to be able to desalt seawater at an 86% recovery performance in rate. Demonstration benchmarks show a total Judges’ verdict: A revolutionary performance 3 production cost of $2.07/m based on operation in a topologically challenging environment. 3 a topologically with a standalone fuel source, and $1.82/m when used in conjunction with a waste heat challenging source. Distinction The system integrates a proprietary environment. DISTINCTION National Water Global Water Awards pretreatment technology that is said to 2012 Company, Saudi Arabia eliminate hard scale while sequestering carbon with a unique heat transfer technology that Judges’ verdict: Showing that automation can improves the energy efficiency of the system. make all the difference in terms of performance. Highly commended Highly commended Ahlstrom Filtration Sandandrano, Madagascar What is it? Disruptor filter media with adsorptive and ion exchange properties for RO Judges’ verdict: Proof that Africa’s private pretreatment. Showing that water utilities can hold their own on the international stage. Highly commended automation INPHAZE Highly commended What is it? The company’s HiRes-EIS module can make all Macao Water Supply Company monitors fouling of MF/UF, NF and RO membranes. the difference Judges’ verdict: Responded to local challenges by delivering reliable service with a Highly commended unique spirit of co-operation. in terms of Porifera What is it? Porifera’s high-flux FO/PRO performance. Highly commended membrane element will be available by the end Nuove Acque, Italy of this year.

Judges’ verdict: Evidence that inspired Highly commended service delivery can result in soaring customer Selenium Ltd. satisfaction. What is it? The company’s Seldox technology can prevent membrane biofouling.

94 Brave new world // The 2012 Global Water Awards A disruptive future

The global financial crisis and recession has that the membrane bioreactor was the last been grinding on for four years and it shows truly disruptive technology, having been used little sign of easing. Expectation and attitudes for industrial effluent treatment since the are being fundamentally altered about our early 1990s, along with a series of municipal A disruptive future: spending priorities and how we use our natural wastewater treatment facilities starting with a resources. How can the sector respond to the pilot plant in 1996, plants of 1,000–4,500 PE in challenges water and wastewater managers 1998–99 and the development of an 80,000 PE face in the most uncertain period we can facility by 2004. remember? How the uncertainties of today Current developments may appear to be of From the Soma of supply management to the a more incremental nature, but when knitted disruptive realities of demand management together, they can have a profound effect on Out of the last a brave new world of water management how we manage the water cycle. Over the past are forging innovation is emerging. A suite of innovations and two decades, the Internet has transformed recession came new applications are transforming the way data capture and dissemination, mobile traditional challenges have been met. Will they telecoms have made data dissemination be given the financial and political backing they almost ubiquitous, while digitisation and the Internet and need? miniaturisation have vastly increased the scope for monitoring all aspects of the water cycle its impact was Chief amongst these is the rapidly emerging and interrogating and acting upon all the data field of smart water. To me, smart water is which is being generated. Water management only really felt about taking advantage of recent technological is moving from the passive recording of past breakthroughs and being able to deploy them events to being able to actively manage the in ways that did not appear realisable until half a decade water cycle to anticipate flood events, pinpoint recently. That in part stems from the pressure leakage, optimise distribution system pressure Written by put on utilities to maintain a business-as-usual later. What and ensure peak process efficiency. Dr David Lloyd Owen, conservatism (staying out of trouble is a safer option than seeking fresh approaches) along There are many in the water sector which would may appear to Senior Advisor at Bluewater Bio with the increasing appreciation that smart view such a degree of control distinctly utopian, water is as much about knitting techniques and but all of these approaches are either at the pre- be emerging [ ] technologies together into a coherent whole as commercial stage or actively being used today. it is about the technologies themselves. For example, Thames Water is trialling various systems for water pressure management this time as and remotely pinpointing leaks. Global Water Disruptive times need Resources, a U.S. regulated water utility has subtle changes disruptive technologies developed a real time smart water metering Out of the last recession came the Internet and service that allows domestic customers to may have just its impact was only really felt half a decade later. understand their water usage in terms of costs What may appear to be emerging this time and volumes as well as how it affects their as dramatic as subtle changes may have just as dramatic electricity bills. Suez Environnement now has consequences further into the future. flood prediction and alerting systems working consequences across river networks. Instances of genuinely disruptive technologies, those that change the way we manage water Meanwhile software systems are in operation further into the are rare events. Perhaps the single most that alert New Yorkers to prevent potential important development in sewage treatment sewer overflows by deferring a bath or using future. was the discovery of activated sludge back their washing machines at peak flow times. in 1913. In a similar vein, the development Other systems used by various utilities align of reverse osmosis for desalination in 1959 water pumping to low cost power availability and its commercial deployment in brackish or ensure that new assets do not need to be water in 1965 and for seawater in 1969 is developed, through using extent systems more proving to be as influential. You could argue efficiently.

Bluewater Bio // A disruptive future: How the uncertainties of today are forging innovation 97 ROME Global water summit 2012 Brave new world A disruptive future

Demand management and from disease and water carrying. As we start it and to a higher standard. Two billion more more efficient water and energy recovery. moving towards smart systems and approaches, people means more pressure on nutrient sustainable management Bluewater Bio’s treatment processes also drive it is about getting more services from fewer, supplies, as well as water resources and the down energy cost and physical footprint. When None of this can work in isolation, neither can better used assets as well as the manifold imperative for sectors to seek to make their retrofitted to an activated-sludge facility either this return us to a water rich past. Instead, economic benefits full coverage brings. activities carbon neutral wherever feasible. Bluewater Bio’s as a planned upgrade or during rehabilitation it is a way to consider a more sustainable Take a look at Singapore; a comprehensive Another shortage is land for treatment facilities, and replacement programmes, the HYBACS® ® water future. I sometimes wonder if supply water infrastructure has catalysed economic especially where urbanisation has taken place process can reduce operational costs over HYBACS management is like putting a plaster on a development. This is a brave gaping wound. It covers things up, but does on an ad hoc basis, let alone with managing the life of the asset, in particular power illustrates the nothing about the underlying problem. Such While water has a low profile at the early the water cycle in mind. Traditional wastewater consumption associated with aeration by up new world an attitude is epitomised by the regulatory funding stage, accounting for just 2–3% of treatment works have a large footprint, usually to 50%. Being fully enclosed and 40% smaller potential benefits reluctance to have universal metering in the CleanTech venture capital investment in recent needing an additional buffer zone round the than traditional activated-sludge facilities, quite detached UK, despite it being the norm in developed years, at the other end, water utility bonds have facility. The capital and operating costs of bulk ancillary power needs from lighting to odour economies. How can we manage water been amongst the safest performers since 2008. sewerage for major extra-urban facilities is a management are also addressed. As these wastewater has resources without adequate data? Successful Successful water management depends on the further challenge. units are materially cheaper than traditional from Huxley’s value of water being properly valued. approaches, this is a classic case of the utility water management and therefore successful Sustaining urban water services needs sewage getting more performance for a lower cost. dystopian to offer us. As water companies are increasingly dependent treatment to be the norm and increasingly on appropriate data capture and deployment. Now it is the time to let for this to be linked to water and nutrient and High efficiency, modular and enclosed systems part of its high innovation shine energy recovery. Properly applied, recovering allow utilities to concentrate their treatment vision. nutrients from sewage can account for 60–70% facilities in compact sites where odours can be Financing needs to be sustainable There are a host of good ideas out there. Getting of our basic crop growing needs. contained. BOD removal To guess the future, let’s look at what we them from the lab bench to the pilot plant let need. At the most elemental level, we ought alone commercial viability requires far more than Energy recovery simply makes good business rate, its SMART to be aiming for truly universal access to safe a shiny piece of kit. Growth has to be managed, sense. Between 2003–04 and 2009–10, the Successful and sustainable (rather than the ’ “improved”) markets properly identified, a fully dedicated proportion of direct costs accounted by management It requires system is geared water supplies and sanitation services by 2030 and trained sales team developed who can electricity for sewage treatment in England Sustainable water management means serving and to sustainable water management by make clear the company’s capabilities to a client and Wales rose from 27% to 38%. Traditionally, a connected urban world where household popular 2050. Sustainable water management means within a few sentences and to turn curiosity it is usually the case that the more you have towards nutrient water provision is truly universal, with all urban matching demand with each river basin’s into a compelling story. It is notable how rarely to move round and treat, the more you have sewage safely handled, treated and recycled in renewable supplies (with desalination and other innovators can combine these capabilities. to pump so the more your power bills rise. appreciation removal. a manner appropriate to each area’s economic approaches as a last resort) and wastewaters However, when it came to sludge treatment In such a difficult climate, how can innovators and hydrographic circumstance. In other words, being treated and recovered in a manner which and disposal, the proportion of operating about what emerge? In Bluewater Bio’s case, from its core stop talking the talk and start walking the walk. maintains the integrity of the water cycle. I costs taken up by power in fact fell from 10% capabilities such as HYBACS® (wastewater believe that a comprehensive and sustainable to 6%, due to the start of a push into sludge The convergence of information technology, treatment modules, now in operation in three water and water and wastewater infrastructure can be to energy. For example, Thames Water has mobile communications, computing and countries) and FilterClear (multimedia filtration developed by 2050 for $7,210 billion to $8,510 349 wastewater treatment works, 22 of which digital manufacturing could not have started Bluewater applications) it is establishing a family of water wastewater billion or $190–$225 billion per annum. generated renewable energy in 2008–09, at a better time. The tools for a smart water and wastewater treatment offerings, and has accounting for 14% of the company’s total revolution have emerged at a time when According to the World Bank, water services attracted approximately 15% of venture capital offers humanity Bio’s treatment energy consumption. The energy generated traditionally “dumb” approaches towards water across the world are subsidised to the tune of funding raised by water companies worldwide saved Thames £15 million in 2008–09 and they management are being found wanting. $300 billion pa. This is simply unsustainable, let in the past year through combining innovation processes also are aiming for a 20% drop in greenhouse gas and why it alone affordable, especially since it is usually with entrepreneurial management. This is a brave new world quite detached from generation from 1990 levels by 2020 despite the wealthiest to benefit from this unnecessary Huxley’s dystopian vision. It requires popular having a significantly higher energy demand by deserves to drive down largesse and these subsidies encourage appreciation about what water and wastewater Smarter sewage management – then. This shows the potential offered when you profligate water use. So, it is imperative that full offers humanity and why it deserves to be rethink the way sewage is treated and sludge is energy cost cost recovery becomes the norm in developed a resource rather than a waste sustainably valued. This is about politician and be sustainably managed. economies and either full or sustainable cost It is little surprise to see the rise of interest in policy makers working towards our common and physical recovery the norm in developing economies. wastewater recovery over the past two years. Bluewater Bio’s HYBACS® illustrates the potential goal of reconciling diminishing supplies with valued. At the same time, there is a compelling body Between now and 2050, the world’s population benefits wastewater has to offer us. As part of increased demand in the context of financial footprint. of evidence showing that investing in water will rise by a further two billion with three its high BOD removal rate, its SMART system shortfalls. Never has the world of water and wastewater infrastructure makes excellent quarters of this growth taking place in urban is geared towards nutrient removal, creating a management been so challenging. Never economic sense. At the most basic level, it is areas. This means not just more sewage being post treatment sludge which is well suited for have we been so well equipped to meet those about human benefits when gaining freedom generated but a greater need to treat more of recovering these nutrients as well as ensuring challenges.

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Speakers include As we move into the future, how do we Craig Venter, Founder, Chairman and President of J. Craig Venter Institute and deal with the issue of a shrinking founder and CEO of Synthetic Genomics, Inc. Martijn Kruisweg, Lead, Global Eco- resource base? efficiency Improvement Program, AkzoNobel Katja Hansen, Senior Researcher at the Cradle to Cradle Chair, Erasmus University To answer this question, Markus Zils, Partner, McKinsey we have gathered water technologists, industrialists and visionaries who are working towards the idea of a circular economy based on Chaired by recycling and reuse. Usha Rao-Monari of the [International Finance Corporation] ROME Global water summit 2012 Brave new world Reuse: Defying the limits of growth

Role of disruptive technologies Katja Hansen: I think we need a paradigm in resource scarcity change. We need to stop apologising for what Katja Hansen we do and actually see the abundance that Katja Hansen is the Senior Researcher at The Academic Chair Cradle to Cradle for Innovation Chair: I would like to explore the idea that we have the opportunity to create in the next and Quality Rotterdam School of Management, Erasmus University. She is also a lead We need a resource scarcity will shape the global economy century as the driving force; not the scarcity. Use and human development in the same way disruptive technology to create that abundance trainer and engineering expert working with EPEA Internationale Umweltforschung on paradigm as the industrial revolution did over the last by looking at how nature does things and not implementing the Cradle to Cradle concept with partner companies, and manages the EU century. Is green growth nothing else than using up resources as we do at the moment. We supported C2C Islands project. She co-designed, constructed and scientifically tested one change. We resource constrained growth? should be using resources and then returning of the main demonstration projects for the 1992 UNCED Rio Earth Summit. She was also the Craig Venter: We need new technologies them for use by other systems, including us. scientific and project director of an EU funded project for bionutrient recycling in Brazil and need to stop because we’re faced with population growth To make this change, we need to alter the way China. She was a founding contributor to the Brazilian NGO “O Instituto Ambiental” which and limited resources, which affect everything we interact with the system. We are a part of took over the technology and built facilities across Central and South America. Some facilities apologising for we do. Old practices that worked on small it, and the mantra that we have been exposed were built in Haiti where they survived a devastating earthquake and continued purifying groups of civilisation will not work as we to in the past, that we are separated from water and recycling nutrients when other sanitation systems failed. The technology is now approach a global population of 10 billion the environment, is not true. We have lots of supported by UNEP in Haiti. what we do and people. Perhaps we can hope for economic opportunities to use things effectively, not just growth, because that seems to limit population efficiently. actually see the growth: the more successful nations are economically, the more they seem to limit their The other thing I would quickly like to mention, have observed quite unprecedented impacts populations. which is also a challenging point, is that on their balance sheet and profit lines. abundance that we don’t have an energy crisis. We have an We have to come up with disruptive intelligence crisis. Every day we have 10,000 I think there is a lot of evidence that points to we have the technologies, and we also have to come up times more energy falling on this planet than the need to reconsider how we are structured with new kinds of food. We need to solve all all of industry and humanity uses in a day, as an economy. opportunity to parts of the food=water=energy equation, as so there’s plenty of room for growth. What they all impact each other. Craig Venter: We’ve talked about conservation and change in practices. All of the calculations create in the Martijn Kruisweg: It is clear that we will need for CO2 loads include conservation and disruptive industries. But let’s not forget to focus we need is a joint effort towards using and improved efficiency, and still the Keeling Curve next century on applying proven technologies, as well. I would harnessing that energy. There are lots of ways is going to keep increasing at a steeper and like to share an example from where I work, a of harnessing energy, not only directly from steeper rate. We’re taking ancient biology specialty chemicals and coatings company. We’re the sun, but also derived from it, including out of the ground in the form of oil and coal, as the driving trying to implement efficiency improvements biomass; that’s where carbon plays a big role. So burning it and then converting it into CO2 force; not the in over 300 production plants. It is amazing how I think the solutions are out there and we need in the atmosphere. And while there are lots much improvement can be made by simply disruptive technologies to actually harness of projections, nobody really knows what’s applying what we know. For example, I have just them. going to happen, but it could cause disruptive scarcity. heard that 80% of wastewater goes back into change – climate change. So we have to have nature untreated, and we should all be ashamed Markus Zils: On the question of whether something besides conservation. Perhaps we that this still happens! So there are a lot of things we are facing the need for another industrial could shift the use of CO2 to recycle it even we could still do today. revolution, I would like to share the following more extensively (by capturing and burying it), facts: but we have to change every process we do. • In the UK, it took around 115 years for the Martijn Kruisweg first industrial revolution to double GDP Behaviour change Martijn Kruisweg leads a global Operational Eco-Efficiency (OEE) improvement programme on the basis of 9 million inhabitants. Today China takes about 12 years to double Chair: Is business as usual going to be the way for the Dutch multinational AkzoNobel. The programme aims at significantly reducing GDP on the basis of over 1 billion people. forward, or do we need to think of something the environmental footprint from its 300 production facilities. The three large focus areas This results in a huge and unprecedented very different that changes the way we look at are energy, water and waste. Before joining AkzoNobel in 2007, Martijn worked for Shell demand shock. We actually expect 3 billion our planet? International (oil & gas) and Norit X-Flow (water purification technology). After graduating in more middle class consumers to enter the Katja Hansen: Business as usual is definitely Technical Business Science in 1998 at the University of Groningen, The Netherlands, Martijn stream in the next 20 years. not the way to go. I would like to be clear started with Shell where he worked as project consultant on international oil projects in West • If you look at the commodity price of a about the abundance comment I made earlier: Africa and Bangladesh, after which he spend 4 years in Marketing and Sales for the European broad range of products over the last 10 we don’t have the abundance today. Nature Oil Products business. Driven by his interest in the water industry, he continued his career with years, you will see that we have eradicated a has it. To create it we need to change the way Norit X-Flow in global business development for water purification systems, before joining century of real price decline. we make things. We need to look at different AkzoNobel in late 2007. paradigms for producing our products, and • A number of companies in the recent past that’s what Cradle to Cradle does. 102 Brave new world // Reuse: Defying the limits of growth Reuse: Defying the limits of growth 103 ROME Global water summit 2012 Brave new world Reuse: Defying the limits of growth

Cradle to Cradle basically defines two different of things we use, such as mobile phones, the life examples already out there – it is really significant carbon nanotubes. One of the most famous Resource cycles. One cycle is made of all the things that cycle can be as short as 2 to 5 years. at scale. I think there are ample opportunities to nanotechnologists said that environmentalists interact with the biosphere that are consumed. consider solutions in that sense. are going to blame the nanotechnologists in There are 3 questions to answer: All of these things end up in the environment 10 years for taking all the carbon out of the air scarcity can be Craig Venter: If all we do is try to change and therefore should meet certain criteria, the • Could we design a system which would because it is a resource. It is a major element of people’s behaviour in conservation, we’re not least of which is that they shouldn’t be harmful; reduce material intensity? life, and we need to change our perspective and going to get very far. If we want to solve the addressed with they should actually be beneficial. really see it for its value. • Could that system be profitable for major problems, we have to look at where the significantly higher We are always looking to minimise our footprint, companies? biggest problems are, aside from the sheer but at 7, 8 or 9 billion people, the chances of numbers of people. I don’t care if we change Holistic approach • What would that look like at scale if we did minimising it are going to be small. So what the behaviour of 90% of the people on the productivity, and it at an economic level? Chair: Water is obviously increasingly we need to target is a big footprint, but make it planet. If we change the behaviour of people in interconnected with other resources. So if we beneficial for the systems around us. In a lab in our office we took a mobile governments to get new policies, we can go a don’t look at things more holistically than we’ve the knock-on phone apart. Today, 85% of mobile phones very long way. The second cycle refers to products that only done before, we won’t get the solutions. What go to landfill or are aborted, after 2 years on provide us with certain services. The materials Energy production is the biggest single point do you think? average. We discovered a lot of interesting efficiency. It’s that are contained in these products don’t get of pollution. Agriculture cannot continue to components that can be recycled and reused. Markus Zils: I think this is very high on the used up, so they can be reused if we design expand at its current rate – it is not keeping up In the end, with minor changes to the current agenda of many of our non-water clients. We Dr Markus Zils very attractive in our products in a way that allows us to do that. with population growth. So instead of trying design, you can reintroduce components into have looked at what the biggest constraints in Dr Markus Zils is a partner at That is basically the underlying paradigm of the to grow corn, create cell factories that produce the cycle; and that is a major saving in terms of manufacturing are, and one of the biggest is many business Cradle to Cradle approach. food and energy. We’re designing new kinds of McKinsey & Company and is resource intensity. water. For instance, large amounts of water are food to greatly increase health and production currently based in Munich. He is And this is not a future vision, it’s something used in industrial production. We made a calculation to see what would by orders of magnitude. Sustaining cattle a member of McKinsey’s global models and that we can do today. Cradle to Cradle has happen if we recycle equipment 2, 3, 4 or 5 for meat will be an extreme luxury; it’s not Regarding disruptive technologies, many leadership Sustainable Resource already been leveraging huge amounts of times over a 75-year period. The results are something we can keep doing. companies and institutions struggle with Productivity Practice and leads there are many money in product innovation and development astonishing. Not only are we able to maintain finding the scale of mechanism to make a and process changes. So instead of having to change everybody’s McKinsey’s Zero-Waste initiative. material intensity at the current level, but we’re technology disruptive, and that has much more behaviour on the planet, I would rather change This initiative aims to identify examples already Chair: The big question is, how do we do that? changing the run rate for good. It’s such an to do with the business model than with the the behaviour of farmers by getting them in an a comprehensive approach to How do we become part of the solution? important message because our growth can be technology itself. We are locked into our current industrial mode; changing the technology they increasing resource productivity by out there – it is culminated with a less steep incline in resource manufacturing processes, and trying to address Also, where is the connection between have available; reducing water use by 50% or avoiding leakage of materials along demand. Together with demand management the barriers in business models which have behaviour and technology, finance and 60%; and capturing the CO back from power and efficiency, this can help to drive down quite 2 created lock-in is a big part of the equation. the value chains and by designing really significant governance? How can we use technology as a plants. We’re looking at ways to use our highly a bit of the gap that we have. self-funding system-wide solutions engineered algae to not only capture the CO , Katja Hansen: I would like to answer this positive force to change behaviour? 2 that can be adopted by companies at scale. So is it still profitable? We worked with a mobile but also to make products out of it at the same question by giving you some examples. Using Martijn Kruisweg: I hope we can redefine our to implement more circular business phone OEM company to find that out, and yes, time. the Cradle to Cradle design framework, we help business models. We need to beat the short- models. Markus holds a Master’s it is profitable. There is an arbitrage opportunity companies improve their bottom line. termism of business. Can capitalism become Recycling is a key part of the story. I think that of about $2 on each of the mobile phones Degree in Management Science from part of the solution? changing a few key points, such as agriculture, One example is the Ford Rouge Motor including the collection, the processing, etc. the University of , as well as energy production, or at least capturing back Company in Michigan. Due to their past We need disruptive technologies but we also If you scale that up and look at products of a a Master’s Degree in International the CO from energy production, will most likely legacy of using up resources, the company need disruptive behaviour. Why was the iPad medium complexity and life cycle (for example 2 have the biggest impact in both the short-term had a huge contamination problem on-site. Management from the Community adopted so quickly? Because it’s fun! We hired washing machines or cars), which account for and the longer-term. Regulatory measures were forcing them to of European Management Schools a game designer to design our new sharing about 50% of the material that we consume make huge investments to clean up their act. (CEMS), H.E.C., Paris. He earned his Katja Hansen: CO is a resource. For Cradle to portal for eco-efficiency in the company, and it in Europe, similar savings can be achieved on 2 Michael Braungart and William McDonough got doctorate in operations research is a huge success. So we need to ensure things material productivity. Cradle it’s just a material like everything else. involved and showed them solutions: installing with a focus on economic modelling are fun to do as well. It is obvious that resource scarcity can be Let’s use nanotechnology as an example. the largest green roof for water treatment in in transportation and network/fleet America saved the company $35 million. Markus Zils: At a conceptual level, we live in addressed with significantly higher productivity, Nanotechnology is about building things optimisation from the University of a linear world where we take resources, make and the knock-on efficiency. It’s very attractive from the bottom up, starting with atoms and Another example is a textile company at Lake Cologne. something and dispose of it. For a large majority in many business models and there are many molecules, and a lot of carbon is used for Constance, Switzerland. The company was

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Chair: I think that all solutions fall into 3 My colleague Orianna Bretschger has spoken Dr Craig Venter buckets: finance, innovation and governance. at this conference about using microbial fuel Dr Craig Venter is Founder, Chairman and President of the J. Craig Venter Institute (JCVI), and is If you can put solution structures in those 3 cells (MFCs) to clean up any carbon substance also Founder and CEO of Synthetic Genomics Inc. He began his formal education after a tour buckets, I think we could probably solve 90% of in the waste stream, and recycling the water. We of duty as a Navy Corpsman in Vietnam from 1967 to 1968. After earning both a Bachelor’s the world’s problems. What do you think? think this could be almost instantly adopted for almost any waste stream. It’s a matter of trying Degree in Biochemistry and a PhD in Physiology and Pharmacology from the University of Markus Zils: First of all, I think governments it on scale. The idea is simple, and has been California, San Diego, he was appointed Professor at the State University of New York at Buffalo can play a hugely important role setting around for a long time, but it took some basic and the Roswell Park Cancer Institute. In 1984, he moved to the National Institutes of Health standards and creating incentives. But we’re innovation with both the microbe populations living in a world which is very different than it campus where he developed Expressed Sequence Tags (ESTs), a revolutionary new strategy and the way the electrodes are designed, and was in the first Industrial Revolution, where we for rapid gene discovery. In 1992 Dr Venter founded The Institute for Genomic Research (TIGR, Orianna came up with a new breakthrough had a very simple structure. We’re completely now part of JCVI), a not-for-profit research institute, where in 1995 he and his team decoded in electrodes that makes it scalable and interconnected, we’re living in the world of We need the genome of the first free-living organism, the bacterium Haemophilus influenzae. In 1998, economical. So I think we should recognise and Google and Facebook, and the problem is Dr Venter founded Celera Genomics to sequence the human genome using new tools and encourage innovation. not always implementation. It’s getting the to change techniques he and his team developed. This research culminated with the February 2001 right ideas out there and I think that’s where I think that one of the things to think about, publication of the human genome in the journal, Science. He and his team at Celera also entrepreneurs and people with ideas will particularly with economic driving forces and educational sequenced the fruit fly, mouse and rat genomes. Dr Venter and his team at the Venter Institute address a lot of the problems. the risk of economic collapse, is what’s driving continue to blaze new trails in genomics. the new industries. Right now, even though History has shown that we are very creative and infrastructure my organisations are relatively small, we can’t we can create unforeseeable solutions to many find enough qualified people to hire for very problems; I think a perfect storm is forming. to train people high paying jobs, and we hear this from our Everybody is aware of resource scarcity, and dyeing the textile with hazardous pigments, colleagues around the world. History has and due to strict environmental regulations, it is great that it’s being discussed here, as it’s not for last the company was required to invest in a a reality for many of the procurement officers We need to change educational infrastructure wastewater treatment facility or move their around the globe. to train people not for last decade’s jobs, but for decade’s jobs, shown that future jobs, because they could totally change whole production site; neither of which were We know that we have technology out there the economy. With an educated workforce, we an option for the company. So Braungart and that enables us to start collaborating in very we are very could change the economy quite rapidly. but for future McDonough were approached in the early different ways. There has been an increase 1990s, and they redesigned their textiles. in many types of rental, performance based jobs... with creative and By changing the product they managed to services; car rental is increasing, people are Questions from the audience eliminate the wastewater problem. Today the it’s not a matter of just taking natural gas and trading in old equipment on eBay and so on. Mohsen Mortada, Arcadis: Policies that skin friendly textiles are used on the KLM airbus. burning it, we’re using a massive amount of an educated we can create So I think there’s a lot of infrastructure in place, are made are very broad, and people and water to get that natural gas. In fact, there are together with the higher awareness now, which So I agree, water is interconnected, and we companies totally dedicated to finding new corporations behave differently. So where do workforce, we unforeseeable have adjusted a lot of production processes can give us the confidence that something we draw the line of responsibility? Do we put sources of water to feed the oil companies to is going to change. This will benefit from at companies in a holistic way. You can’t just get this gas out of the ground. So we’re using the burden on the big companies to deal with solutions to address the water problem; you need to look governmental intervention centres but I think corporate social responsibility, or do we go to could change lots of water to create energy to produce more it will rely on the private sector to drive it. The at what contributes to it – what goes into the water. It’s not the most intelligent cycle that you the individual level? How much freedom do we water and what comes out of it. analysis we have done suggests that the people give each individual to behave responsibly? the economy many problems; could define. who move fast can really create substantial Craig Venter: I think it starts with being aware Looking at agriculture, it takes a lot of oil and profit opportunities, and also in a very short- Craig Venter: Conceptually, things could be quite rapidly. I think a of what the problems are. Huge amounts of energy to make fertiliser to feed the crops. term period. done in a much simpler fashion. If there’s one water are now being consumed for cracking to single thing that governments and corporations Most of us are unaware of where the resources Craig Venter: I think the iPad is a perfect perfect storm is produce the natural gas that is in abundance. go, and I think part of the challenge is to could agree on, it’s putting a price on carbon. At the same time, a massive amount of water example, because the new technology didn’t understand where the water goes, where our If we could agree upon the value of CO2, that is used for coal recovery. I’ve heard that the come from the government, it came from some would be the ultimate way to change people’s forming. food comes from, and what we are producing innovators. At Synthetic Genomics, we don’t just UAE will be using up to 50% of their energy for as a result. behaviour. In the U.S. just the threat of that making water from desalination, so a gallon of strive for good science. If it is not economically caused a lot of the major oil companies to start water is far more valuable than a gallon of gas The bottom line is that we can break the viable as well, then it solves nothing. Things looking at alternative energy sources, if nothing or oil right now in many parts of the world. problems down to a few fundamentals that have to be scientifically, environmentally, else just to offset a potential carbon tax. have to be solved and they’re all interlinked. economically and socially viable. Understanding these processes is important: The concern I have, and this happened in the

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1970s during the oil crisis, is that when a lot fruit and vegetables to provide a continuous of alternative energy companies developed income for two families, which changed the and invested large amounts of money, all of whole outlook in that community. I think we’re the companies went out of business when looking to centralised systems for a lot of our the oil price dropped. So if we are successful answers, and I think in a lot of the world, we in coming up with new sources of energy by actually need to change the models to a more

recycling CO2, for example, and we start to decentralised approach. create alternative sources, we will just lower Setting goals is the underlying point here – by the cost and the price of oil and gas. However, recognising what ambitions we have, we can if there is a price or a cost of CO that escalates 2 move towards them, rather than reacting as we over time, that’s a way to change behaviour and do to a lot of the crises that we’re facing. Frank drive innovation to recycle the CO , instead of 2 Rijsberman’s goal to reinvent the toilet is a true just continually producing it. ambition. So was John F. Kennedy’s mission to Jordi Bruno, Amphos 21: I would like to the moon in the early 1960s – no one knew challenge some of the statements made by how to achieve it, but there was true leadership Katja Hansen and Markus Zils. The laws of and the drive towards major innovations within thermodynamics limit some of the things that a decade. So I think leadership is something that you can do in terms of growth. There is a limit to I want to underline. the number of cycles that you can do, otherwise Chair: This solution sounds great for a few you will need to introduce more energy to families – but how do we scale it? the system. And this is something we have to prevent, because I fully agree that energy is a Katja Hansen: We built pilot facilities for tens scarce resource. of thousands of people. It was funded by the European Community, and we showed them Katja Hansen: The entropy argument is that it worked technically, scientifically and definitely a scientific and well-made one. economically. The next challenge was how to However, there is a lot of room for improvement scale it. The European Community asked us before we reach the limits of entropy. what we could do next, and our response was Markus Zils: I think the second law of that we needed infrastructure financing. The thermodynamics is a problem of dispersion. I European Community said that they could think we have the first conversion pretty much provide another grant for scientific research, under control, at least to sufficient standards. but we would need to talk to the World Bank or If you look at the business model that you run, other financial corporations for the financing of if you achieve 60–70% today, that’s typically infrastructure. completely sufficient to actually change the Question: What I would like to see is a direct run-rate of material consumption. I think that’s connection between the innovators that are the good news against the demand shock that providing solutions that work, and the financing we’re facing. institutions. By getting these people in the same Question: How far do you think we can go in room, and seeing how solutions have already making the water cycle and the management of been scaled up, we could ask: how do we the water cycle energy neutral? accelerate the growth? Katja Hansen: I will answer this question Markus Zils: I would like to comment on by providing an example of the work we’ve that, because if you look at the financial sector done which illustrates the beneficial footprint I from both a linear perspective and a circular mentioned earlier. perspective, there is quite a profound change. The linear perspective is take, make, dispose; We built a water treatment facility outside of it’s very much uncollateral lending and that has Rio de Janeiro which we called bio-nutrient created a lot of pressure for many of the banks. recycling. The focus was to grow products with Business systems with circularity can now be nutrients contained in that water and have created, where you maintain assets in cycles. clean water as a by-product. We produced This actually turns into collateral lending and is energy through biogas digestion, and we much more secure. produced sustainable amounts of food, fish, 108 Brave new world // Reuse: Defying the limits of growth Reuse: Defying the limits of growth 109 Securing the Middle East’s water future

A wind of change has blown across the Middle East since January 2011. Some countries in the region have new governments in 2012, while others are making quieter changes.

In this session, we ask a panel of senior officials from the Middle East how the management of water resources will develop and change in the years to come.

Speakers include HE Mohammed Al Mahrouqi, Chairman, Public Authority for Electricity and Water, Oman Dr Rafiq Husseini, Deputy Secretary General, Union for the Mediterranean Chaired by Shannon McCarthy Hon. Miguel Moratinos, Senior Diplomatic Advisor, Qatar of The Middle East Desalination National Food Security Program Research Center Dr Latif Rashid, Senior Advisor to the President of Iraq [ ] ROME Global water summit 2012 Brave new world Securing the Middle East’s water future

HE Mohammed Al Mahrouqi Oman’s Public Authority for Electricity and Water

The Public Authority for Electricity and Water consumption per capita and therefore impact (PAEW) was established in 2007 and it has two on the subsidy – unless the government makes main responsibilities – electricity and water. the decision to restructure the tariff, but this would be a very difficult decision to make. For electricity, we are responsible only for policy, not the operations or the regulation. For water, Chair: How does PAEW plan to deliver water to Demand is however, we are vertically integrated: we are remote villages in Oman? self-regulated, we set policy and we manage Our target to reach 90% of the population by the sector. It is complex. growing at 2035 will require $8 billion of investment in Chair: What scope is there for demand transmission and distribution. We have a small 10%/yr and this management in Oman, and do you think water population scattered over a large land area, so subsidies will grow or shrink? the infrastructure will be costly. puts a lot of The scope for demand management is As well as the distribution network, we’ll need substantial across the region, not just in Oman. In to build our desalination capacity. Our policy pressure on our Oman, 4 or 5 years ago, water consumption was is to fund such works through the private 140 l/capita. Today, it’s 175 l/capita. Demand is sector. Until now, we have managed to do so resources... we growing at 10%/yr and this puts a lot of pressure successfully by using the independent water on our resources. Since we are highly dependent and power project (IWPP) model, whereby the are considering on desalination, you can imagine that this has private sector finances, owns and operates the huge cost implications, so we are considering plant and sells the output to the offtaker (the various strategies to mitigate over-consumption. government). We have three projects in the HE Mohammed Al Mahrouqi various Our focus, however, is to improve efficiency: our pipeline using this model: one was tendered non-revenue water (NRW) stands at about 40% in February 2012; bids are due in July, and HE Mohammed Bin Abdullah Al Mahrouqi is the strategies to and we would like to reduce it. hopefully we’ll be closing the deal before the Chairman of the Public Authority for Electricity and end of the year for the plant to be in operation Water in Oman. Before being appointed at the Authority, In terms of subsidies, demand is growing fast in 2014. The other two will shortly come up for mitigate over- – and is likely to continue for the foreseeable he held several positions which included the post tender: each will have a capacity of 180,000– future – so the subsidy will eventually increase of Chief Executive Officer of the Electricity Holding 220,000 m3/d and we would like them to be consumption. because we’re going to expand our services. Company and Chief Executive Officer of the Oman ready by 2016 and 2018 respectively. Currently we are serving less than 50% of our Power and Water Procurement Company. Prior to that, potential customers, and we would like to For rural areas, we’re using small desalination he worked in various departments of the Ministry of achieve 90% by 2035. This would improve living plants wherever possible. Otherwise we National Economy. During his professional career, he standards, but it would also result in higher transport the water by pipe or tankers. participated in a number of economic field projects including restructuring, regulation and privatisation of the electricity and related water sector. He also represents the government in a number of Companies’ Boards of Our focus, however, is to improve efficiency: our NRW Directors. He holds a Master’s Degree in International Business Administration, which he obtained from the stands at about 40% and we would like to reduce it. University of Bristol in the United Kingdom in 1998. He also graduated from the Economics College of King Saud University, Kingdom of Saudi Arabia.

112 Brave new world // Securing the Middle East’s water future HE Mohammed Al Mahrouqi // Oman’s Public Authority for Electricity and Water 113 ROME Global water summit 2012 Brave new world Securing the Middle East’s water future

Dr Rafiq Husseini The Union for the Mediterranean

The Union for the Mediterranean (UFM) every country could put just 10% of the money brings 43 countries around the Mediterranean they pledged towards the desalination project, We keep political together. We push for security, peace and then we could be talking business. prosperity through regional projects. I am Arab member states have agreed to commit pushing the water and environment agenda: differences in 10% of their pledge to this endeavour, and this is the technical side of UFM. The political the French government has offered to provide side will be much more difficult to achieve. our hearts and a further €10 million. We’re working hard to Chair: Many countries don’t treat their sewage secure the rest of the funding. focus on fighting before disposing of it into the sea. How can UFM A number of development organisations are address this issue? supporting us: the Islamic Development Bank; the public At UFM, we keep political differences in our the European Investment Bank (EIB), who is hearts and focus on fighting the public enemy, updating the 2003 feasibility study; the European enemy, that is, that is, sewage in the Mediterranean and Commission, who is developing a $10 million water scarcity. Our projects address technical desalination project in Gaza and is very challenges, and avoid political issues as much supportive of the larger desalination project; and sewage in the as possible, because they are complicated and the World Bank is also very interested. Everybody Dr Rafiq Husseini take a long time to unravel. agrees that this is a national project with a Mediterranean regional impact, and that is how we approach Dr Rafiq Husseini is Deputy Secretary General at Chair: There is a new desalination project in our projects: Gaza will benefit, but so will the the Union for the Mediterranean. He was born in Gaza: how is UFM going to get the project off and water scarcity. region through improved water security. Jerusalem and educated in Amman, Alexandria and the ground? Beirut, where he obtained his BSC Degree in Biology/ This is a very large project, and is much needed Audience response: How long until the desalination plant in Gaza becomes a reality? Chemistry from the American University of Beirut in because 1.6 million people don’t have access 1973. He later obtained a PhD in Medicinal Chemistry to drinking water in Gaza. The aquifer has been and a Masters in Health Management in the UK. over-abstracted, the water is brackish and high 3 years: 9.2% He worked as a Research Fellow in the Medical levels of nitrates are leading to kidney damage. Microbiology Department at the University of The desalination project was put forward by the (1979–84) and co-authored around Palestinian National Authority, and it received 20 scientific publications. He then co-founded the UFM “label”, meaning that it has the political 5 years: 19.3% backing of all 43 member countries. This is the British Charity Medical Aid for Palestinians and How long will it take the first project to receive the UFM label, as became its Director General (1984–86 and 1989–94). for the desalination member states recognised the humanitarian 10 years: 49.5% In the immediate aftermath of the Oslo agreement plant in Gaza to importance of the work. become a reality? signed by the Government of Israel and the Palestine Liberation Organization (PLO) in 1993, Husseini Along with a desalination plant, the $450 million became the Director General of the Palestine Council project includes a water carrier from the north to the south of Gaza, which accounts for a third of Health in the West Bank, the forerunner of the of the budget. At a conference in Sharm-el- 100 years: 22.0% Palestinian Minister of Health, and helped author the Sheikh in , the world promised $4.4 billion first Palestinian National Health Plan in 1994. for Gaza reconstruction. We thought that if Source: GWI

114 Brave new world // Securing the Middle East’s water future Dr Rafiq Husseini // The Union for the Mediterranean 115 ROME Global water summit 2012 Brave new world Securing the Middle East’s water future

Hon. Miguel Moratinos Qatar National Food Security Programme

I am working on the creation of the Global and renewable energy so that we can all In NATO, if Dry Land Alliance (GDLA). Think of it this way: produce better results. Finally, we’d like to put in It’s been said in 1947, when the U.S. was concerned about place a crisis prevention mechanism: in NATO, if military security, they created NATO (North one member state is attacked, Article 5 says that one member Atlantic Treaty Alliance). Similarly, we want to all other member states will come and help the that you cannot create a food security alliance to signal to the country in danger. In GDLA, we want the same state is attacked, international community the importance of this solidarity to apply when countries face a food mix politics and Article 5 says issue. crisis. water, but this Chair: Qatar faces limited land and water Chair: It’s been said that Qatar is investing resources, and that has an impact on in Africa and South America. Is this for food that all other agricultural growth. Qatar is addressing these security? is very difficult: concerns using cutting-edge technology to This is the general policy of some countries, member states address food security sustainability in dry land unless you not just Qatar. They are looking for land in countries. order to guarantee food production, but this is will come and Could you tell us more about your approach and not the answer. It is one initiative before they reduce water how it can be transferred to countries with fewer adopt a more global approach. The old way of help the country resources? dealing with water scarcity must be reviewed. as a factor We should address the political, technical, We live in a world where the real issues are environmental and sustainability issues in the in danger. security, water, food and energy. They should of political Middle East. be the main concern of international politics – I am glad they are discussed in forums like this It’s been said that you cannot mix politics and stability, water in Rome, but they should also be deployed water, but this is very difficult: unless you reduce into concrete initiatives. We all know that in water as a factor of political stability, water will will have the In GDLA, we an uncertain world, you cannot discuss these have the potential to trigger crises and conflicts. issues separately: you must combine them We must present a central platform to have potential to to have any hope of making a lasting and peace and stability in the Middle East, and want the same sustainable change and that is what Qatar is water must be part of it. It’s not about building trigger crises doing. desalination capacity or buying land in Sudan or solidarity to Latin America. To do so, you must bring together countries and conflicts. apply when with an interest in responding jointly to The Middle East is changing rapidly. We must Hon. Miguel Moratinos challenges. First, we would like to develop a address what has happened and what will Hon. Miguel Moratinos is a Spanish diplomat. He served as Minister of Foreign Affairs in coordinated food programme so that countries happen. Egypt and Israel had an understanding the government of José Luis Rodríguez Zapatero from 2004 to 2010. Between 1996 and countries face a don’t have to resort to extreme measures such about energy, but now the gas supply to Israel 2003, he worked as the EU Special Representative for the Middle East Peace Process. He is as embargoes. Second, we want to pool and has been cut off. Will the same happen to water food crisis. expand our technological expertise in water as a result of regime change? now a Special Advisor for the Qatar National Food Security Program.

116 Brave new world // Securing the Middle East’s water future Hon. Miguel Moratinos // Qatar National Food Security Programme 117 ROME Global water summit 2012 Brave new world Securing the Middle East’s water future

Dr Latif Rashid Senior Advisor to the Iraqi President

I’m sure most of you know that Iraq is in a to address this. I am also very proud of the fact region that faces serious water issues. Iraq has that I played a part in rehabilitating wetlands in Our budget has suffered political and military conflict, and that the south of the country: these were completely has severely impacted our drinking water and drained over the years and we have managed substantially sanitation infrastructure. to reinstate 60–70% of the original 25,000 km². We are a member of the Council of Water Our budget has substantially increased from increased from Ministers of the League of Arab States, which $9 billion in 2003 to $120 billion this year, so has been established to take water issues into we have the funds to implement reform. What $9 billion in 2003 consideration at the regional level. we lack are experts, consultants and private companies willing to invest. The security Chair: Iraq faces serious water issues. How is the situation has greatly improved and although to $120 billion government handling reforms and addressing our regulation is outdated, it is still solid: the management – and lack – of water investors won’t lose their money but they need this year, so we resources? to be patient as things take time in Iraq. With less than 1% of the world’s water Despite the lack of rainfall and investment, have the funds to resources, the Middle East is facing serious and the legacy of the conflict, we are hopeful challenges. The mix of water and politics in the that the future is brighter. We want to move implement reform. Middle East is inevitable, as most of the water forwards, and the more we’re involved in resources are transboundary: Iraq shares with improving water management, the better for Iran, Turkey and Syria; Syria shares with Lebanon, everybody. Turkey and Jordan; and Jordan shares with many countries. Until riparian countries come to an understanding, water issues cannot be Audience response: What is your biggest concern about investing in Iraq? What we lack are solved. experts, consultants Before the conflict, Iraq had technical Lack of pro tability: 3.5% knowledge, serious projects in the pipeline, storage capacity, irrigation systems and good Bureaucracy: 12.3% Dr Latif Rashid and private human resources. However, with the conflict Dr Latif Rashid is the Senior Advisor to the President of Iraq, where he oversees many and sanctions, many of these assets have of the new economic and social developments of the country, while establishing ways companies willing deteriorated. by which Iraq can advance in the fields of services, development and economics. Dr The new authorities are well aware of these What is your Corruption: 14.9% Rashid was the Minister of Water Resources in Iraq after the fall of Saddam Hussein’s to invest. problems. We have started to negotiate with biggest concern government in 2003. In this role, Dr Rashid oversaw major changes within the Ministry, neighbouring countries on transboundary about investing focusing increasingly on technical and academic approaches rather than the previous water resources, and although we haven’t come in Iraq? government’s focus on political and military approaches. Dr Rashid has served as board to a conclusion yet, I’m hopeful that we will. leader of the Iraqi National Congress in London and has also held the role of the Patriotic We have to improve our overall management of Union of Kurdistan (PUK)’s representative to the UK. He completed his higher education water, whether it is drinking water, wastewater Security: 69.3% in the United Kingdom and completed a Degree in Civil Engineering and his PhD in or irrigation. We still lack modern irrigation Hydraulic Engineering. techniques, but we have allocated large funds through ministries and agricultural initiatives Source: GWI

118 Brave new world // Securing the Middle East’s water future Dr Latif Rashid // Senior Advisor to the Iraqi President 119 ROME Global water summit 2012 Brave new world Securing the Middle East’s water future

Questions from the audience

Question: PAEW in Oman is doing everything close. We have shortlisted seven companies for Karkadis, that contribute 20 billion m3 to the Question: We haven’t talked much about water in the water sector; don’t you think you could the standalone desalination plant, and there flow of the Shatt-al-Arab River: they have been management and water reuse. We can talk have an independent regulator? Also you rely on has not been any suggestion that they will face diverted and the river is now brackish. We are about demand management, but we need to private sector financing for your infrastructure, difficulties reaching financial close. taking actions but it’s not enough: there should look at how water is actually managed. so have you required government help during be international regulation. Question: What are the most important legal Al Mahrouqi: I agree that focus has been on the financial crisis? and administrative considerations for the GDLA? Dr Rafiq Husseini: The water that flows to supply, merely because we’re still trying to catch HE Mohammed Al Mahrouqi: I agree that Arab countries often doesn’t come from Arab up with demand: average growth is 10%/yr. I Hon. Miguel Moratinos: We have three we need to restructure the water sector. countries, so at UFM, we’ve said that it is not think we all agree, however, that water must be criteria for countries willing to join: they must Segregating responsibilities will improve our enough for the Arabs to work on security on dealt with in a more integrated way. be 70% arid land, possess an average income governance. The authority was set up in 2007 so their own. We have to find a solution within a that can cover the running costs of a small Question: I think it is imperative that an we are still in a transitional period. We’re aiming regional framework agreement or under UN secretariat; and they must be a food importer. organisation impresses on the UN how urgent to unbundle it. auspices. Otherwise we’ll wage wars over water. Then it’s all about political commitment: it’s it is to take action on water. Otherwise, 10 years As for the second question, we have put open to everybody, but you must be willing to Question: Can water and food security be at from now, there will be full scale wars. together four projects in the last three years and respond to crises. the same level from a security point of view? Moratinos: You’re right. Water is considered we have not required government intervention. Question: I am surprised that no-one Moratinos: I think you must integrate these a strategic asset, yet it doesn’t have a UN Securing financing was not an issue: three of mentioned the Arab Water Security Strategy issues or we won’t solve anything. You can be organisation. An organisation for it doesn’t exist our projects were electricity and large-scale that was adopted by the Water Ministers of the best engineer but if your design runs into because nobody wants to let others discuss power plants and they all achieved financial the League of Arab States in June 2011. It was insecurity, you are lost. This is why we have a big their water resources. endorsed at the World Water Forum in Marseille crisis in international relations, because we are Audience response: What is the biggest obstacle to achieving water sustainability? in March and provides answers to all questions treating subjects in isolation. Audience response: Where is the biggest need for investment? about water issues. Misplaced attempts to establish national food security: 1.0% Question: The audience vote shows that full Dr Latif Rashid: Although I mentioned cost recovery is a key issue. In the panel’s view, Water supply: 14.4% The price of the required the Arab Council, I didn’t go into detail. It how likely is full-cost recovery in the long-term? solutions: 13.9% has policies related to social economics and Husseini: At UFM, we have countries that, on development; water sharing and politics; and one extreme, practice full-cost recovery. They capacity building at the institutional level. consider water like oil or electricity, a service I was part of the team that drafted it and it What has been the that you must pay for. On the other extreme, is quite important. The problem is that the Where is the biggest biggest obstacle to you have countries who think that water is a international community is not doing enough need for investment? Poor management achieving water The inability of politicians free commodity, like air. You don’t pay for air, so Water / wastewater about transboundary water issues. There are of water utilities: 30.7% sustainability? to accept cost recovery why should you pay for water? networks: 23.4% tari s: 54.5% conventions on shared water resources that Wastewater treatment / were approved many years ago and that still My belief is that water falls somewhere in reuse: 62.2% haven’t been signed. between. It should not be treated like electricity or air, but instead like education: a basic human In Iraq, 40% of the flow of the Tigris River comes right, which everyone should be able to access, from Iran, as well as two large rivers, Karun and Source: GWI but that should be paid for. Source: GWI The international community is not doing enough about transboundary water issues. We have to find a solution within a regional framework agreement or under UN auspices. Otherwise we’ll wage wars over water. 120 Brave new world // Securing the Middle East’s water future Questions from the audience 121 The future of desalination

1) The future of certainly be reverse osmosis (RO). We’ve seen seawater desalination an increase in the size and number of mega- plants; these are 100,000 m3/d plants or larger, Chair: What is the future of seawater and I think we’ll see that continue. In terms of desalination? procurement models, the build-own-operate Corrado Sommariva: The future can be as (BOO), build-operate-transfer (BOT), and service 10 questions... good as our dreams, and to make our dreams models such as engineering, procurement come true, we need innovation. But this is not and construction (EPC) and operation & an industry that has been proactive in bringing maintenance (O&M) will continue to dominate innovation from the pilot stage to the actual the market. final product, so we need to work on this. I believe at the same time we’ll see more Michel Canet: In my opinion, the future is modular package-type plants. I think one of the relatively bright. Technologies are developing reasons that GE won a Global Water Award this and improving. Currently, many places in the year for Desalination Company of the Year was Middle East have multi-stage flash distillation in part because of their mobile fleet. (MSF) plants that have more or less come to an My final point is that I think we’ll see advanced end, and need to be either changed by new materials making a big impact on the industry, processes or refurbished. This, accompanied with less steel and more composite-type on the future of desalination with the fact that surplus energy is available 10 materials – even in the high pressure plants. in many places, will allow us to develop seawater significantly. I also believe that hybrid combinations will be used more and more, Neil Palmer particularly in the Middle East. We brought together a panel of desalination Neil Palmer has Degrees in Civil and Neil Palmer: Over the last 7 years Australia has Public Health Engineering. His career invested $10 billion in desalination. This was spans 35 years in the Australian water experts to discuss the great questions surrounding brought on by a crisis: we experienced 13 years industry, 20 years in Government of drought and some of the cities nearly ran and 15 years in the private sector. out of water. Desalination plants were therefore the future of desalination. His professional experience includes authorised and built. Then in Eastern Australia, the South Australian Engineering rain and flooding caused many people to ask, “Why did we build the desalination plants?” and Water Supply Department, the Fiji Public Works Department, The reason, I think, is important, because Chief Engineer with United Utilities desalination is affordable, climate resilient, and Speakers include Australia and General Manager can be tailored for growth. Where is the water Dr Corrado Sommariva, Managing Director of ILF Consulting going to come from if the population of Sydney Technical Services with Osmoflo, Engineers, Middle East and President of the IDA increases by 50% over the next 30 years? From the largest Australian desalination company. Neil is currently the CEO Michel Canet, Executive Vice-President, Veolia Water Solutions seawater desalination. So, from our experience, I of the Australian National Centre of and Technologies believe it has a very good future. Excellence in Desalination, which Lance Johnson: In my opinion, there’s a strong Neil Palmer, CEO, National Centre of Excellence in Desalination, future for seawater desalination. If you consider administers $20 million of Australian Australia that 75% of the world is covered in water, 98.5% Government research funding. Neil Lance Johnson, Commercial Director, Dow Water and Process of that is seawater and less than 2% is fresh is a Vice President of the Asia Pacific Solutions water. An ever increasing population growth, Desalination Association, a Director industrialisation and urbanisation are putting of the International Desalination Dr Richard Stover, Executive Vice-President, Desalitech more stresses on our finite water supply. You Association and a member of the can always conserve, and turn to water reuse, Institution of Engineers Australia. He but there will still be a strong need for seawater is also a Life Member of the Australian Chaired by Miguel Angel Sanz desalination. Water Association and National Co- of Degrémont Rick Stover: I’m going to take a technical angle convener of the AWA’s Membranes on this. I think the technology base for the vast and Desalination Specialist Network. [ ] majority of desalination around the world will The future of desalination 123 ROME Global water summit 2012 Brave new world The future of desalination

Michel Canet: Today there are a lot of Neil Palmer: We are running a couple of Michel Canet competitors in this market, and one thing that projects, but the jury’s out – I’m a little sceptical Born in France, Michel Canet is a Civil Engineer from Ecole Speciale des Travaux Publics in we have to be cautious about is being sure that about the economics of it. I think we can make competition is not going to damage the image it work, although there’s a long way to go. FO Paris. In 1975, Michel earned a Masters in Construction and Environment from the Centre of RO desalination. People are taking more and is really osmosis, the engine that gets water to des Hautes Etudes de la Construction. After a few years as a Design Engineer in the French more risks in order to be competitive, and we all of the trees and plants in the world. We’re Subsidiary of the Bouygues Group, Michel was expatriated to many countries, including may reach a stage where we put the process touching on biomimetics by looking at what Africa, the Middle East and , spending more than 15 years out of France. itself at risk, just to be more competitive. You nature does, learning from it, and doing it He joined Veolia Water Group 9 years ago and he is presently Executive Vice-President of may know that some RO plants have been better. I think it’s certainly worth looking at, but Major Projects Groups within Veolia Water Solutions & Technologies, a subsidiary of Veolia stopped for a few days (and in some cases at this stage an RO plant is probably cheaper. even weeks) because of the effects of red tide, Water. Michel is also an IDA Director and additionally acts as Councillor of Foreign Trade for Rick Stover: There’s certainly a tremendous and this is something to worry about. We just France. As a member of the IDA, he has served and co-chaired a session in the last three amount of interest in FO, but the question of hope that customers will take such risks into whether it will displace RO is not relevant to World Congresses. consideration. the people that are really working on it. I think 4) The future of forward osmosis the technology will be relevant in certain niche applications where RO can’t be used, and where 2) Shift from seawater to Chair: Over the last 5 years, we have talked a lot perhaps pressure damages the media that non-seawater desalination about forward osmosis (FO). How do you view it? you’re treating. FO can be a real benefit in those Chair: If we can shift from seawater to non- Michel Canet: I have read various articles on cases. Today there seawater desalination, what is your vision for the subject, and there seems to be a lot of Chair: What does the audience think? the future? controversy. On the one hand, forward osmosis (FO) seems to be very attractive, at least for Delegate: I don’t think FO should be looked are a lot of Neil Palmer: Non-seawater desalination is the economy in terms of saving power. On the at as a replacement for RO; instead, I see the used widely in Australia, particularly because other hand, people say there is no future in it future of FO as augmenting RO’s already strong we have such a large area of desert. In terms competitors in because of other complexities. position. of research, we’re looking at using renewable the RO market, energy sources such as solar or geothermal to power desalination. I’ve just come from the Netherlands, where I saw a new machine called non-seawater applications? Dr Richard Stover and one thing Dr Richard L. Stover is the Executive Vice President a rainmaker. It’s a windmill that operates an Rick Stover: Energy is always a concern, but ammonia-based refrigeration system which high recovery is more of a concern. Low capital at Desalitech. His current work aims to simplify and that we have takes water out of the air. So there’s a lot of cost is key, together with flexibility and reliability. improve water treatment with a next-generation thinking going on, and lots of potential for reverse osmosis process. Behind him, he has twenty- to be cautious remote areas in terms of water security. 3) Reverse osmosis as the five years of professional experience, specialising in Chair: Do you think that non-seawater thermal dominant desal technology water technologies. Dr Stover previously served as about is being desalination has a good future? Chair: Can anything displace RO as the Chief Technical Officer for Energy Recovery, Inc. where Rick Stover: I think there’s a tendency to say dominant desalination technology? he led the development and launch of energy recovery sure that devices and pumps for seawater reverse osmosis. He it’s either seawater or non-seawater. But the Rick Stover: I don’t think so. RO is going to also served as Vice President of Engineering for Oasys competition is fact is that non-seawater has a wildly diverse be extremely relevant. Due to the fact that range of applications, water qualities and water the technology is modular and flexible, it has Water where he developed forward osmosis processes treatment objectives. The projections are that been proven and is reliable, and the energy for desalination, water reuse and osmotic power. not going to the industry will need three times the amount consumption is lower than thermal, I think it is Dr Stover earned a Doctorate Degree in Chemical of highly purified water than domestic supply very tough to compete with RO. Engineering at the University of California at Berkeley and wastewater treatment combined, and a damage the and a Bachelor Degree in Chemical Engineering at the vast number of technologies can serve that. Neil Palmer: I agree. I think RO will probably be University of Texas. He has been granted numerous image of RO One of the challenges for the industry serving dominant for the next 20 years. this market is how to deal with the broad range patents for desalination methods and devices. Dr Lance Johnson: I don’t think we will see a new, Stover was co-recipient of the European Desalination of water qualities. Modular-type solutions can viable technology in the next 10 years. Although desalination. Society’s 2006 Sidney Loeb award for outstanding be applied in a number of applications, so I different technologies have been discussed at think there are opportunities here. this conference, I think the only thing that can innovation. He currently serves on the board of the International Desalination Association. Chair: What about the recovery of non- displace RO is rain but RO will continue to be a seawater, and the future of energy recovery in dependable source of fresh water. 124 Brave new world // The future of desalination The future of desalination 125 ROME Global water summit 2012 Brave new world The future of desalination

Leon Awerbuch, Leading Edge important thing to mention. As the discharge so much energy everywhere else? CO2 emissions in Australia due to coal power Technologies: I would like to make a case for of municipal wastewater increases, the sea will plants. People make a connection between Lance Johnson: Membranes are one of the thermal processes for the future. Membranes become richer in nutrients. This will cause more a new desalination plant and its source of key factors to reach that target, along with have limitations simply because of salinity, but biofouling problems. energy which puts an additional burden on the intelligent recovery devices. Dow has always In Australia if you look at the future from an energy point environment. If you combine a desalination invested in lower energy membranes with of view, everybody is looking at solar energy. plant with a wind farm and demonstrate a higher rejection, and we have some projects Solar energy is a natural coupling to thermal 6) Red tide low carbon footprint, then it becomes more most houses have that are still in development that will bring us processes. Low temperature distillation such as Leon Awerbuch: To what extent can dissolved appealing to the public. closer to the 1.5 kWh/m³ benchmark. I have an multi-effect distillation (MED) will be in future air flotation solve the red tide problem? reverse-cycle example that we did as part of the Affordable However, connecting a wind farm or solar probably one of the driving forces to develop Neil Palmer: I’ve seen desalination plants Desalination Collaboration (ADC). Our goal was power farm to a desalination plant is still not the technology. air conditioners, with effective dissolved air flotation. They say 1.75 kWh/m³, and I think we met it at around feasible as the problem of the storage of Delegate: The future of large-scale seawater that they can continue operating through an 1.7 kWh/m³. Conditions were on our side energy is not completely solved. So, regarding desalination is RO. Thermal desalination will algal bloom, but what we don’t have is much though (Pacific seawater at 38,000 ppm and low the current potential of renewable energy which run at always be a part of the market, but I think it’ll be data on this – so there’s still some work to do flux, low recovery). We also need to take into in desalination, there are still issues to be a shrinking part of it. FO is the least expensive to understand it. We understand the red tides account the cost of the energy. In the U.S. it is addressed. about 8 kW. If way to do it, and in many cases, RO will be when they occur, and we don’t experience about 5–8 cents/kWh. I think in Trinidad it’s only Neil Palmer: Australian plants are all offset augmented by FO. problems because it closes the plant down. It’s around 2 cents/kWh, while in Japan it’s about 20 by wind power, which is quite a significant all the water a big problem worldwide, but from what I can cents/kWh so there are different drivers around thing when you’re articulating the case for 5) The problem of biofouling see, dissolved air flotation is effective. the world requiring different solutions. desalination. For example, in Port Augusta, for your house Chair: How much does biofouling cost the Chair: Energy is obviously becoming an South Australia, a group called Sundrop Farms industry? 7) Energy costs increasingly important cost. I agree with your has built a greenhouse. They take seawater and came from a Michel Canet: I think biofouling has cost the Chair: We agree that biofouling is a problem, point, because the energy consumption depends sunshine, and hydroponically grow tomatoes, desalination industry a lot, and there are some but the most important cost in desalination on the salinity of the water. The targets will be capsicums and cucumbers which are sold desalination very clear examples. For instance, in 2008 a is the energy cost. Do you think a target of different for standard pacific seawater at 35,000 commercially in Adelaide. They’re about to number of plants in the Middle East stopped 1.5 kWh/m3 is realistic? ppm and water in the Gulf at 43,000 ppm. invest $30 million to make it eight times as big, When we discuss a target of 1.5 kWh/m3, we are which will open 55 new work places. plant, it would working due to problems with the membranes. Michel Canet: First we need to clarify the talking about a standard seawater salinity of Pretreatment is very important, and the benchmark: is the target just for the RO part of They have decided to use just renewable around 33,000–36,000 ppm. be equivalent to cleaning of membranes is also developing. So I the plant, or the whole plant? The RO industry resources for intensive horticulture, which they think that the cost of biofouling is decreasing. is quite specific when they speak about the Rick Stover: Cost is certainly a topic of great think is about 15% cheaper than a conventional running the home Neil Palmer: We’ve got a few projects that are ratio, because it depends on the salinity and interest, especially in seawater desalination. greenhouse in a normal area which is supplied looking at biofouling. I remember Professor temperature. I’ve seen numbers showing that the operating by groundwater or mains water. So there cost for a seawater desalination plant is around are a few exciting projects which are being air conditioner Harvey Winters, a former IDA Director and We are performing well in many plants. The 3 times the capital cost of construction, over developed using renewable resources in a Professor who specialises in RO, said that if you overall performance of our plant in Sydney the life of the plant. So cost of ownership different way. In Australia I think we’ve got lots system for 15 leave the bugs alone, they’ll leave you alone. including the pumping of the product to is what everyone’s looking at when they’re of land and sunshine, so we ought to be able to But if you kill or destroy them, they exude a the pipeline is 3 kWh/m3, which is quite an making technology and investment decisions make it work. substance that coats the membranes, which is achievement. Siemens have held some tests in minutes. Why are into plants like this. We’ve been using the core Lance Johnson really hard to get off. Singapore, where they seemed to reach around Rick Stover: There are some fantastic new RO process, and the kWh/m3 in exactly these Lance Johnson is an IDA Director 1.6–1.8 kWh/m3, so there is a reason to believe technologies, such as direct solar technologies. we worried about There are a lot of things that can be done terms as our goal in developing energy saving that this target will be achieved one day. Humidification/dehumidification won the best and the Commercial Director of to prevent the problem of biofouling from and energy reduction technologies. I think it’s student paper award at the 2011 IDA World desalination Dow Water & Process Solutions, happening. Managing biofouling under Neil Palmer: I think it’s possible to reach that relevant to talk about 1.5 kWh/m3. Congress in Perth. In terms of the development responsible for marketing, sales and standards means that you can take remediate target, but I would not worry that much about of RO, I think there is an opportunity to make technical services in the Americas action, and understanding the membranes, the the energy cost of desalination. In Australia 8) The role of renewable energy when we waste smaller, more robust and more flexible systems and in Japan. Dow Water is the science and the microbiology of biofouling is most houses have reverse-cycle air conditioners, in desalination also important. If you can prevent biofouling, that will move us closer to directly coupling the market leader in ion exchange and which run at about 8 kW. If all the water for so much energy then you’re a long way ahead, because the Chair: What is the role of renewable energy in desalination unit with the energy source, be it membrane technology. Lance has your house came from a desalination plant, it alternative is to try and clean the membranes, desalination? wind, solar, waves or geothermal. more than 30 years experience in would be equivalent to running the home air everywhere else? and that’s a big problem. conditioner system for 15 minutes. So why are Michel Canet: Renewable energy can assist Lance Johnson: I don’t think renewable energy the water separation industry. Corrado Sommariva: There is another we worried about desalination when we waste the image of desalination. For instance, is really a desalination issue, but an issue in energy production is the largest source of

126 Brave new world // The future of desalination The future of desalination 127 ROME Global water summit 2012 Brave new world The future of desalination

general. There is an ever increasing need to hair drying. The amount of energy used to Chair: Do you think that we will increase this have renewable energy, regardless of what it is desalinate all the water my family uses in a day part of the market in our portfolio? used for. is the same energy as my three daughters use Michel Canet: We are currently looking at to dry their hair in the morning. Corrado Sommariva: We need to create opportunities in the Middle East, including a market for renewable technology, to The fact is that we make choices every day and in Iraq, where they’ve just allocated a lot of give researchers the chance to develop I think as an industry we need to make that concessions for oil companies that will need We need to technologies. Extremely good ideas will never clear. Yes, energy is used in desalination, but it’s water for oil extraction. Surface water is not be implemented in reality unless policy makers used in lots of other things and together we can enough and therefore they have to use either create a market and public corporations part with their money. come up with a much better sales job because brackish water or seawater. So we definitely We will never have renewable desalination we’re talking about reliability of supply, not believe that there are growth opportunities in for renewable unless a market is created for it. anything else. this market. I would like to ask whether anybody in social Delegate: One thing I have not heard about at Rick Stover: I think we will see more solutions- technology, to or public corporations is ready to have 5% of this conference is resilience. I don’t know how type services, more bundling of wastewater their water desalination portfolio produced that is addressed in your industry. People in the recovery and reuse with water treatment and give researchers by renewable desalination, and to buy the Middle East are pretty much dependent upon water supply. I think we’ll see outsourced water water produced by renewable desalination their water desalination plants. In the event solutions along the same line. The more we the chance regardless of the cost? And to issue a tender for of either natural or man-made disasters, what make desalination simple, efficient, robust a renewable desalination plant and give it in a would be the source of water for people? and reliable, the more we’ll see adoptions of long-term concession? desalination for things we haven’t imagined yet. to develop So when we think about technologies, let’s Delegate: The example from Australia not only think about how to produce very Neil Palmer: I think the small to medium technologies. illustrates that desalination plants have actually large plants, but also about how water can be point-of-use modular units, which are easily been the catalysts for quite a huge investment resilient and available to everyone no matter available to be put in quickly and can be in renewable and wind energy across Australia. what may happen. prefabricated in a factory, will present some real reductions in unit costs of water. They can also I think it’s important to look at the energy use 9) New markets for desalination be financed or procured in a number of ways. across your whole portfolio, not just plant by People get excited about the cost of water, and Extremely good plant. I don’t think there’s ever a “one size fits all” Chair: Where are the new markets for yet in the whole scheme of expenses in your solution, and I think sometimes we obsess over desalination: in the oil, mining and power household, it’s about 1%. In Australia we’ve ideas will never the wrong thing. It is true that desalination uses industries? been traditionally resistant to paying the true significantly more energy than rain falling from Lance Johnson: I think there are markets for value of water. be implemented the sky into a dam and flowing to households. desalination in all of these industries. Dow is But we make energy choices every day and involved in oil fields with down-well injection the amount of energy in society used for using sulphate removal technology in order 10) Research and development in in reality unless desalination is still very small. In fact, if people to avoid barium sulphate scaling. If you want desalination were to use an efficient showerhead and reduce to get oil out of mature wells, you need to Chair: How can we link the market with policy makers the amount of water going through their hot Dr Corrado Sommariva inject water to force it out of the well. In terms research & development (R&D), and the funds water systems in their home, they could drop The President of the IDA, Corrado is a very well-known consultant with an international of fracking, there’s a need, but where are the necessary for R&D? and public energy use across society 5 times as much as drivers if there’s no regulations to manage it? reputation. He is presently the Managing Director of ILF Consulting Engineers in the changes in desalination. Neil Palmer: In our centre in Australia, we Middle East and the head of the company’s worldwide desalination activities. He joined Large volumes of water are used in the mining would like a mix of private industry. We have a corporations So I think as an industry, whilst we focus on ILF in 2009 after working nine years with Mott MacDonald, where he led the desalination industry. They then experience problems with strong commercialisation focus, and we have energy efficiency, we do ourselves a disservice and water treatment group as Managing Director of Generation Middle East. tailings which they just evaporate leaving the some government seed funding for those part with their by obsessing about energy use, because we metals behind. One can recover copper from projects which the private sector won’t fund Over the last 20 years, Corrado has held many roles while working in desalination; he has kind of push the message that’s in the media. tailings using ion exchange, and you can use because they’re too risky or it’s too far away. But money. gained a lot of experience in thermal reverse osmosis and wastewater systems and served In Australia, every time the word desalination membrane technologies as well to concentrate we would love to have more involvement from appears in a headline, it’s preceded by the term in all the major desalination developments in the Middle East in various roles. Corrado has it, but that’s not practiced yet because it’s not of the private sector and the water industry in our “energy guzzling”. I think we need to talk more been a member of the IDA Board for 12 years. He has a PhD in Chemical Engineering from economic importance . So I think there’s still a projects. It’s hard to get them interested, but it is about choices. Neil Palmer uses the example University and a Diploma in Management from Leicester University. future in applying membrane and ion exchange changing and we are making progress. of air conditioning; the one I always use is technologies in other industries. 128 Brave new world // The future of desalination 10The future of desalination 129 Inspiration from industry As pressure on the world’s water resources grows, industry is being forced to be more proactive in addressing water-related challenges. Securing current and future water needs while meeting increasingly tight regulations is key to obtaining licences to operate.

In this session, six water specialists share their experiences of innovation in industry, with stories of best practice from the Speakers include Gerrit Veenendaal, General Manager, NieuWater B.V. oil & gas, mining, chemical, Rossana Brantes Abarca, Public Policy and Environment Issues Analyst, The Chilean Copper Commission (COCHILCO) refining & petrochemical, Robert W. Bailey, Water President, CH2M Hill and food & beverage sectors. Dr Ilham Kadri, General Manager EMEA and Commercial Director EMEA, Dow Chaired by Elise Maury of Cristina Viganò, Proposal Manager, Ondeo Industrial Solutions, Italy Ondeo Industrial Solutions Laurent Panzani, Global Food & Beverage Market Director, [ ] Veolia Water Solutions & Technologies ROME Global water summit 2012 Brave new world Inspiration from industry

Municipal wastewater reuse in the oil & gas industry The context of high quality water to the co-generation plant where the steam needed for the low-pressure The Dutch Schoonebeek oil field, the largest This project is a steam injection system is produced. onshore oil field in Northwestern Europe, was discovered in 1943. Due to the increasing The production plant uses advanced groundbreaking difficulty of extracting high viscosity oil, technologies such as ultrafiltration and production stopped in 1996. However, in 2002 biological active carbon filtration as an example of Nederlandse Aardolie Maatschappij (NAM), innovative way to remove nutrients in order a Shell/ExxonMobil joint venture, resumed to avoid biofouling. In subsequent treatment how the reuse production at the Schoonebeek oil field using steps, advanced membrane technologies low-pressure steam injection to make the oil are used such as reverse osmosis (RO) and more fluid and easier to extract. electrodeionisation (EDI). of municipal The innovative design of the NieuWater plant, wastewater The water solution which required an investment of €40 million, In order to produce the ultrapure water required was possible due to a unique cooperation with can be utilised to generate the steam that is needed for oil the oil company in the framework of a 25-year production, a water source had to be selected. contract. This allowed for a unique design: less Treated municipal wastewater was chosen, as waste, almost no chemicals added, sustainable for industrial traditional water sources such as surface water materials. and groundwater are scarce and not available This project is a groundbreaking example purposes in the for industrial use. of how the reuse of municipal wastewater The ultrapure water plant, which was built by can be utilised for industrial purposes in Netherlands and NieuWater B.V. (a joint venture by the Water the Netherlands and internationally, and Supply Company Drenthe (WMD) and the Velt it highlights the importance of long-term internationally. & Vecht Water Board), supplies up to 8,200 m³/d successful public-private collaboration.

The treatment scheme at the NieuWater plant

Biological active RO RO (second pass) Gerrit Veenendaal Ultrafiltration carbon filtration (first pass) & EDI Gerrit Veenendaal studied chemistry at the University of Utrecht and control engineering at the Delft University of Technology. He graduated in 1976, and started at the Kiwa Research Institute of the Netherlands Drinking Water Companies, as a researcher and manager of the analytical chemical division (now called the KWR Watercycle Effluent Ultrapure water Research Institute). In 1987, Gerrit moved to the Northern part of the Netherlands to become director of a 11,200 m³/d 8,200 m³/d small water laboratory (WLN). In 20 years, he developed this laboratory to a centre of water quality and water Flush technology. They created the concept for the Ultra Pure Water plant of NieuWater. Since 2000 he has been involved Wastewater Concentrate with Drinking Water Company of Drenthe (WMD) regarding drinking water supply in Indonesia. In May 2011, Gerrit treatment plant 3,000 m³/d moved to WMD as Technical Manager, responsible for water production, technology and innovation. Since June 2011 Gerrit also became the General Manager of NieuWater, owner of the Ultra Pure Water Production plant. Source: NieuWater B.V.

132 Brave new world // Inspiration from industry Gerrit Veenendaal // Municipal wastewater reuse in the oil & gas industry 133 ROME Global water summit 2012 Brave new world Inspiration from industry

Water management in Chilean copper mining

Northern Chile’s water challenge processed are the recirculation of water from raw seawater needs to be evaluated on a case- tailing dams back into the process and the use by-case basis, depending on the type of ore and Overall water Water is a strategic resource for mining: it is of thickening technologies. Industry’s efforts in the processes used to extract the metal. needed at all stages of mineral processing and optimising water consumption, however, are securing sufficient water is therefore key for the Looking forward, the mining industry will have demand is not sufficient to secure the water needs for new sustainability of the industry. to continue making efforts to increase water mining projects or mining expansions. efficiency by further implementing water saving expected to Chilean copper mines and reserves are located Desalination has been used more and more to technologies and working with other water in Northern Chile, one of the world’s driest increase the availability of water resources for users to find long-term solutions to Chile’s water grow in the regions. The challenge of securing water for the mining. However, these projects are very energy challenges. development of mining and other industries intensive, mostly due to the need to pump while guaranteeing the needs of communities future, and water from the coast to mining operations and ecosystem protection has become one of located in high altitudes. If we take the Coloso Questions from the Chair the most important topics in Chile’s political water scarcity desalination plant as an example, the energy Could municipal wastewater be considered a agenda. Mining is the second biggest industry consumption of the desalination plant is resource for the mining industry? in Chile and there are large mining resources 3.4 KWh/m³ of water, whereas the energy cost will be further still waiting to be tackled. Overall water demand Treated municipal wastewater which is for transporting the water is 14 KWh/m³, which is expected to grow in the future, and water discharged to the sea could be a resource accounts for 65–70% of the operating costs. intensified in scarcity will be further intensified in water for mining companies. This is currently under The energy demand from desalination plants stressed regions where mining competes with discussion and requires the development of a adds significant pressure to Chile’s energy other water users. legal framework. water stressed system. I believe that desalination will therefore face increasing obstacles in Northern Chile. Another option which is currently being regions The mining industry’s response In addition, authorities are more sensitive to discussed is the development of a swap mechanism between mining companies Faced with increasing challenges to secure environmental impacts related to the seawater located at high altitudes in Northern Chile, where mining water resources, the Chilean copper mining intake structure and the disposal of brine. who would provide desalinated water to water industry has significantly reduced the average A few mining sites have chosen to use raw users in lower altitudes in exchange for access competes with water consumption per ton of copper ore seawater for some processes. In the case of to water sources located in the mountains. processed between 2000–2010. existing operations, significant investments are The high costs associated with the pumping other water The most relevant practices that have required in new equipment that can run with of treated water from the desalination plants contributed to reducing the average direct seawater, and it is more costly to adapt located at the coast to the mining sites would users. consumption of fresh water per ton of ore installations in existing mining sites. The use of be avoided.

Average water consumption per ton of copper ore in Chile, 2000-2012 Rossana Brantes Abarca 2000 2006 2009 2010 Rossana Brantes Abarca is an Industrial Engineer and Biotechnology Engineer who Process (m³/t of ore) (m³/t of ore) (m³/t of ore) (m³/t of ore) studied at the Universidad de Chile, Santiago. She has worked as an assistant researcher Range Average Range Average Range Average Range Average at the Swiss Federal Institute of Technology (ETH) in Zürich, Switzerland and since 2006 Concentration 0.40–2.30 1.10 0.30–2.10 0.79 0.3–2.0 0.72 0.3–2.9 0.70 has worked at the Research and Public Policy Division of the Chilean Copper Commission (COCHILCO). Her professional work in COCHILCO has been mainly in environmental issues Hydrometallurgy 0.15–0.40 0.30 0.08–0.25 0.13 0.07–0.92 0.13 0.06–0.8 0.13 and public policy related to copper mining, principally dealing with water resources and energy and greenhouse emissions. Source: Cochilco

134 Brave new world // Inspiration from industry Rossana Brantes Abarca // Water management in Chilean copper mining 135 ROME Global water summit 2012 Brave new world Inspiration from industry

WaterMatch – Find your water reuse partner What is WaterMatch? typically provide for advanced treatment has been built for raising awareness of the technologies that are used in municipal importance of water reuse in Australia. This is WaterMatch is a non-commercial website wastewater reuse. the first project in Australia to use membrane designed to promote the beneficial reuse of bioreactor technology in the production of municipal effluent by industry and agriculture recycled water. using the power of social networking. We have Success stories created a global matching map and populated Although WaterMatch wasn’t around when the it with the locations of municipal wastewater three following projects were realised, they are Questions from the audience treatment plants (WWTPs) around the world. good examples of the kinds of project we hope Kathy Shandling, Executive Director of the The map includes the names and locations of to see happen as a result of using the website. International Private Water Association: How over 20,000 WWTPs in countries such as the U.S., can the different tools that CH2M Hill has been China, India, Mexico, Chile, Brazil, Australia, Spain involved in (WaterMatch, Global Water Tool and and Italy. Wastewater reuse in the West Basin Municipal Water District (Los Angeles) Local Water tool) work together to help address By signing up for WaterMatch, industrial and the balance between industrial development About 53,000 m³/d of the wastewater treated and water resource management? agricultural users can find municipal WWTPs at the Hyperion WWTP, the largest WWTP in the close to their current and potential future Los Angeles Metropolitan Area, is treated to a The Global Water Tool and Local Water tool are operations. The tool has been developed higher standard and conveyed to several oil and designed for industries to use as part of their in collaboration with over 200 companies gas refineries in the area, where it is used for local risk management, whereas WaterMatch around the world – including WBCSD, IPIECA, Robert W. Bailey cooling and boiler feedwater. Freshwater that takes another step and tries to answer the ConocoPhillips and GE – which have signed would be otherwise used to cover this water question: if you are in a water scarce area, is the Mr Bailey is the President of the Water on as WaterMatch Collaborating Partners. The need at oil and gas refineries can be used to municipal sector a potential source? In essence, Business Group for CH2M HILL. In this site has been working for 3 months and has provide water to 30,000 homes. the tools are complementary. role, he has worldwide responsibility received about 40,000 hits to date. for the development, project Empire Generating Project performance, and risk management What are the benefits of (Rensselaer, New York) of all CH2M HILL water, wastewater WaterMatch? To meet the water demand of a new power and water resource projects. CH2M Water is becoming one of the big needs for plant built in the city of Rensselaer, treated HILL’s Water Business Group brings the industry and one of the biggest potential wastewater from a nearby municipal WWTP was firm nearly a billion dollars in revenue liabilities on their balance sheet. Water intensive used. A tunnel was dug under the Hudson River Municipal annually, employs approximately industries such as mining and food & beverage to transport the effluent to the power plant, 3,000 people and completes more need to manage water-related risks and secure where it is used for cooling water and process wastewater reuse than 4,000 planning, design and water supply for their operations. Reusing water. As a result of this project, we are reducing construction projects each year for municipal wastewater sources promotes the pressure on the Hudson River, which is a big is a win-win-win economic development in water scarce areas concern particularly during the summer periods municipal and industrial clients. Mr by making additional water available. with high peak demand. Bailey currently serves as a member of approach with the Water Security Council and Water Municipal wastewater reuse is a win-win- Gippsland Water Factory Steering Board of the World Economic win approach with many benefits to the many benefits to environment, communities and industry. (Victoria, Australia) Forum and the Water Environment As the tool will continue to contribute to The plant combines the treatment of municipal Federation’s Global Water Strategies the environment, the reduction of industrial and agricultural effluent from 9 towns and up to 35,000 m³/d Council. Mr Bailey also is a member of freshwater use, more freshwater will be available of industrial wastewater from a local paper mill. CH2M HILL’s Board of Directors. for ecosystems. In addition to the increased High quality recycled water (8,000 m³/d) is sold communities and availability of freshwater, communities will back to the paper industry, easing pressure benefit from the funding that industries on local freshwater sources. A visitor centre industry.

136 Brave new world // Inspiration from industry Robert W. Bailey // WaterMatch – Find your water reuse partner 137 ROME Global water summit 2012 Brave new world Inspiration from industry

Municipal wastewater reuse in the chemical industry: A PPP success story

Dow’s approach to sustainability management profile are: legislation which provides tax exemptions to companies that use treated wastewater. Population growth will put tremendous • Between 1970 and 2000 we explored and It has become the example of a successful pressure on our water, energy and food implemented several solutions to reduce PPP for water management, providing a Dr Ilham Kadri supply systems in the future. At Dow we are freshwater use in the manufacturing benchmark for the other 196 manufacturing very much aware of the limited availability process, which led to significant water Dr Ilham Kadri is General Manager of the Advanced plants we have around the world. We are of resources and the challenges ahead. Our savings. Materials Division for the Middle East and Africa using the lessons learned at Terneuzen in sustainability commitments and goals are and Commercial Director of Dow Water & Process • In 1990 we started dialogue with the other manufacturing plants. embraced in our mission and we take them water authority and the design of the Solutions for Europe, the Middle East and Africa for very seriously. In addition, we have gone one step further, first few water reuse plants. The first plant The Dow Chemical Company. She is responsible for and engaged in an innovative cooperation Water management is key in our started to operate in 1995. driving the development of the division and the with 19 partners including other chemical sustainability agenda. We have around 200 individual business units throughout the regions, and • Between 1996 and 2005 we developed a producers, research institutes and water manufacturing plants around the world, has secured multi-million dollar investments for Dow vision for these plants using backcasting companies to implement large-scale water some of which are located in water scarce methodologies to assess the water needs, reuse at a regional level, as part of the E4 manufacturing sites in the Middle East for specialty areas. Our ambition is to eliminate the use of explored alternatives for technologies Water Project submitted under the European coatings and construction materials and reverse scarce freshwater sources in those areas by and evaluated potential technology Commission EU FP7 programme, “Eco- osmosis water treatment membranes. 2020. partners. In 2005 we selected Evides efficient management of industrial water”. Throughout her career at organisations such as Rohm As with other sustainability targets, we have (the water utility supplying drinking and Haas, Huntsman, UCB-Cytec and Shell Chemicals– developed Key Performance Indicators water in the province of Zeeland) as our Questions from the audience Basell, Dr Kadri has held a variety of global leadership (KPIs) to measure our achievements: for technology partner. example, we decreased water withdrawal Takashi Hongo, Senior Fellow at Mitsui roles in business management, sales, marketing, and As of 2007 we started accepting in 2010 by 6% compared to 2009 across all Global Strategic Studies Institute: In my R&D. Dr Kadri was shortlisted on the ConstructionWeek 10,000 m³/d of treated wastewater. 70% manufacturing plants. opinion, tax incentives are effective in magazine “Power 100” list of the most influential of this wastewater is further treated on- encouraging water reuse, but what is the personalities in the building & construction sector site to generate the steam needed in the impact on cost recovery for the additional in the Middle East. She was also selected as a 2012 Case study: Water reuse through production process; it is subsequently used investments in water reuse? a public-private partnership as feedwater for the cooling tower and “New Generation of Leaders for Africa” by the African The Netherlands is a good example of where Leadership Network. In 2011, Dr Kadri was featured in Dow’s manufacturing plant in Terneuzen, evaporated. We significantly reduced the tax incentives have been adopted. In our the book, Female Leadership: The Power of Women, a Netherlands is located in Benelux, a scarce water and carbon footprint of this facility. case it made sense from an economic point series of profiles of female role models. Proceeds from freshwater region which is home to one of This is the result of unique cooperation with the Dutch regional water authority of view, as treating municipal wastewater for the book are donated to educational projects that the largest petrochemical hubs in the world. reuse was easier and had a lower operational and our water technology partner, showing empower young women. In order to expand our operations in this that sustainability and profitability are not cost compared to other alternatives. The Dr Kadri earned a Diploma in Chemical Engineering area, we developed a water management mutually exclusive. tax incentive has been very relevant in model based on the optimisation of water encouraging other chemical producers from l’Ecole des Hauts Polymères de Strasbourg, and consumption and the reuse of water in our This project has received several national in the region to reuse water, and has also a Masters Degree in Physics and Chemistry from process. and international awards, and its success encouraged the collaborative effort that we Université Claude Bernard in and Université Laval has influenced the adoption of legislation have engaged in with 19 partners looking at in Québec. She holds a Doctorate in Polymers from the The key milestones and achievements which will further encourage industrial water a joint solution for water treatment and reuse Université Louis Pasteur, Strasbourg, France. that have made Terneuzen our best water reuse: in 2009 the Dutch parliament adopted at the regional scale.

138 Brave new world // Inspiration from industry Dr Ilham Kadri // Municipal wastewater reuse in the chemical industry: A PPP success story 139 ROME Global water summit 2012 Brave new world Inspiration from industry

Advanced water reuse in the oil refining & petrochemical industry Industry challenges the refinery relies on the treatment of polluted groundwater to meet its water needs. Solutions The oil refining The oil refining and petrochemical industry is to meet water needs at these sites entail the use one of the most water intensive industries in of advanced wastewater treatment technologies Italy. It is facing strong regulatory pressures, and petrochemical and high costs (see figure below). particularly in regions where access to industry is one freshwater is very limited and effluent discharge The cost of treating the water for reuse is high limits are very stringent. In addition, the in all cases. For case 1, in addition to the energy of the most water petrochemical industry needs high quality cost, the replacement of membranes is a large process water. cost component due to the bad quality of the intensive industries refinery wastewater. It is more expensive to treat Water reuse options in water in cases 2 and 3 though, because more extensive treatment is required, and the energy in Italy. Southern Italy and sludge disposal costs are high. Even so, In response to these challenges, wastewater the company is obliged to treat and reuse the reuse options have been increasingly adopted groundwater and has no alternative. by the petrochemical industry in Southern Italy. It is facing We have worked with several refineries that However, as the cost of freshwater withdrawal have implemented innovative projects in order is expected to increase in the next few years, strong regulatory to be able to meet their water needs while we expect that the difference in cost between complying with strict effluent discharge limits. reusing wastewater or contaminated water sources and using freshwater will decrease pressures, especially If we look at three innovative projects that we significantly. This would make water reuse have worked on with the ENI Group, in one case an attractive option for industry, even in the where access to the solution is based on reusing wastewater absence of the types of constraints that the oil & freshwater is very from the refining process. In the other two cases, petrochemical industry faces in Southern Italy. Industrial water reuse projects at ENI Group refineries in Southern Italy

limited and effluent Operating discharge limits are Case study Water needs Technology cost (€/m³) Case study 1: 9,000 m³/h Ultrafiltration (tertiary treatment) 2.00 Reuse of refinery Reverse osmosis for the production of (EDI is not very stringent. wastewater demineralised water included) Cristina Viganò Electrodeionisation (EDI) system Cristina Viganò graduated in Environmental Engineering, and works as Proposal Manager Case studies 2 & 3: Case study 2: Primary treatment for arsenic removal 3.00 of Ondeo Industrial Solutions in Italy. Ondeo IS has developed and realised the most Reuse of 7,200 m³/d Membrane bioreactor (MBR) (IX is not contaminated Reverse osmosis for the production of included) important water treatment plants for Italian Refineries and Petrochemical sites applying Case study 3: groundwater demineralised water mainly membrane technology (MBR systems, UF and RO) with the final target of 14,400 m³/d Ion exchange (IX) system wastewater or polluted groundwater reuse to preserve other surface water sources. Source: Ondeo Industrial Solutions

140 Brave new world // Inspiration from industry Cristina Viganò // Advanced water reuse in the oil refining & petrochemical industry 141 ROME Global water summit 2012 Brave new world Inspiration from industry

Water for food & beverage: Market trends & opportunities

The food & beverage (F&B) market is the largest gaining value from liquid waste, an increasing ones located in emerging countries, high level industrial market in the world, with a $2,600 number of companies are exploring options to technologies such as zero liquid discharge In the next few billion revenue that represents 13% of the gain value from their by-products. For example, (ZLD) schemes are being used. Existing plants total industrial market segment. This market brewers are looking at extracting the valuable face different challenges. For example, we are has a 4–5% annual growth rate globally due to organic part of their spent grains to produce working with large beverage companies to find years we are population growth. As opposed to the oil & gas biogas from that alternative resource. solutions for reusing the water used in their and mining industries, the F&B industry is a local clean-in-place (CIP) systems, which generally expecting to see When it comes to generating value from market: F&B manufacturing plants are located goes to the wastewater treatment plant after wastewater, the most recent trend has been everywhere across the world. the cleaning process. more and more end of the pipe product valorisation, whereby The F&B industry is a big consumer of water remaining elements (mainly nitrogen and In the future we will see wastewater being and energy. Water is used for many purposes phosphorus) are extracted from the wastewater reused inside the product, particularly in water F&B plants in manufacturing plants: as an ingredient, to to generate usable products such as fertilisers scarce areas. There is no real application for this clean equipment, to produce steam, to cool the and bioplastics. at the moment, but we have proven that it is which will be process, and so on. In addition, water quality technically feasible to secure the water quality is very important to meet the strict safety Water reuse and the integrity of the product. This is still very able to cover requirements in food & beverage processing. controversial in the F&B industry, but some F&B was one of the first industries to implement companies are already planning for this step, The market is dominated by global players from 50% up water reuse in their operations. In the last 15–20 and we are ready to support them. such as Nestlé, Cargill, PepsiCo, Kraft, Unilever, years F&B sites have been mostly looking at Heineken, Coca-Cola and many more, who low hanging fruits, taking water out of certain to 100% of have committed to ambitious sustainability manufacturing units, treating it and reusing Emerging contaminants goals including water and energy conservation it typically for boiler feedwater, cooling water The industry is also facing stricter requirements their energy targets. For example, the amount of water used or cleaning purposes. These solutions can regarding process and waste waters due to per unit of product is a very important KPI, be delivered with a traditional portfolio of new legislation on emerging contaminants requirements particularly in the beverage industry. technologies. such as endocrine disruptors, heavy metals and pharmaceutical residues. This will The F&B industry is very much exposed to In order to move forward and further require the introduction of new technologies with the biogas consumer concerns, and so maintaining their improve water efficiencies, F&B clients are and the adaptation of existing systems. green image is vital for business. Product now increasingly looking for more advanced These new solutions are currently ready for generated from integrity and security is absolutely key: product technologies that allow water to be recovered commercialisation. Laurent Panzani quality is what is really behind F&B brands. from their wastewater treatment plants and put back into the production process (such their wastewater Laurent Panzani obtained a Food Engineering & Biochemistry degree in 1990 in France, Market opportunities & trends as advanced anaerobic or aerobic treatments Questions from the audience and since then, has occupied several technical and sales positions in various American followed by membrane systems and advanced Question: Who is setting the quality targets treatment. and French companies (including GE Water & Veolia Water) during the last 22 years, disinfection devices). We see an increased Generating value from wastewater for water reuse in the F&B industry – is it the providing products, technologies and services to industrial customers in the water interest in anaerobic MBR technology such businesses themselves? business around the globe. Generating value from wastewater has been as Memthane which combines the biogas an increasing trend over the last 5–10 years. production aspect with the opportunity to treat Generally, the water we produce for this type of During the last 10 years, he has specialised in Strategic Accounts Leader roles and as In the next few years we are expecting to see the effluent to a suitable standard for reuse. application is drinking water quality according to a Business Director mainly for the Food & Beverage markets. Panzani is now in charge more and more F&B plants which will be able local legislation. Large F&B companies usually ask of developing Veolia Water Solutions & Technologies activities on a global basis in this to cover from 50% up to 100% of their energy Our customers face different challenges us to go beyond drinking water requirements to sector, supporting local business units. requirements with the biogas generated from depending on the type of F&B site. For a large avoid any water quality-related risks. their wastewater treatment. In addition to share of greenfield projects, particularly the

142 Brave new world // Inspiration from industry Laurent Panzani // Water for food & beverage: Market trends & opportunities 143 Water technology idol

Five companies with early stage technologies which could change the future of water make their claim to be Water Technology Idol 2012.

Each finalist is given ten minutes to convince everyone of their technology’s merits. A panel of expert judges then ask the tough questions, and the winner is decided by an audience vote.

Speakers include Laura Demmons, CEO, Sylvan Source Inc Kris Looney, President, Selenium Ltd Panel members: Professor Hans Coster, Chief Scientist and Tom Pankratz, WDR Chairman, INPHAZE Pty Ltd John Tonner, Consolidated Water Co., Ltd Olgica Bakajin, CEO, Porifera Inc Lydia Whyatt, FourWinds Capital Management Rod Komlenic, Product Manager, Ahlstrom Filtration [ ] ROME Global water summit 2012 Brave new world Water technology idol

Sylvan Source Inc: WINNER Global Water Awards An innovative water processing platform 2012

Introduction SSI’s improvements in energy efficiency. The technology in a nutshell: An innovative thermal-based system Sylvan Source Inc. (SSI) has developed a • Pretreatment process: Unlike for reducing water contaminants, flexible technology platform for treating water conventional technologies, this system with great improvements in energy for use in industrial processes. The company does not suppress the scaling process. The efficiency. states that this system will provide significant compounds that form the hard scale are cost advantages and energy efficiency, and removed before the water reaches the core reduce contaminants more effectively than system. conventional technologies. The core system combines degassing with The technology was presented by Laura distillation and demisting (see figure below). In Demmons, founding CEO of SSI. the degassing chamber, water is heated to near its boiling point. Counter-current steam from Technology overview the distillation chamber strips the dissolved gases and hydrocarbons from the water. In The SSI platform for water treatment can the distiller, water is converted into steam at be broken down into three categories of over 100 °C, separating the steam from soluble technology: contaminants and also killing bacteria and • Core system: Takes in contaminated viruses. The demister acts as a “polisher” and feedwater and produces ultra clean water. separates the steam from entrained liquid droplets. Only “pure” steam is passed to the next • Heat capture and transfer technology: chamber. The condenser cools and condenses It uses no moving parts, no vacuum the steam, producing clean water. The heat that and no heat exchangers. This innovative is recovered from this process is recaptured, to technology is the primary reason behind be used in earlier stages of the system.

SSI system core processes

Degassing Distilling Demisting Condensing

Steam Pure steam Contaminated water Laura Demmons Hot water Laura Demmons is a Founder, CEO and Chairman of Sylvan Source Inc. After leaving a successful career at Hewlett Packard, she turned her Pure water energies toward her long time interest in clean technologies. Starting Heat Sylvan Source with a novel water treatment application for the consumer/ residential business, she has most recently expanded the company’s product line and technology portfolio to include a breakthrough platform Steam Dissolved solids, salts, Entrained salts and solids Volatile gases germs and viruses for large-scale water treatment which incorporates both energy and and hydrocarbons process efficiency gains across industrial and municipal applications. Laura has a BA Degree from the University of Oregon. Source: Sylvan Source

146 Brave new world // Water technology idol Laura Demmons // Sylvan Source Inc: An innovative water processing platform 147 ROME Global water summit 2012 Brave new world Water technology idol

Intellectual property has the potential to be more cost-effective Questions from the panel plant where the water has similar characteristics than existing systems, even for feedwater with to that of brackish water. We’ve tested these SSI has made SSI has made a robust investment in their It’s a very higher contamination levels than seawater Tom Pankratz: When you go to someone in waters through our system and it works fine. intellectual property (IP). The system has desalination. The Company has looked at the Saudi Arabia and tell them that you want to We’ve identified that our pretreatment is going been developed as a “black box” model. a robust potential performance levels and costs in sell them a black box, they’re going to want to to be easy to manage for desalination. When different thermal Sub-components of the system will be processing produced water from the oil and gas take it apart. How are you going to sell in that we start to get into these other applications, manufactured by separate teams, and no investment in sector. market? we are going to have to make some changes process. Even manufacturer will be able to know everything to the chemistry in our pretreatment. Once the that goes into the system. Only key team Other potential markets for this platform Laura Demmons: We think there’s a pretty their intellectual pretreatment handles the specifics, the core though it’s thermal members know how to manage and develop include industrial wastewater processing, good chance that some of the investors are won’t change at all. the core technology. The key components of steam generation in power plants, bio-fuels actually going to be those customers. They end property. The the system will be manufactured by SSI, and manufacturing, chemical separation processes up wearing two hats, they’re the customer, but Lydia Whyatt: I was wondering about the because it uses critical research will be entirely self-funded. and chemical recovery, and disaster response as an investor they want to have IP protection. wastewater market, and whether that might be system has been situations. We really like the combination of an investment applicable at some time in the future. energy, it’s not The company is undergoing continuous with a partnership that can help bring us into innovation. Demmons believes that SSI is at the market, and is interested in protecting us. Demmons: We don’t think that this is far away developed as the beginning of the technology development Costs and challenges for us. Our technology is a really broad platform. based on today’s John Tonner: People are probably going to curve; the company has many ideas for follow- Independent benchmarking of the SSI platform The thing you have to do for our system is to wonder why you’re getting so much better a “black box” on products, but is focusing on water treatment was conducted for a 378.5 m³/d desalination remove the suspended solids and free oil. After technology. performance out of this sort of heat transfer as an initial market entry point. Follow-on plant designed by Aker Solutions Power that, we can handle it. process than they’ve been getting for decades. model. Sub- technology, cost improvements, expanded and Gas. The water production cost of the If you could just say a little bit about what you market applications, and IP development technology was compared to systems using have done that’s different. components are planned based on funding and market multi-effect distillation, multi-stage flash and strategies. reverse osmosis. This benchmarking was carried Demmons: Without a non-disclosure of the system out on scenarios in the United States, the GCC, agreement (NDA) I can’t go into the details of Advantages and applications the Caribbean, and the Indian subcontinent. how we do it. There are Saudi engineers who The water production cost advantage of the have visited and validated that the technology will be SSI has a small pilot system currently in technology ranged from 17% to 42%; reasons does fundamentally work. What we will do is, operation, capable of processing 0.19– for this include the technology’s higher water under an NDA, invite a bona-fide customer to 0.76 m³/d. This system has validated the manufactured recovery ratio, a low energy requirement and come and see for themselves. There have been underlying technologies in the technology smaller footprint than comparable systems. other companies around the world that have platform, and has been used to successfully by separate visited the plant, and have gone through this treat highly saturated brines and dissolved Another benchmarking exercise analysed process. hydrocarbons provided by oil and gas the energy efficiency of a plant optimised teams, and no companies. The pretreatment process for energy use. The practical energy limit was It’s a very different thermal process. Even successfully removes hard-scale forming found to be 3.58 kWh/m³. Demmons indicated though it’s thermal because it uses energy, it’s manufacturer compounds, decreasing the cleaning that the technology platform has room for not based on today’s technology. requirements of the platform. improvement in terms of energy efficiency. Tonner: You’ve listed different applications, will be able to This platform has taken water with a The company is currently working on a 38 m³/d and a lot of them have different feedwater contaminant level of 147,000 ppm down to pilot plant with SRI International. This project chemistries. What do you think your first target know everything 14 ppm in a single pass through the system. The will provide a demonstration of operational markets are, and is there anything about the technology has consistently removed greater performance, and of the typical industrial flows. feedwater chemistry that attracted you to that that goes into than 95% of hydrocarbons from the tested water. The lessons learned will be scaled up to larger market? plants. The company is looking for $15m–$20m. The SSI technology is a very broad platform. Demmons: What we’d really like to do is first Demmons now estimates that the time to initial the system. Given its outstanding energy efficiency, which target industry. We have a couple of letters of revenue will be within 12 months from funding. is inherent to SSI’s technology, the SSI platform intent for plants in India. One is for a chemical

148 Brave new world // Water technology idol Laura Demmons // Sylvan Source Inc: An innovative water processing platform 149 ROME Global water summit 2012 Brave new world Water technology idol

Selenium Ltd: SELDOX™ enabled membrane technology

Introduction a more reactive oxygen molecule. orthodontic treatment system for children. The technology in a nutshell: The build-up of bacterial films on reverse • This process destroys the bacteria that This technology could be applied to Using a selenium-based membrane osmosis (RO) membranes causes a decrease come within 35 nm of the membrane. membranes, spacers, tubing, equipment coating to create an environment that in the flux through the membrane over time. and accessories in the desalination industry. is hostile to bacterial growth. Selenium Ltd. conducted a proof of concept Selenium Ltd. has proposed a way to hinder Selenium Ltd. has received a National Institutes study to illustrate the efficiency of the the growth of bacterial biofilms, by creating of Health (NIH) grant to apply this technology technology. An RO membrane system an anti-microbial environment on the surface to dental waterlines, and a National Science (including membranes and spacers) coated with of the membrane. By permanently attaching Foundation (NSF) grant to develop the selenium compounds was exposed to synthetic selenium-based compounds to the membrane, technology for RO spacers. wastewater contaminated with Staphlyococcus water flux is maintained, energy and cleaning aureus (S. aureus) bacteria. After 24 hours, the costs are reduced, and the need to pretreat the loss in flux for the Seldox enabled system was water is decreased. Costs and challenges 8%, while the untreated (control system) lost It will cost around $20 to copolymerise the This technology was presented by Kris Looney, 52% in flux. The biomass of the bacteria on SELDOX™ material to a typical $480 RO element. President of Selenium Ltd. The company was the coated membrane was 10,000 times less Looney estimates that the material will make founded in 2004, based on discoveries made by than the biomass found on a similar, uncoated savings of $200/element in the first of year of Professor Ted Reid and Professor Julian Spallholz membrane. The number of colony forming operation. at Texas Tech University. Funding is provided by units (CFU) of S. aureus bacteria in a membrane Emerging Technologies Inc., a venture capital spacer material that was copolymerised with Selenium Ltd. has completed initial research firm based in Austin, Texas. selenium compounds was 0.0001% of the units and development, and provided a proof found in a control spacer. of concept study for water management applications. The company still needs to Technology overview The SELDOX™ materials are carbon-selenium Intellectual property Destruction of bacteria by catalysed redox reaction compounds. The selenium compounds are This is a unique technology with a strong IP not anti-microbial; instead, the SELDOX™ position. The company has been issued 13 compounds catalytically create an environment patents, 7 of which are in the United States. Seldox creates an antimicrobial eect that is hostile to bacteria around the membrane These patents cover the composition of the through the formation of reactive oxygen selenium-based compounds, and the methods species (ROS). The selenium-based compounds with which they are used to create an anti- may be attached to a variety of surfaces as microbial effect. The company also has several Thiols/oxygen a coating or through direct integration at patents that have yet to be approved. Much of the point of membrane manufacture via the IP that covers these compounds is held by Bacteria Kris Looney copolymerisation. Both methods utilise covalent the company as trade secrets pending further Kris Looney is the President of Venture Acceleration Services at Emergent Technologies, attachment chemistries, which means that they development with an industry partner. The Catalytic Inc. (ETI). ETI is a venture firm that funds, manages, and develops early stage breakthrough do not need to leach out of the membrane to development of specific applications for this creation of free radicals platform technologies from research institutions. Kris also serves as President of Selenium, be effective, and do not need to be replaced technology will provide more opportunities to Lysis of over the lifetime of the material. improve the company’s IP portfolio. proximate Ltd. which is a start-up anti-microbial and anti-biofouling solutions company. A business bacteria cells generalist with an entrepreneurial background, Mr Looney previously served as CFO of The technology works as follows: prevents bio lm formation Transformation Enzyme Corporation, where he was pivotal in the financial management Applications Covalent • The SELDOX™ materials catalyse a reaction M E M B R A N E and business development that enabled the company to become an industry leader in between oxygen and thiols (such as This technology was originally intended to be attachment the nutritional supplement market. He also previously served as COO and interim CEO of glutathione), which can be found in used as an anti-bacterial coating for medical the American Red Cross of Central Texas in a competitive philanthropic environment. Mr bacterial cell walls. devices. Selenium Ltd. has obtained FDA 510(k) Looney holds a Bachelor of Arts in Marketing and Master of Business Administration from and CE approval to use SELDOX™ materials • The oxygen molecules acquire an electron the University of Texas at Austin. in dental sealants and orthodontic adhesives, from the selenium compounds, to produce and these compounds have been used in a full Source: Selenium Ltd

150 Brave new world // Water technology idol Kris Looney // Selenium Ltd: SELDOX™ enabled membrane technology 151 ROME Global water summit 2012 Brave new world Water technology idol

optimise its manufacturing processes, carry Looney: We’re essentially there now. We haven’t out a pilot study of the technology, and scaled up to the size of the market, but we’ve gain regulatory approval for use in the water built our cost model to give ourselves room. INPHAZE: industry. Looney estimates that the product will This model is based on what we’re currently be ready to market in 12–15 months. buying materials for, so that is basically a very scalable price. The company still requires a partner to help Online membrane fouling monitor Selenium Ltd. design the manufacturing specifications. To Whyatt: Are you going to ask a manufacturer develop the broad platform of this technology, to share the risk with you, or are you going has obtained the company is seeking a co-development to charge the customer on the basis of agreement. performance? The online FDA 510(k) and Looney: In the past, with regard to compound Questions from the panel production, we have either manufactured the membrane fouling CE approval to John Tonner: Did you look at trying a coated compounds ourselves, or provided a recipe spacer and a non-coated membrane? I would of the compounds to our partner. We could monitor acts like use SELDOX™ presume that you might not see as much of a hit also seek a third party manufacturer. We are a on the flux. technology development firm, and we look at this as a decision for our partners. a canary in a materials in Kris Looney: That’s the obvious next step in the development. We are working with a couple Tom Pankratz: With RO there’s the potential mine. It provides dental sealants of partners to make production scale spacer for a number of chemicals to be used in netting. We feel that this will give us much coagulation, cleaning, and so on. I presume an index that and orthodontic better data. I think ultimately the best way to you’ve explored those commonly used integrate into the filters is going to be through chemicals. describes the adhesives, and direct polymerisation. Looney: We understand these chemicals pose Tonner: The mechanism of SELDOX™ requires no challenge to Seldox activity when used as quantity and these compounds the presence of thiols (glutathione) and oxygen. directed. We’ve done a variety of experiments Would this technology lend itself to the largely with different chemicals, and we’ve looked composition of the have been anaerobic wells that we use for seawater, where through the standards in RO cleaning. In there isn’t much oxygen present? orthodontics, considering the kind of things that kids put in their mouths, there have been material on the used in a full Looney: We haven’t got all of the data on this no negative effects on the dental sealants. yet, but our understanding of the technology is membrane. When orthodontic that it doesn’t require a lot of oxygen. Even in an Pankratz: In the RO business, anything that anaerobic environment, with very low oxygen, touches drinking water has to be NSF 61 the conditions treatment system the selenium redox chemistry is still active at certified, which you usually don’t get until concentrations [of oxygen] that do not support you have an actual product. What’s your NSF strategy? for membrane for children. life. Further, the biochemical metabolic bacterial activity provides the catalysts needed to create Looney: We’re confident that the NSF Professor Hans Coster the reactive molecules. regulations will be no problem for us. This is fouling develop, Professor Hans Coster is the Chief Scientist and Chairman of INPHAZE. He is Emeritus Lydia Whyatt: When will you get to the point based on all of the data we’ve generated to where you get $1,000 of savings for every $20 of date, and the people in the field we’ve spoken the index starts Professor at the University of Sydney (Chemical and Biomolecular Engineering) and the investment? to. University of New South Wales (Physics). At the University of New South Wales he set up to change ahead the Department of Biophysics in the School of Physics. He founded the UNESCO Centre for Membrane Science and Technology and was its Director for 10 years. He also set up of the increase in Biophysics and Bioengineering in the School of Chemical Engineering at the University of Sydney. He was awarded the UNESCO Medal for Outstanding Contributions to To develop the broad platform of this technology, pressure across Science and the Sir Rutherford Robertson Medal for Biophysics. He was President of the Australian Institute and is a Fellow of the Australian Academy of Technological Sciences the company is seeking a co-development agreement. the membrane. and Engineering. Hans Coster pioneered the technique of high resolution impedance spectroscopy and its application to membrane science and related areas. He is the named inventor on all the INPHAZE patents.

152 Brave new world // Water technology idol Professor Hans Coster // INPHAZE: Online membrane fouling monitor 153 ROME Global water summit 2012 Brave new world Water technology idol

The module is separated into two the whole progression, but to be able to say, Introduction Early warning of fouling provided The technology in a nutshell: compartments by a membrane and spacer. A “I’ve now got to take action,” I think requires Advanced warning of the build-up of material Measuring the build-up of material on set of electrodes passes an alternating electric experience that we are hoping to get in the on an RO membrane would allow plant the surface of the membrane, to produce current through the membrane, over a range Early warning of fouling near future. an early warning of fouling conditions. operators to alter operating conditions to of frequencies. A second set of electrodes prevent severe or irreversible fouling as well Tonner: Do you think there is freedom to execute, measures the voltage across the membrane. as to improve the efficiency of their cleaning from an IP point of view? I know there are a few The module measures the magnitude of processes. During the normal operation of an patents covering sensors in membranes. the current and the voltage, and the shift (in RO system, pressure must be maintained across time) between the peaks in the current and (TMP) Coster: There are no competing patents as the membrane to maintain water flux. When voltage (phase shift). This method is known as far as we know. I have discussed this also with fouling has occurred, this pressure will rise electrical impedance spectroscopy. some module manufacturers. For incorporating rapidly.

Transmembrane pressure Transmembrane this directly into spiral wound modules, would Using this information the technology can The online membrane fouling monitor acts Time require the insertion of electrodes into the This technology produce a model of how the membrane is like a canary in a mine. It provides an index module at the time of manufacture. One of impeding the current (the impedance). The that describes the quantity and composition these modules then could become the “canary”. allows the component of the impedance that has the of the material on the membrane. When the This would be a better system, but it would same phase as the current can be plotted on a conditions for membrane fouling develop, the mean that we can’t get to market until we also graph against the component that has a phase plant operator index starts to change ahead of the increase in manufacture the modules with electrodes. The shift with respect to the current. This produces pressure across the membrane. The technology method described above would be a better an impedance “signature” that describes the to optimise the was presented by Professor Hans Coster, Chief way to go to market initially, because it can be layers that have built up on the membrane. Scientist and Chairman of INPHAZE Pty Ltd. manufactured separately and run in parallel. The “signature” makes it easy to see where and performance when the fouling occurs, and the extent of it. Lydia Whyatt: Let’s imagine you get an early Technology overview index Impedance fouling Time indication. What does the client actually do? The “signature” can be described by a set of of the RO They know it’s getting fouled. How do they save At the heart of the system is a small cross-flow parameters. These parameters are then used to Source: INPHAZE money? impedance sensor that is used to construct produce an index that describes the nature of membrane the index; this is composed of a small module, the fouling that is starting to develop. This index plant manufacturers or plant operators. This Coster: If you know that fouling is about to with feedwater going in, and permeate and will be used by the plant operator to decide technology could be distributed through sales take place then you can take some remedial plant, through brine reject coming out (see figure below). The when to take action. to plant operators, integration into new tenders, action, or start a cleaning cycle. There’s a lot of module would be best located in a tributary of or leases. Also, the company could operate the evidence to suggest that if you keep the water the main water feed. monitor for the customer. Funding is required reduced power Advantages and applications flux below a critical level, fouling can be delayed for further development in engineering and for a long time. You could also increase the costs, reduced Layout of a cross-flow impedance sensor This technology allows the plant operator to manufacturing. cross-flow across the module. This would allow optimise the performance of the RO membrane A commercial demonstration unit has you to maintain flux without fouling because the plant, through reduced power costs, reduced membrane been produced, and evaluated by several increased crossflow increases the critical flux. membrane cleaning requirements, and reduced independent organisations. Trials have downtime. The INPHAZE module can be used This is the sort of decision-making that is been conducted by membrane science cleaning to monitor the progress of a cleaning operation best done by the people that run the plants. and technology centres at the Nanyang without disconnecting it from the system. Ultimately, this could be part of the control Technological University in Singapore, and requirements, Professor Coster stated that this would probably system, so that when a parameter reaches a the University of New South Wales. Professor lead to an increase in membrane lifetime as well critical value the system automatically adjusts. Coster indicated that the time to market will be as a reduction in chemicals used in the cleaning and reduced fairly short, because a working instrument has Tom Pankratz: What is the cost to equip not process. already been manufactured. only a 100,000 m³/d plant, but also a skid- downtime. INPHAZE sees a market for this technology in mounted plant? Is this practical for a small industrial system? desalination, wastewater treatment, and water Questions from the panel reuse applications. The sensor has been applied Coster: It’s difficult to give a single answer Current injecting plate electrodes John Tonner: How do you calibrate this to RO membranes, but it can also be used with to that, because if we manufacture in small technology? How do you make sure that it’s not MF, UF and NF membranes. numbers our costs will be greater. Analysis that giving too early a notice? Voltage sensors has been done suggests the energy savings Commercialisation Professor Hans Coster: I think we will be that would be expected are over 10%. The better able to answer that question after we’ve cost of the fouling monitor for a 10,000 m³/d Membrane INPHAZE is currently looking for partners to take completed more field trials. We have certainly skid-mount unit would be around $50,000. You the next step, and is hoping to partner with Source: INPHAZE followed it to the point where you can see would recover that in several months.

154 Brave new world // Water technology idol Professor Hans Coster // INPHAZE: Online membrane fouling monitor 155 ROME Global water summit 2012 Brave new world Water technology idol

Porifera: Advanced forward osmosis membranes

solution. When contaminated water is added The technology in a nutshell: Introduction Advantages and applications to the bag, the water molecules will move into A new membrane for forward osmosis To make the FO process competitive with RO, Porifera conducted tests of the membrane the glucose solution, producing a safe water to systems, promising lower costs and there will need to be improvements in the using test water designed by the U.S. drink. higher water flux rates. water flow rates and the rejection of dissolved government water treatment expert team. solids. Porifera has developed a thin film One of the most intriguing applications of FO The test water had a turbidity of 37.5 NTU, composite membrane that operates at a flux membranes is in power generation. The flow of and a total organic carbon level of 11.8 mg/l. rate of 40 l/m²/hour, and allows only 0.1 g/l water from the more concentrated solution to This feedwater plugged a new UF filter in of salt to pass through (FO mode, driving the less concentrated solution could be used 20 minutes. The Porifera membrane had no force of 1.5M NaCl vs water). The membrane to drive a turbine to generate electricity. The reduction in water flux for over 40 hours. is hydrophilic, and therefore will not suffer a highest flow across the membrane is achieved In a pressure retarded osmosis system, Porifera high degree of fouling. The technology was when a pressure is applied in the opposite has measured a power density of 8 W/m². This is presented by Olgica Bakajin, CEO of Porifera Inc. direction to the flow across the membrane. This greater than the target for commercial viability system configuration is described as pressure- Bakajin has suggested that this technology that was set by Statkraft. Bakajin believes that retarded osmosis. Statkraft, a Norwegian could be used in the desalination and water Porifera will be able to double this target this renewable energy company who is developing reuse industries. The low maintenance costs year. this technology, believe that this process and chemical use would make this technology must generate 5 W/m² of membrane to be Porifera is currently working on systems for attractive to plant operators. This membrane commercially viable. the desalination and water reuse industries. could also be used in a water purification bag This technology will have lower costs, lower containing a highly concentrated glucose chemical use, and lower cleaning requirements. Technology overview If this system is combined with an RO module, Diffusion through a membrane by forward osmosis The process of FO is similar to RO; but instead so that the feedwater must go through of having a pressure gradient that drives the two sets of membranes, the level of Boron water through the membrane, in FO a high contamination will be decreased. Bakajin Membrane concentration “draw” solution pulls the water Saline also sees applications in food and beverage Concentrated draw through the membrane from the feedwater Water processing. The membrane could be used solution recycle solution that needs to be treated. Water to concentrate fruit juices without heat, and molecules travel from a solution with a high without fouling of the membrane. water concentration to a solution with a low water concentration. Bakajin noted that when you don’t have the pressure pounding material Costs and funding Draw Solute against the membrane, you don’t foul the Porifera has received >$10 million of funding Draw Dr Olgica Bakajin Recovery membrane as much. from development agreements with the U.S. Solution government. The U.S. government also provides Dr Olgica Bakajin is currently serving as CEO at Porifera, Inc., a startup company dedicated The membrane that Porifera has developed independent validation of the technology, to commercialisation of advanced membranes and membrane systems. She received her is a composite of several layers. A porous because systems developed by Porifera can be BA from the University of Chicago in 1996 and PhD in Physics from Princeton University hydrophilic support layer provides structure to tested in government labs. Working with the in 2000. She then joined Lawrence Livermore National Laboratory where she conducted the membrane. On top of this layer is a rejection Product government means that the company is close layer that enhances the ability of the membrane independent research first as Lawrence Fellow, and then as a member of the permanent Water to the customer, and the eventual end user. to reject unwanted chemicals. The typical scientific staff. Dr Bakajin led the group at LLNL that discovered fast water and gas flow Dilute draw thickness of both of these layers is ~100 µm. Porifera is currently looking for partnerships in through carbon nanotubes. She has co-authored 8 issued U.S. Patents and her 38 peer Brine solution The membrane can also be coated to further industry, and in 2012 the company will launch reviewed publications have been cited over 4,000 times. She received the NanoTech Briefs reduce the fouling that builds up on the surface sales of membrane elements. Porifera will also Award in 2007, R&D100 Award in 2010 and has been elected APS Fellow in 2011. Source: GWI of the membrane. be looking for strategic partnership and

156 Brave new world // Water technology idol Dr Olgica Bakajin // Porifera: Advanced forward osmosis membranes 157 ROME Global water summit 2012 Brave new world Water technology idol

Questions from the panel licensing agreements. In 2013, the government Tom Pankratz: How many people work for Ahlstrom: will conduct pilot tests of a combined FO-RO your company? Are you still working on carbon system for desalination and grey water reuse. nanotubes, and how many people are working ® Bakajin anticipates that system sales and on forward osmosis? Disruptor electroadsorptive water filtration licensing will begin in 2014. Dr Olgica Bakajin: We have 14 people. It’s a start up, so we’re flexible. Some days, everybody is working on FO, and some days everyone works on carbon nanotube membranes. We see ourselves in the forefront of technology development, so forward osmosis applications are considered the first thing we work towards. Preventing the John Tonner: What were the longest tests that build-up of you did that showed the sustained flux? Bakajin: About a week. The problem is that material on RO we’re doing things in our lab, so if for example our computer stops working, then the test membranes is stops too and we have to restart. We will try to get more data on this, and we need to do really essential if the long-term tests. Pankratz: Do you see yourself as a membrane flux through the manufacturer, or someone developing a membrane recipe to partner with someone who membrane is to will actually manufacture it? Bakajin: We see ourselves as a developer of the be maintained. technology, looking for a partner. Pankratz: When you said you’re going to have elements available commercially at the end of the year, will you cast and roll them yourself? Bakajin: We will be involved in that. Ahlstrom has Pankratz: When people do their tests on little Technospeak coupons in the lab, they get really high numbers. proposed an When two solutions of different concentrations are separated by a semi-permeable Then when they do it on a spiral wound membrane, water molecules will move from the dilute solution to the more concentrated module, you would get half of what you get on electroadsorptive solution. If a pressure is applied to the more concentrated solution, the movement of a little coupon. When you say that you have water molecules through the membrane can be reduced. The osmotic pressure is power densities of 8 W/m², is that a practical filter based on the pressure that is required to prevent the movement of water molecules through the commercially available module, or are you membrane. talking about a coupon? nanometre-scale Rod Komlenic In a reverse osmosis (RO) system, a pressure greater than the osmotic pressure is Bakajin: It’s a membrane cell. There is a lot of Rod Komlenic has worked for Ahlstrom Filtration for 22 years in a variety of sales, management applied to feedwater to force the water molecules into a more dilute solution. This process opportunity in the element design. Right now alumina fibres. and product development roles related to specialty liquid filtration. He is a co-inventor on one removes 98% of dissolved solids from the feedwater. the industry is using modified spiral wound RO patent and has had numerous papers published on water filtration. While working in product In a forward osmosis (FO) system, water molecules move from the feedwater to a modules. They were not designed for FO. The development he identified then acquired the manufacturing rights to what is now known as more concentrated “draw” solution. This process does not require an external source of only reason we use them is that people know Ahlstrom’s Disruptor® as Ahlstrom’s platform technology for water filtration. Since Ahlstrom pressure. An FO system would require less energy than a comparable RO system, and how to make them. At the next osmosis summit, began producing Disruptor® in 2007, Rod has worked as the Product Manager, developing the would be less susceptible to fouling. This would reduce the operating and maintenance I think people are going to be talking about validation data for the technology in a variety of market segments and promoting the media different elements. I think we are all working on costs of the system. to selected markets through a variety of sales channels. that, but are not quite ready to share.

158 Brave new world // Water technology idol Rod Komlenic // Ahlstrom: Disruptor® electroadsorptive water filtration 159 ROME Global water summit 2012 Brave new world Water technology idol

Introduction anywhere from 40 to 120 l/m² of surface per Challenges Questions from the panel The technology in a nutshell: minute. Komlenic stated that this technology Preventing the build-up of material on RO Ahlstrom’s business model is to make filter John Tonner: How can you tell the length that Ahlstrom didn’t invest heavily enough A membrane constructed from nano- has the pressure drop and flow rate of a 1 µm membranes is essential if the flux through the media, not complete filters. The technology of the filter run? Obviously it could improve early on to be able to do all the trials that we fibres attracts charged particles and filter material, but it removes many submicron, removes contaminants from the water. membrane is to be maintained. Ahlstrom has is new to the water industry because the the operation of RO, but how does it fit needed. We had no idea how difficult it was electronegative particles more efficiently than proposed an electroadsorptive filter based company has been focusing on developing economically within existing pretreatment going to be to enter the water market, how an ultrafiltration membrane. on nanometre-scale alumina fibres. This test data, and targeting companies to techniques? conservative it is, and how often you all see technology adsorbs many submicron particles With this technology, Ahlstrom is able to cover manufacture and distribute the filters. The products that promise the moon, but don’t Rod Komlenic: We’re estimating that the that are attributed to primary membrane the entire volume of the filter with a positively biggest challenge facing the company is deliver. This technology original format should be cost effective if you fouling from the water through the natural charged electric field. to educate the industry on how to use a do a clean-in-place (CIP) every 4–6 weeks. Tom Pankratz: I wonder if partnering, or a electro-kinetic potential of the fibres. completely new technology. A filter cartridge can be easily • When the material is immersed in water, the With this new version we’re going to get strategic alliance, would help expedite the must be properly integrated as part of a The technology is owned by the Argonide electric charge within the crystal structure about twice the life. So, if you’re doing a CIP process. system to provide the best value proposition. adapted to Corporation of Sanford, Florida, and Ahlstrom of the nanofibres create a positively charged every 2–3 months it should pay for itself in Komlenic: Absolutely, we’re not well known has exclusive global manufacturing rights to electric field that can extend up to 1 µm The company is looking for customers the CIP savings. in the industry. It is an unlearning process, the technology. The technology was presented from the fibres. who can leverage the technology into the suit different Lydia Whyatt: It looks like there are a lot because everyone only knows mechanical by Rodney Komlenic, Product Manager for the marketplace, not funding. Komlenic stated • Negatively charged bacteria, viruses, of benefits to the technology. What was the filtration, and this isn’t mechanical filtration. Disruptor® filters. that those companies that identify this as a transparent exopolymer particles, and main challenge, and why do you think it’s functions, viable technology then properly integrate organic acids are attracted to the fibres. still an early stage technology despite all of it into a use-appropriate system as early as Technology overview Ahlstrom’s investment? and there are • These contaminants are removed from the possible will have the best opportunity for The adsorptive property of the filter is water. sales growth. Komlenic: I think a lot of the problem was several versions generated by the nanometre scale alumina fibres that have been grafted on to a microglass This process works best in an environment of the material carrier fibre. In a square metre of the fibre where the pH is between 5 and 9. Outside this material, the surface area of the nano-fibres is range, the fibres become unstable, reach their about 42,000 m². Each nano-fibre is about 2 nm isoelectric point and eventually will begin to commercially in diameter and 250 nm in length. dissolve. Komlenic noted that this currently is a “dead end” technology. Once the nano-fibres available. The flux rate through the media can be are used up, they can’t be cleaned, so this technology must be used as the final polishing step of a filtration system. Electric field produced by fibres

Micro-glass bres Electropositive charge Applications Mean diameter = 0.65 µm Up to 1 µm from bre This technology can be easily adapted to suit different functions, and there are several versions of the material commercially available. One version of the technology has a silver- coated zeolite embedded in the material to inactivate the bacteria that are retained by the filter. The destruction of bacteria and viruses can be accelerated by a wide range of catalysts and biological materials. These new innovations have been used to reduce pathogens in water, remove viruses from the air, concentrate norovirus cells for easier detection, and remove organo-phosphate compounds, such as fertilisers. The U.S. Nano-alumina bres Environmental Protection Agency has stated Mean diameter: 2 nm that filters made with this media can be used to Mean length: 200–300 nm concentrate viruses in municipal water testing Source: Dr Jonathan Brant, University of Wyoming systems.

160 Brave new world // Water technology idol Rod Komlenic // Ahlstrom: Disruptor® electroadsorptive water filtration 161 The winning formula is working together

Delivering water and sanitation requires a chain of interlinked activities, with one end of the chain Chaired by Jack Moss being distinctly political, while at the other end of Aquafed there are a series of industrial activities. [ ]

Here, we explore the thesis that there is a natural mismatch between the short-term immediate objectives of the political sphere and the long-term management objectives of the industrial sphere.

Speakers include John Ringham, CEO, South Australia Water This free-flowing discussion brings together Oded Fixler, Deputy Director General, Israel Water and Sewage Authority successful professionals from the private and public Patrick Couzinet, Special Advisor, Veolia Water Solutions sectors to talk about the tension between the & Technologies Eduardo Ismodes Cascon, Chairman, SEDAPAL political and industrial spheres, and how to create Ramon Alikpala, Chairman, MWSS Philippines Dr Dirk Wittenberg, General Manager, REMONDIS long-lasting partnerships. ROME Global water summit 2012 Brave new world The winning formula

The panel was invited to share their experiences of working in an environment that is Water consumption in Israel, 2011 potentially against the idea of creating partnerships, with a view to discussing how the two Industry: 7% apparently different spheres could be brought together.

John Ringham, CEO, South Australia Water: more rainfall in the north of Israel than in the I have been working in the water utility business south, and so in the 1960s we built the National Agriculture: 57% for the last 40 years, in various roles. From my Water Carrier, which carries water from the experience of working in the private sector, north to the south of the country in order to Water consumption and now in the public sector, I have seen all help agriculture in the more arid area. in Israel, 2011 kinds of relationships between the two. The Domestic: 36% During the last decade Israel has experienced 7 role of politics in the position I currently hold consecutive years of drought and severe water is certainly much more prominent than it has shortages. In order to cope with such a major been before. It is very true that politicians have John Frederick Ringham challenge, we have a fair set of tariffs, especially a very short horizon of three or four years, John Ringham has 40 years’ for the domestic sector. We raised the fresh depending on the electoral cycle. On the other water tariff for agricultural irrigation; but we experience in the water industry hand, as operators in the water industry, we also supplied farmers with effluent streams at Source: Israel Water and Sewage Authority in the UK and Australia. He has an are probably the most long-lived industry you a reasonable price, and a more stable manner Honours Degree in Civil Engineering can imagine. To change the thesis put forward, of supply. To reduce water demand we ran a as well as a postgraduate diploma I believe that we need to change the attitudes nation-wide media campaign, called “From Red in Geotechnics, and an MBA. John and culture on both the client’s and the to Black” and “Israel is Drying”. We introduced partner’s side, so that both see the joint benefits has experience in the areas of more supervision and enforcement, graded of entering into long-term partnerships. water resourcing, water supply and water tariffs, regulated the municipal sector, and distribution, and capital planning, as Chair: Are you saying that competitive bidding introduced water allocation and cutbacks for well as in change management and might not be the best answer? the agricultural sector and public gardening. As international bidding. He has also a result, domestic water consumption dropped Oded Fixler John Ringham: Competitive bidding does by 20% in one year. Rainfall recharge, 1976–2011 been involved in work in Poland and have its place, but perhaps less than usual Oded Fixler is a Deputy Director General the Middle East. In November 2000 (Engineering) in the Governmental in terms of really developing partnerships To increase the country’s water supply, we 3,500 John was appointed Head of Water and long-lasting relationships. For example, drilled more wells, treated polluted groundwater Authority for Water and Sewage, Israel. before South Australia entered into the latest sources, and developed new sources such as Services of the South Australian 3,000 He is responsible for development Water Corporation (SA Water) and relationship contract, we spent four months desalinated water, desalinated brackish water, as of Israel’s water sector and seawater working with two potential partners to well as a very good quality treated wastewater later Chief Operating Officer. His 2,500 desalination. He serves as a Head of the responsibilities included water supply understand which of those partners would best which is used for irrigation. By the end of 2013 tender committee and Co-Chairman of fit. If you select your partner from only what is we will have 5 large seawater desalination plants, and wastewater service delivery the Joint Water Committee of Jordan-Israel written on a piece of paper, there is bound to supplying 600 million m³/yr. This is 90% of the 2,000 including Asset Management and and PA-Israel. He has held this role since be tension from the start. domestic water supply. Capital Works delivery to SA Water’s 1,500 2008, and for part of this time he was also 724,000 customers, serving over Chair: Let’s turn to other side of the panel. We also aim to reuse all of our sewage effluent. million m³ Acting Director General and Chairman of Mr Fixler, you have a few slides to show us to Currently, we reuse almost 400 million m³/yr, 1.4 million people in metropolitan 1,000 the Board of the Israel Water Authority. illustrate your view on these points. which we plan to increase to 500 million m³/yr Adelaide and regional South As such, he was responsible for the in 2014. At our biggest reuse facility, Shafdan, Oded Fixler, Deputy Director General, 500 Australia. John was promoted to the wastewater is treated to a secondary level management of Israel’s water resources, Israel Water and Sewage Authority: I would the position of Chief Executive of before being discharged to the aquifer. A few formulation of the water policy, regulation, like to talk about the water sector in Israel, and SA Water in December 2010. John is months later we extract the water from the 0 planning and development of the water how we overcame scarcity. also a director of the Water Services aquifer, treat it and then transport it to the economy. Oded holds a BSc in Civil

Association of Australia (WSAA) and As shown in the line graph opposite, rainfall south in order for irrigation. We are now reusing 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Engineering from Technion, Haifa and an WaterAid Australia. recharge in Israel can vary from 80% of our effluent, and the water is of a very MBA in Finance from Tel Aviv University. 600 million m³/yr to 3 billion m³/yr. There is good quality. Source: Israel Water and Sewage Authority

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Our plan is to reduce the use of potable water of providing water security to the state and the Chair: Patrick Couzinet, from the perspective of a % of national effluent used, by country Development of in agriculture and increase the use of effluent construction of desalination plants, the price private operator, could you tell us your thoughts Patrick Couzinet and brackish water. The development of 100 had to rise so that we also could achieve full about maintaining long lasting partnerships? Patrick Couzinet is currently Special the water sector in Israel is geared towards cost recovery. So in essence, the prices have Patrick Couzinet, Special Advisor, Veolia the water sector increasing living standards, regardless of the 90 doubled in the last four years. If you listen to Advisor to the CEO of Veolia Water Water Solutions & Technologies (Saint- political arrangements. Water is a complicated local media or politicians you will hear that Solutions & Technologies. In 1989 80 Maurice): Today I would like to share three in Israel is puzzle, but we believe we’ve got the solution. 80 prices tripled, but that is due to the structure Patrick received a Masters in Physics optimistic ideas. Our world is changing – we of the tariff. If you take one part of the tariff it (Strength of Materials) from Ecole Chair: I think we have to look at Israel as have to face climate change, incredible geared towards 70 looks like it tripled, but if you look at the whole Supérieure Industrielle, Paris, and a perhaps being the world of tomorrow. If I increases in population and economic crisis. I bill then you see that it has gone up by around understand you correctly, water has become so think that the water community is impacted by Degree in the History of Art from the 60 100% over the last four years. For the first three increasing living important in your country that it is now beyond all of these changes, much more than any other Université de la Sorbonne. He earned years of that increase, there was not a murmur politics. You managed to de-couple short-term % 50 community. But we have to be optimistic. We a Masters in Mathematical Logic from about the rate of increase. It was only when it standards, political challenges from long-term issues. Can have seen that in water scarce countries like the Université de Jussieu in 1990. started to rain and we had floods that people you tell us a bit more about how you achieved 40 Israel and Australia, private operators and public started to complain about the building of Patrick joined the Bouygues group that? utilities/governments cooperate well in order to regardless of desalination plants. in 1991 as a Project Manager. From 30 cope with water sector challenges. Oded Fixler: Before the establishment of the 1993–2008 he worked for Dalkia as Chair: One of the key successes was one brave the political Israel Water Authority in 2007, there was the The first idea I would like to share is that when 20 17 minister, is that right? the International Development Vice Israel Water Commission. The tariffs were set we are facing a huge and vital challenge 10 President and President of the CIS arrangement. by a legislator, and they were not cost recovery 10 8 John Ringham: Two brave ministers, to be we have no problem between the private countries. Patrick joined Veolia Water tariffs, they were subsidised. Tariffs were not 5 fair. The Minister for Water at the height of the and public sector; we work together and 1 1 Solutions & Technologies in 2008 in set in an economical and equal way. When the 0 drought was in a very unusual position. She independently of the legal framework to find New Business Development, before government decided to establish the Water did not actually belong to the government solutions. I am sure that the more difficulties we USA Italy Israel Spain taking up his current role in 2010. Central Europe Authority, we were authorised to deal with all Greece party; she was an independent who was face, the more solutions we will find together. the aspects of the water sector management. Australia taken into the cabinet to give the government Secondly, new technologies regarding metering party a majority. If she succeeded she was a Water belongs to the people of Israel. Nobody Source: Israel Water and Sewage Authority and new management of the network allow hero, if she failed then the Premier could say can extract water without permission. If us to find solutions for delivering drinking Mekorot buys water from the desalination plant she was not one of them. She was very brave someone extracts water with a lower cost than water and sanitation services to an increasing at the price set by the government contract. We at the beginning, and our current Minister the cost of extraction and delivery, they pay a population in developing countries. I think that now have full cost recovery, even though there also thought that the prices had to go up to levy. The levy works as a cross-subsidy for the these new technologies allow us, jointly with In water scarce Water is a is a cross subsidy between agriculture and the maintain full cost recovery. places where the cost of fresh water is higher. domestic sector. local authorities, to develop the tariff system, We suggested farmers to swap the fresh water Chair: This is actually the case that proves me including tariffs for the poorest parts of society. countries... complicated allocations to larger quotas of the reused water Chair: John, do you see parallels in the way wrong. You had two successive ministers from A good example is Nagpur, India. The target and they are pleased with this arrangement. Israel has gone and the way Australia is two different political backgrounds, apparently is to supply fresh water to all inhabitants 7 private operators puzzle, but we With these measures we managed to meet the developing? working in superb partnership with South days a week, 24 hours a day. This wouldn’t be difference between natural replenishment and Australian Water. economically possible without a new vision John Ringham: There are definitely parallels. and public water demand. So everything is dealt with from for metering and network management. I am The diversity of supply is key to the main John Ringham: You have to bear in mind the believe we’ve one institution, the Israel Water Authority. satisfied to see that the private sector can bring strategies of most of the major utilities. In circumstances. During the 2000s the situation the technology, tools and knowledge that utilities/ Chair: The results seem spectacular. Who deals Western Australia it is the same. We are certainly across the whole of Southeast Australia and got the solution. give authorities the opportunity to develop with the operation of facilities and delivery looking to reuse water for as many purposes Western Australia was pretty dire. At one point something that was not possible in the past. governments services to the users? as we can. Regarding the diversification of we had contingency plans to supply a large supply, we have three major sources: the Murray number of our customers with packaged water The third idea is much more of a dream. We Oded Fixler: The bulk water supplier is cooperate well Darling Basin, desalination plants and local because we believed we wouldn’t have enough have heard many politicians talking about green Mekorot, a government-owned company. groundwater catchments. So we are following water otherwise. And when you get to that sort growth. I think that the water industry is crucial Mekorot supplies water to the municipalities, the same sort of line. of situation politics tend to either go out of the in this new shift towards a green economy; in order to cope which have municipal water companies. window or become very much uniform, as the I would argue that it is the most important We had international tenders for all of the Chair: You recently doubled the price of water, biggest risk becomes not being able to supply player. I am very happy to be a part of that and with water sector desalination plants. Desalination plants are which was a highly political exercise. the population, i.e. supply the voters. Then there to be able to exchange ideas, knowledge, and procured on a competitive basis by the Water John Ringham: It was very political. As a result tends to be a lot more cooperation. technologies with public authorities. Authority, with Mekorot acting as the off-taker. challenges.

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Chair: You mentioned working independently nearly one third of the wastewater to the sea, of a legal situation. The idea that I wanted to but the water will have undergone primary Ramon Alikpala explore with everybody on the panel was the treatment. Hopefully in future we will improve Ramon Alikpala is the Chairman of the Metropolitan Waterworks and Sewerage System role of contracts. We always have a contract our system to secondary and tertiary treatment. (MWSS) in the Philippines. He entered the water sector in 2002 as the Financial Regulator of in the private sector, but not always a contract SEDAPAL’s budget is nearly $300 million. In 4–5 in the public sector. Some people think that a years we may have more than $1 billion for the MWSS, the largest public-private partnership water project in the world. In 2003, he was contract is a conflictual vehicle that stops people Lima, but Lima needs three times this amount. appointed Executive Director of the National Water Resources Board (NWRB), the national working together, and others think that it is a So partnership with a private company is a policy making and water regulatory agency of the Philippines. At NWRB, he was selected to way of defining objectives. necessity for us. Chair the ASEAN Working Group on Water Resources Management, the water policy making body for 10 countries of South East Asia. He later joined the Asian Development Bank where Eduardo Ismodes Cascon, Chairman, The problem in Peru is that sometimes the SEDAPAL: We don’t have the winning government and the public in general are he was responsible for coordinating the efforts of research institutions around Asia to help formula; we are still learning about it. In Lima, very resistant towards working with private address the water problems of the region. Mr Alikpala also represents South East Asia as a there are nearly 9 million people, one third companies. We need to solve this situation member of the International Steering Committee of the Global Water Partnership and is the of the country’s population. The River Rimac in order to meet the city’s needs. We are National Vice President of the Philippine Water Works Association. Mr Alikpala holds a Degree is the city’s main water source, and if Lima’s receiving international assistance in order in Business Economics from the University of the Philippines and an MBA with a major in population increases by 10% in the next to better manage our company and our Finance from Fordham University. decade, we won’t have enough water in the contracts. But perhaps our biggest problem is current conditions. communication. We don’t have a committee or commission where people can communicate. We have experienced private concessions, and Ramon Alikpala: That is the point of the water The most important thing about the contract is 10 years ago we began with water treatment regulatory commission that we are pushing maintaining conversation between the actors. My friends were plants, but we realised that we couldn’t obtain for. We conducted a study of different kinds enough water from the river. We built a new Chair: Ramon, could you tell us more about of models and we realised that successful water treatment plant that was inaugurated how you do things in the Philippines, and the companies are those that are regulated. advocating that in July 2011, but it is not working because we lessons you have to pass on to others? Unfortunately, our local governments are self- haven’t finished the network for distributing the regulated; the water regulatory commission the marriage Ramon Alikpala, Chairman, MWSS water to households. would ensure that local mayors have targets Philippines: We have a variety of public- and standards that need to be met. And if the contract should Next month we will inaugurate a reservoir that private partnership (PPP) arrangements in standards are not met, then they need to find will increase our capacity by 15%. However, the Philippines, from lease arrangements to someone who can succeed, whether they are be renewable... in the case of drought this reservoir can only management contracts. I think the most famous process for all of us. from the private sector or any other model. supply Lima with water for 6 months. This year one is in Metro Manila, where we undertook we will finish the first part of the wastewater a 25-year concession and extended it to a Today we have spoken about the marriage Chair: What about the role of the regulatory treatment plant. Currently, we discharge 85% of 40-year concession. We have learned that contract. In the Philippines we do not have commission to maintain a partnership between wastewater to the sea without treatment. The the difference between a successful and an divorce. My friends were advocating that the a public client and the operator? Does the new wastewater treatment plant will discharge unsuccessful model lies in leadership and good marriage contract should be renewable; it regulator fit in between the two? If you are management. There are no doubts about the should perhaps expire after 10 years so that Ramon Alikpala: The regulator does not need to create a water regulatory commission, both partners do not take each other for Eduardo Ismodes Cascon necessarily come in between the two, but they unhappy just but there is a big debate over whether this granted. If you are unhappy just let the contract could act as a mediator, setting standards and Eduardo Ismodes Cascon is Chairman of the Water and Sewer Company for the Peruvian regulatory commission should give out licences finish, and if you are happy then there is the appropriate targets. cities of Lima and Callao (SEDAPAL). He has also held roles as President of the National or contracts, and of which model. And if it is a chance to renew it. We can relate to this, as it let the contract Peruvian Association of Sanitation Service Providers (ANEPPSA), President of the Dispute contract, what length should it be? makes sense for us to make both parties of the Chair: Patrick, what is your view of regulators? contract happy. But there should be good exit finish, and if Resolution Court of the Peruvian Energy and Mining Investment Supervisory Body Patrick Couzinet: I think that a regulator Regardless of the success of both Manila Water clauses as well. The whole point of regulation is (OSINERGMIN), Past Dean of the School of Science and Engineering, Past Academic is necessary. Mr Ismodes Cascon from Peru and Maynilad, we always wonder why the to try to create an environment for investment, Director of Research, Past Chairman of the Center of Innovation, Development, and mentioned something very important – you are happy model has not been replicated in other parts of both public and private. The whole point is Entrepreneurship and Supervisor of the Office of Research, Development and Innovation communication. Before putting the contract the country or Southeast Asia, considering its transparency, with the same angle – water for in writing we need to discuss what we want to then there is at PUCP, Past Member of the Committee on Inventions and New Technologies of the success. Perhaps the conditions for its success everyone. Peruvian Intellectual Property Agency (INDECOPI), and President of the IEEE Section, Peru. are unique to Metro Manila. Perhaps other parts do. Although the ideal contract does not exist, Mr Ismodes studied Mechanical Engineering and has a Master of Communications from of the country don’t have the same conditions Chair: The Philippines also has a lot of public if we communicate well then the spirit of the the chance to operators. Are they regulated in the same way, contract is the key factor in the success of a the Pontifical Catholic University of Peru (PUCP). for successful PPPs, or perhaps another model would be appropriate there. It is a learning or could they be regulated in the same way? long-term commitment. renew it.

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Chair: Dirk, it is your turn. Chair: Mr Fixler, does the importance of Chair: Ramon, necessity is not quite the same Chair: It seems to me that politicians always Chair: Very often public budgeting and communication and building relationships pressure in your country as in Israel or Australia. want to communicate good stories. But they private financial accounting work on a Dirk Wittenberg, General Manager, relate to your experience? Do you see the same message as being want someone else to communicate when different basis. Does this mean that there REMONDIS: I am representing the biggest applicable? there is a bad story to tell. Would anyone like is a real communication problem because private German operator for water and Oded Fixler: The most important thing to comment on that? the fundamental concepts of managing the wastewater services. I agree with Patrick: we is cooperation: everybody needs to know Ramon Alikpala: I would like to comment finances of the water service are being looked have a lot of challenges to address not only what they are contributing. This starts with on the scarcity issue. The population growth Ramon Alikpala: In the Philippines public at from a different point of view? in the future, but now, as the crisis is already the regulated bulk water supplier, who will in the Philippines is a little over 2%, and we utilities are self-regulated. But I always here. Regarding the execution and regulation recognise their cost in the tariff. The municipal have the lowest level of water available per present myself as a regulator to let me be the Dirk Wittenberg: In many countries in the of contracts, my opinion and experience is supplier/distributor is also regulated. The capita in Southeast Asia. We do not need bad guy. That’s the role of a regulator. world, there is a big difference in the rules that there is no contract without existing rules relationship between the bulk water supplier drought periods to be in a scarce situation. I regarding the regular accounting of services, Eduardo Ismodes Cascon: In Lima, and regulations, and the contract has to be and the municipal water company is a type run a water utility for Metro Manila, and we both for water supply and wastewater politicians always promise a water or developed according to these regulations. of cooperation, and there is also cooperation see our role now as not merely providing services. From a German point of view, this is sewerage system in 1–2 years. That is between the regulator and the private drillings. water and sanitation, but in the bigger something that we are currently struggling Good communication is an essential part of impossible to do for such a numerous As mentioned, anyone who wants to pump context of water and economic security. It is with and discussing with the authorities. It is successful operation and execution between population in such a short period of time. from the aquifer needs a licence for extraction. a national security issue. It’s not the lack of a very long-lasting discussion, also within the the contractors, no matter if it is private or Politicians are not helping our people to be water, but the management of water that we EU framework. But this could be a topic for public, and end consumer. Communication There are also water reuse facilities, which aware that Lima is situated in a desert. are more concerned about. a whole new panel, as it is not easy to answer. has a lot to do with the generation of public are private, but supported with grants. They acceptance. Therefore, I think we need to have to cooperate with wastewater treatment take care to ensure that there is proper plants, which are usually owned by municipal communication between the operator, the companies, as they need to receive water of an asset owner and the end consumer. appropriate quantity and quality. End users also need to recognise the need to pay for water I have worked in the field of private operations and its treatment. of public water and wastewater services for the last 20 years, in various countries across the In the case of PPPs that we have with world. In each kind of contractual situation we desalination companies, we issue the tender and experienced very positive things, contracts that select the contractor. In terms of the quality of worked well and were long lasting. the water, the contract is regulated according to the law. Since desalination companies supply But we have also experienced a lot of troubles water to the bulk water supplier, there has to regarding public acceptance and performance be a relationship between the two. We are also of technical services. Those troubles could supplying water to the Palestinian Authority have been avoided by establishing regular and the Kingdom of Jordan. I think that the communication between the supplier, the relationship on the technical level is not subject customer and the owner. to politics. We are trying to overlook politics, and I hope it will continue in this way and improve. Dr Dirk Wittenberg Chair: This really seems to be working for you. Is it because of the enormous pressure that you Dr Dirk Wittenberg, a German national, is currently General Manager of REMONDIS described earlier, or some secret that is making Aqua International GmbH in Luenen, Germany. He is responsible for M&A, business this great level of intelligence work? development and competitive proposals for international water related activities (PPP, BOT, O&M). He obtained the academic qualification to Doctorate Degree level in Civil Oded Fixler: I think politicians in Israel realised that if they continued to hold all responsibility Engineering (Dr.-Ing.) in 1992 at the University of Hanover, Germany. After working for for water, especially for tariffs, we would not different companies in Berlin and Essen he joined REMONDIS Aqua in 2007. His special be able to supply water to end users. We focus is on water technology, urban drainage and wastewater treatment, with 20 years as said that we could run the water sector as a professional in the German and international water sector, the last 10 years at director a closed market with full cost recovery, so level. He is experienced in leading multidisciplinary teams aimed at the realisation the government created the water authority of various projects with a public-private partnership background in national and with a board of directors made of public and international water supply and wastewater systems. government representatives. I think necessity is the mother of invention.

170 Brave new world // The winning formula is working together The winning formula is working together 171 ROME Global water summit 2012 Brave new world The winning formula

Questions from the audience Question: How can regulations between a time though, we made advancements in water Let’s start with something which challenges demand management side. Some people public authority and a public company be reuse. So necessity does bring solutions. the system that will get politicians to line up. have built very expensive assets which, when enforced effectively, as they are both owned by We need to take advantage of that disaster to it comes down to it, they’ve not needed quite Mr Mohsen Mortada, General Manager, the government? get the framework for the system set out. In as much and they have tried to walk away from Malcom Pirnie/Arcadis: How do you mitigate The first terms of national water management, the Israeli them. An example is the number of desalination John Ringham: In the service contract that these three points: making money, looking good example is quite impressive. In Spain expensive plants in the Gulf which were built in the glory we have with the private sector, as a public and serving the public? desalination plants that the EU financed are left days and now they are coming online. This message of all authority, we have detailed performance Dirk Wittenberg: My most simple answer unused because farmers, for which these plants creates disputes between the people who built measures, benefits for exceeding these would be that this is the art of our profession. were built, don’t want to pay the tariffs. the plant and want their money, and the people of this seems to performance measures and also penalties The mitigation of these three points is who ordered it. for not reaching them. Because it is a very If you had a situation where the water which characteristic of being a successful provider, open arrangement there is “pain and gain” to is taken from nature by farmers is paid for (e.g. Ghassan Ejjeh, Director, Besix Sanotec: I be that you can There is one who is delivering reliable, sustainable and be achieved for performance around a set of €0.40/m³) and use that money to subsidise would like to comment on two things. Firstly acceptable service. This is a key issue when circumstances. Our private sector provider can desalination plants, do you think that would the water transfer that we have discussed is only get things providing private services in a public sector; thing that we earn a bonus (speaking in general terms), but bring the price down to a level that would keep not acceptable today on both cost grounds only when this mitigation is successful do we some of their income is actually at risk if they desalination plants going and make farmers and environmental grounds. So in the case of to happen in the have reliable relations with our customers. all seem to fail to perform, and they can actually be paid happy? London, no, it will not happen. It is cheaper to less than the basic contracted amount. This was Justin Heath, Bluewater Bio, London: London desalinate water in London, which is why there Jordi Bruno: I would say yes. Water pricing is water industry worked out in consultation with the potential is currently experiencing mass hysteria about is a reverse osmosis plant. Secondly, all of the forget. When the key; if you can set the pricing correctly, most partner before the contract was signed. So we drought. One of the solutions being suggested plants that were built still have a value. The of the other troubles fall into place. when you have we enter into didn’t impose a contract on that supplier, we is a north-south water transfer scheme, from a plants are there to be used in a crisis, and are worked it out together. water-rich north to the south. Could this still be Christopher Gasson: It seems to me that there because they were needed at some time. done today, and how would we achieve it? when the disaster happened in Spain, it wasn’t a crisis on your long-term There is one thing that we all seem to forget. Christopher Gasson: I suppose what I am really taken advantage of, and money was When we enter into long-term relationships, Christopher Gasson: They will build a tunnel trying to say is that there are two sorts of risks wasted as a result. hands. relationships we need to understand the legitimate needs of from the north to the south when water is which contracts between the private and each party in that arrangement. It is legitimate being delivered around London by trucks – as Jordi Bruno: I wouldn’t say it was wasted, public sector find difficult to manage. One is we need to that the private sector expects to generate long as there is water coming out of the pipes, rather that it was not used efficiently. But the external financial shock; the other is demand a profit, while it is legitimate that the public nobody will build a water transfer scheme in the capacity is there. Droughts will come again. shock. Everyone agrees that once you have understand sector needs to ensure a level of service to our UK. But if people actually need to go out in the Now we are in the process of reforming things these contracts, if everyone works together and customers. I think that is what we tend to forget, street to clean their teeth then they will build in Spain. If anything happens I am sure the communicates well then things will generally Because water to agree on these basic objectives. the tunnel. The first message of all of this seems water price will come to the right level. But that work out. the legitimate to be that you can only get things to happen wasn’t the case in that particular crisis. Market We’ve discussed the marriage contract, which is But one of the things that has been happening in the water industry when you have a crisis on prices were not the government’s priority. is important in general unwritten. It is the shortest contract over the past decade has been a trend away needs of each your hands. that you can think of in terms of words. And I Christopher Gasson: So you are suggesting from what I call retail water concessions, i.e. to every single party from that think that sometimes we over-complicate what The way the water sector works is that things that financial crisis can also be a catalyst. The private suppliers directly supplying water to we are trying to write in a contract. Through get done in a crisis, then people forget about first big disaster for the private water industry the public. If you look at where most of the one of us, communication, we need to understand the them, and then it gradually goes downhill for a was the East Asian financial crisis in 1998, which PPPs happen these days, it’s more of a BOT- arrangement. common shared objectives of what we are long period of time. Eventually there is another upset a number of concessions. The problem type model. That actually sets things up for this trying to achieve and to agree the legitimate crisis though, and things happen again. This of external financial shocks just cannot be disjoint between the private and public sector, when water needs of each party from that arrangement. is an investment profile that we have in the managed within the normal relationship. I don’t especially when you have a demand shock. water sector. But because water is important to think that any of us have a solution to that availability is Jordi Bruno, CEO, Amphos 21 Consulting, In the longer term, I think we need to get back every single one of us, when water availability is sort of problem. When everybody becomes Spain: I would like to reflect on Mr Fixler’s idea towards having private concessionaires being threatened, we all pull together. Politicians get incredibly poor overnight and the utility then that necessity brings intervention. I come from able to take more of the retail risk, rather than threatened, we sensible, you can get them to double the tariffs, needs to increase the rates, private partners Cataluña which has been through difficult times having bright and shiny BOT projects which are we can get them to build large infrastructure. can’t expect to keep hold of their money. in terms of water supply. The whole of Spain all efficiently procured, but then connected to a all pull together. suffered from a drought in 2006 and 2007, but If we are looking for the recipe for success The other area where we’ve seen bad things system which cannot necessarily accommodate it was particularly strong in our region. At that then the first ingredient would be a disaster. happening in the private sector is on the the rigidity of that contract.

172 Brave new world // Questions from the audience Questions from the audience 173 Will water and money meet?

The location of this Christopher Gasson, Publisher of Global Water Intelligence and Chair of the session began by conference is appropriate, as asking the audience their opinion on investment in the water sector.

Question 1: What areas of the water sector Rome was the first place Question 1: What areas of the water sector most need investment? most need investment? • The pro-poor view: Extend water services New water supplies for where water and money water scarce regions: 6.0% to communities in poor countries • The scarcity view: Spend money on Spending money on innovative met. It was the first place to new technologies: 8.3% increasing supplies to address the issues of Extending treatment and an increasing lack of water reuse of wastewater: 33.3% have a sophisticated water Improving water e ciency • The infrastructure decay view: The water in agricultural sector: 8.3% infrastructure and underground systems in supply and sewer system, America and some European countries are What areas of the falling apart, and require renewal water sector need most investment? • The technology view: Spend money on and the first to put a value Infrastructure upgrades for innovative new technologies advanced economies: 15.5% on wastewater. • The reuse view: Extend the treatment and reuse of wastewater • The irrigation view: Improve water efficiency in the agricultural sector Extending water services to low income communities: 28.6% Extending water services to low income Source: GWI Water offers an extremely communities is up there with 28.6%, but really, the winner here is extending wastewater attractive long-term treatment and reuse, with 33.3% of the audience vote. Now a different question, with proposition for investors, the same six options to choose from. Question 2: What areas of the water sector represent the best investment? Question 2: What areas of the water sector New water supplies for but the opportunities for represent the best investment? water scarce regions: 6.3% That’s interesting – investing in wastewater is Improving water e ciency private money in the sector the most popular option, with 30% of the vote. in agricultural sector: 10.0% Extending treatment and Next, our speakers are going to share their reuse of wastewater: 30.0% views on where the money is moving. Extending water services remain severely limited. to low income communities: 11.3% What areas of the water sector represent What is the financial model the best investment? that will bring water and money together in our Spending money on innovative new technologies: 18.8% Infrastructure upgrades for advanced economies: 23.8% brave new world? Source: GWI

Questions from the Chair 175  ROME Global water summit 2012 Brave new world Will water and money meet?

Reducing losses, expanding coverage & financing new waters: Lessons from India

Introduction areas have access to safe drinking water, Development Bank, as well as bilateral donors there are still many parts of cities, as well like the Japan International Cooperation Agency In emerging VA Tech Wabag is a 90-year-old global water as semi-urban and rural areas, with poor (JICA). The money is primarily used to build up company, working mostly in emerging markets, access. infrastructure. However, the problem is not only with a presence in about 20 countries and a markets, losses initial capital costs, but also on-going operating workforce of 1,500 employees. We provide our Investment in these areas is vital, and unless the costs, and here there is a shift from taxpayer- clients with a partner for the complete life cycle. level of investment is above GDP growth, overall can be up to funded subsidies to increased tariff charges to economic growth will not take place (India, with We have patents in process technology and the consumer. The finance model used most 8% GDP growth, requires a minimum of 10% 90%. Reducing products, and we sell to both industrial and frequently is to partially recover operating costs, investment in the water sector per year). municipal clients. Since the year 2000, we have whereby all consumers are required to meet a these losses and built almost 500 plants. There is also a lot of investment in wastewater proportion of these costs, regardless of income treatment and reuse. Previously, when water level. scarcity was not such an issue, priority in increasing water Where the money is going Question for the audience: investment decisions was given to drinking Will tariffs in emerging countries grow by more Most of the money is going to two areas: water supply and not to waste. Wastewater availability than 20% over the next 3 years? • Water distribution: In emerging markets, treatment is now attracting high levels of losses can be up to 90%. Reducing these investment, particularly in emerging economies. Chair: According to the audience, no (see to users is a losses and increasing water availability to The treated wastewater is used for either figure bottom left). Although there are exciting users is a priority. agriculture or industrial processes. Related opportunities in emerging economies, perhaps priority. to this is the requirement for energy: Around these markets will remain limited until attention • Water treatment: Although in emerging 40–50% of the capital in wastewater treatment is given to tariff reform. economies, 70–75% of people in urban goes towards energy. Money is also going into “new waters” such Audience response: Will tariffs in emerging countries grow by >20% over next 3 years? as desalination. Although this is expensive, it has been used in cases where there are no Money is also going Rajiv Mittal alternatives, such as in Chennai, India. Rajiv Mittal is the Managing Director and Chief Executive Officer of VA Tech WABAG into “new waters” Limited, engaged in the business of total water management for the industrial and Where the money is coming from Yes: 26.7% No: 73.3% such as desalination. municipal sectors. With his rich and varied experience spanning over 28 years in the Oil-producing countries in the Middle East water industry, Rajiv heads the WABAG Group globally. With a Bachelors Degree in Will tari s in emerging have enough funds to finance these projects. Although this is Chemical Engineering from UDICT (University Department of Chemical Technology, countries grow by more Design-build-operate (DBO) projects are Mumbai), he started his career with Hindustan Dorr Oliver Ltd, Mumbai as Trainee than 20% over the prevalent, because despite these governments Engineer and was in charge of the development of special projects; Rajiv was responsible next 3 years? recognising the need for private sector expensive, it has for executing turnkey projects from the concept to commissioning, using specialised involvement (to improve management technology. He is an acknowledged leader in the water industry and was recently efficiency and to bring in new technology), they been used in cases do not want privatisation. honored and felicitated for exceptional entrepreneurial excellence by Ernst & Young. Also, Rajiv was awarded the “Water Icon” of the year in 2006–07 and was a distinguished In emerging markets that do not have access where there are no panelist of the UN Round Table on Green Industry. His vision is to make WABAG a €1 to petrodollars, finance comes from multilateral billion company by the year 2015–16. Source: GWI sources such as the World Bank and Asian alternatives.

176 Brave new world // Will water and money meet? Rajiv Mittal // Reducing losses, expanding coverage & financing new waters: Lessons from India 177 ROME Global water summit 2012 Brave new world Will water and money meet?

Financial sustainability in serving all communities: The Ohio model

Introduction other financial resources from bond refundings. Because the United States is quite unique in The money from this was ploughed straight having tax-exempt debt (and so tax-exempt The user- The Ohio Water Development Authority into the programme. The interest rate charged interest on bonds), there is a saving of around (OWDA) has implemented a financing model to communities has always been slightly higher 20–30% for local government on associated which we believe is applicable to authorities friendliness, than that borrowed out, which has facilitated expenses. In addition to the $1.2 billion in elsewhere. From initial funding of a $100 million the growth of the fund. taxable bonds sold in the last 2 years as a result State of Ohio grant 44 years ago, we have since flexibility, and of the 2009–2010 stimulus programme, we made $3 billion of loans, with a net worth today Unlike national programmes, which have have sold $400 m–$500 m in bonds due to of over $900 million. difficult additional requirements, the user- low-cost nature refunds and tax stipulations. The bonds are friendliness, flexibility, and low-cost nature of The model that we operate, which obtains bought by asset management firms, insurance OWDA’s programme means that it is easier for funding through the national municipal bond companies and industry, and our AAA credit of OWDA’s small communities to work with. market, serves all Ohio communities, from the rating makes them particularly attractive. programme very small to the largest in the state. Unlike simple revolving funds, which require continual Programme assumptions Impact of the recession refilling, we used the initial state funding to Although loans may be used for anything means that it is The economic downturn in the U.S. had no provide loans to communities, followed by water- and wastewater-related, in operating the impact on this programme. Two days after the issuance of bonds. The proceeds from this programme, 3 assumptions were made: easier for small were then used to make further loans. This S&P downgraded the federal debt, OWDA had process was repeated, and eventually – usually • Assumption 1: Any improvement to water a bond issue for $250 million, which had the communities to 3 years after the completion of construction – and/or wastewater systems is contingent on highest oversubscription ever. As a result the repayments start to flow in. Five months later, being granted appropriate Environmental price was lowered, and in less than 2 hours work with. principal and interest are returned to the bond Protection Agency permits, or drinking about $250 million worth of bonds were holders, off which will be surplus funds and water project plan approval. sold. The demand for bonds outstrips supply. The problem comes not from the economic • Assumption 2: The governing body downturn but from the lack of political will to receiving the loans should be under the raise tariffs. OWDA finance approach management or leadership of qualified personnel, such as a civil engineer, as we do not second-guess them from an ethical or technical perspective. Funding • Assumption 3: The body receiving the loan will eventually pay that loan back, and to date there have been only 10 defaults in Bond Proceeds Loans to Communities the history of the programme. Steve Grossman Where the money is going than $6.8 billion of revenue bonds. Standard of the Environmental Financial Advisory Bonds Structured and Marketed Loans Pledged to Bond Issue Steve Grossman is the Executive Director In Ohio, $11 billion in loans have been made. of the Ohio Water Development Authority & Poors and Moodys rate the three major Board to the United States Environmental Federal government pressure has dictated (OWDA). As Director, he oversees the OWDA bond series AAA. Prior to joining Protection Agency. He graduated Phi that most of this has historically been directed financing to local governments for projects OWDA in 1988, Mr Grossman was the Beta Kappa with a Bachelor’s Degree in towards wastewater, and in recent years related to water pollution control, water Assistant Director of the Ohio Environmental Economics from Lehigh University and Repayments of Loans there has been a push – with consequent supplies, solid waste and brownfields Protection Agency where he was responsible a Master’s Degree in Management from Surplus Funds from Communities financial investment – to separate combined for overall agency planning, budgeting the Sloan School of Management at the sewer overflows. A recent loan of $285 million remediation. In his 23 years with the was made to the City of Columbus for the Authority, Mr Grossman has presided over and administration. Mr Grossman is a past Massachusetts Institute of Technology. Principal & Interest to Bond Holders Repayment construction of a tunnel from one part of the awarding approximately $8.3 billion of loans. President of the Council of Infrastructure city to a treatment plant 5 miles away. He also has overseen the issuance of more Financing Authorities and a past member Source: Ohio Water Development Authority

178 Brave new world // Will water and money meet? Steve Grossman // Financial sustainability in serving all communities: The Ohio model 179 ROME Global water summit 2012 Brave new world Will water and money meet?

Mobilising domestic finance in emerging economies

The objective is to finance small to medium particularly if reviews and studies are Introduction commercial banks. This provides them with sized infrastructure projects, with a project conducted by international consultants The Local Finance Initiative programme an opportunity to become experienced range from as high as $30 million to as low (this is why we try to use local consultants targets poor countries, with the aim of with the assets before they are asked to re- as about $100,000, as these projects have where possible). mobilising domestic savings. Despite finance on a longer-term basis. the potential to make a significant difference • Despite having long-term predictable the importance of official development Some of the structuring effort will be reduced in small economies. However, at this latter liabilities, pension funds in many poorer assistance to these countries, the resources for the banks, as the United Nations Capital end of the spectrum it is difficult to fund countries tend to focus their investments available from this source are not sufficient. Development Fund (UNCDF) and the Global projects that have adequate economics, and on a small number of equities in-country, Because governments do not have the Clearinghouse for Development Finance financing has been problematic historically. and to purchase real estate assets, which money, alternative sources of funding are (GlobalDF) will provide transaction support The problems arise from 5 factors: reduce the funds available for potential required. in the form of free investment banking • When using local currency, in most infrastructure projects. Our programme attempts to mobilise services, helping to put projects together. developing countries the banks provide funds available that exist in these countries’ The combination of credit support and only short-term loans (whereas the return banking systems and in their rapidly growing Sources and types of financing longer tenors should lower the overall cost of on investment time horizons on water pension funds. The programme may finance projects financing. Importantly, by providing financing infrastructure projects tends to be quite sponsored by any type of organisation, in local currency, foreign exchange risk is The programme has been running for 18 long). including indigenous firms, international eliminated, which has historically been a months, with operations in Uganda and • Developing country banks lack firms, local government (although they problem in every infrastructure sector and in Tanzania. Following UN approval to make experience in credit analysis on project would probably contribute land or ideas, water in particular. the programme global, we will now start financing and infrastructure. rather than being involved in majority targeting additional countries, most of which • As project financing is extremely labour ownership), or community organisations. present very challenging conditions. Scale, resources and scope intensive, regardless of project size, there Project financing takes two forms: The first is the arrangement of financing individually, In every country in which this programme is a disincentive for banks to invest their operates there is a UNCDF office, as well as Types of projects targeted time and personnel in smaller projects. and the second is the creation of portfolios of projects, with the latter the preferred further UN staff. There are currently 5 people The programme is designed for traditional • The expense associated with due approach. Unlike other examples of pool in our group, and as the programme scales infrastructure, including water, power, diligence assessments, engineering financings, our programme is not devoted up to the global level, there will be further transport-related projects, and agricultural reviews, and market studies on demand to one sector: Our approach has been to put hiring of personnel. We also work with the local processing, the last of which is important in and availability of inputs – required for this together a portfolio of projects to take to the government. For example, in Uganda there many poor countries with a heavy reliance type of financing – is often prohibitively bank market. The reason for this approach is are approximately 12 field people in the local on the agricultural sector. high for smaller infrastructure projects, to ensure sufficient volume for the project to government who are working on this, plus the be financed. staff in the district governments. Audience response: Is the availability of finance the principle obstacle to low income The programme is implemented in 2 phases: “Changing the culture” is an essential communities getting access to water resources? aspect of long-term project sustainability. • Phase 1: Working with banks and Our programme intends to train bank and credit support provided by international government officials, so that 4 or 5 years after development partners. The objective is completion, there is a cadre of people left to have 40–50% credit support, so that behind that are able to work without our input. Yes: 41.4% No: 58.6% the risk-return profile of the transaction Bob Sheppard improves from the standpoint of local Question for the audience: Do you think the availability of financing mechanisms to Is the availability of banks, providing an incentive to provide Bob Sheppard serves as Senior Advisor to the Global Clearinghouse for Development low income communities in small towns is the nance the principle loans with longer tenor than they would Finance, a non-profit consulting firm that is working with the United Nations Capital principal obstacle to these people getting access obstacle? do in typical circumstances. Development Programme to implement a new approach to financing small infrastructure to water resources? • Phase 2: Re-financing of portfolios projects in developing countries. An attorney and former investment banker, he with local institutional investors, such as Or is it something else, such as people’s lack of previously served as Co-Head of the Global Project Finance Group at Bank of America. Mr pension funds. The advantage of many willingness to pay for water? Sheppard also teaches a course on international project finance in the MBA programme of these local funds is that, unlike U.S. Chair: With 59% of the vote, the audience says of the Moore School of Business at the University of South Carolina, and in 2010–2011 institutional investors, they will come in no (see figure bottom left). So tariff reforms are was a Visiting Scholar at . Source: GWI to transactions initially lending alongside necessary before start-up is possible. 180 Brave new world // Will water and money meet? Bob Sheppard // Mobilising domestic finance in emerging economies 181 ROME Global water summit 2012 Brave new world Will water and money meet?

Identifying growth opportunities in the water sector: The investor’s perspective Introduction technologies, many of which might not have found their way into public companies, is I cover the multi-industry and electrical coming from private equity investors. equipment group, otherwise known as conglomerates. This includes some of the most complicated companies that are building Company investment choices out important water business, including GE, While the utilities represent an important Danaher, Pentair, and Xylem. These companies customer base for the equipment build pumps, valves, operating systems, test manufacturers, there is a blurring of the The most equipment and backbone infrastructure that is distinction in that some utilities are building the essence of the water industry. I am also an systems themselves, such as Veolia’s Advisor on the United Nations Environmental desalination systems. important Program Finance Initiative. Our whole investment thesis is to target thing is to those companies that are focused on the Where the money is going fastest growing parts of water: water reuse, identify where The most important thing is to identify where desalination, and most recently in the treatment the money is going to see which markets of ballast water. A handful of companies fall into are growing the fastest. While providing this category, including both Hyflux and Pentair. the money is infrastructure in these markets represents a Nobody is going to buy the stock of these predictable business opportunity, the fastest going, to see companies just because of their water business growth in emerging markets lies in equipment – in GE’s case, water represents just 2% of their and service provision – the issue remains of revenues. What investors should be looking which markets who is going to pay for it. for is consistent growth out of an array of The companies I follow are involved in a variety businesses, in particular where companies are are growing of areas. One area is fracking, where companies providing the most proprietary technology and are making the equipment and providing the the most technical know-how. the fastest. services. Another is food and beverage, which Start at the top in elements of desalination, Deane Dray is one of the fastest growing markets related to whether it’s reverse osmosis or forward osmosis, Deane Dray has more than 25 years of investment experience, including 15 years covering water and filtration. Another is desalination. and then cascade down to elements in water the industrial sector. Mr Dray joined CIRA in June 2010 as a Director and sector leader And the investment is not just in public reuse. At the very lowest levels you have the of the industrials group, covering the Multi-Industry & Electrical Equipment sector. Prior companies – an important part of the basic plumbing infrastructure, such as pipes. to joining CIRA, Mr Dray spent 11 years as a senior analyst with Goldman Sachs Equity development of new ideas and new Water rights are also a fascinating sector. Research covering this sector. Additionally, Mr Dray serves as an advisor to the United Nations Environment Programme Finance Initiative (UNEP FI), which assists developing countries with gaining better access to drinking water and wastewater treatment resources. He has published extensively on the global water sector and has hosted The fastest growth in emerging markets lies in equipment investor conferences on this megatrend topic. Mr Dray received his BA from Brown University with honours and completed his MBA at New York University. He is also a CFA and service provision – the issue remains of who is going charterholder and a member of the New York Society of Securities Analysts. to pay for it. 182 Brave new world // Will water and money meet? Deane Dray // Identifying growth opportunities in the water sector: The investor’s perspective 183 ROME Global water summit 2012 Brave new world Will water and money meet?

Questions from the Chair

Chair: What do you think the biggest obstacles treatment plant has been running successfully are to obtaining financing and funding for for the last 8 years on a PPP basis and where water development projects? the tariffs are affordable and so the public have been paying their bills. Bob Sheppard: The financial crisis has meant that many banks that were strong in project Deane Dray: We have to put a market price on finance are now out of the business. The result water – this has to be step 1. Until such time as has been a rotation of leadership: The U.S. and there is marker-based pricing, there will never more recently Europe has been declining, be an incentive to conserve, and the utilities with non-OECD banks becoming increasingly will never have the full capital to make the important. investments required. Although the crisis has been less significant for Chair: If raising tariffs is the answer but is many emerging economies – where obtaining politically difficult, what is going to make that finance was always problematic – the removal change? How can the situation be changed from the market of many financial institutions so that tariff increases may be implemented has created new problems, and finding a successfully? replacement for them is a huge barrier. One potential way of overcoming lack of Steve Grossman: The lack of education and political will for tariff reform would be to set up poor public awareness of the need to pay for an external, independent public water regulator water means that it will be difficult politically that stipulates the minimum level of investment for officials in countries like the United States and service required. This would take the heat – in which consumers currently pay only a off the politicians, as they wouldn’t be perceived fifth of that paid by northern Europeans – to to be pushing up the price of tariffs. implement tariff reform, until such time as there Do you think that promoting an external is a widespread failure of infrastructure. regulator in the public sector as they have in the Rajiv Mittal: The belief that somebody else private sector would be one way of changing has to pay for water has resulted in it being that trend? the most underpriced commodity, with a Grossman: The problem comes when deciding consequent lack of incentive to conserve. More how to select that person – it probably has to communication and education is required so be through a political process. that charging – at least for operational costs in developing countries – can be made politically Chair: In America there is the Public Utilities acceptable. Commission, and it must be possible for it to regulate the public utilities, as they regulate This includes bringing in the poorest the private ones. The big problem in the non- communities, where projects can be built by regulated public utility arena is that utilities the private sector but still funded partly by actively invest as little as they can, because they the government (up to 40% of capital costs), are worried about raising the rates. Coming up which can make tariffs affordable and so with an independent regulator is a conceivable increase willingness to pay. A good example and potentially viable way of dealing with this. can be found in Chennai, where a wastewater

184 Brave new world // Will water and money meet? Questions from the Chair 185 ROME Global water summit 2012 Brave new world Company directory

Abengoa / Abeima Acciona Abengoa (MCE: ABG) is an international company • Abengoa Water is leading Abengoa’s water ACCIONA Agua provides tailor made water solutions in Chile, Argelia, Brazil and Dominican Republic. In that applies innovative technology solutions for business. It invests in and manages its own assets, which contribute to sustainable development in Mexico, we have under construction the world´s sustainability in the energy and environment sectors, while promoting and developing new products the water sector through focusing on cutting edge biggest WWTP , as part of the consortium formed by generating energy from the sun, producing biofuels, and operating proprietary and third-party innovation in the design, construction and operation Mexicans and international companies. desalinating sea water and recycling industrial waste. advanced technology plants. Abengoa Water is of water treatment plants in addition to advances in Our core business activities are: With a turnover that exceeds 7 billion euros, its also concentrating all its resources on R&D by membrane technology. business is focused on engineering and construction, dedicating a significant amount on investigation • Design, construction and commissioning We are one of the world´s leading companies in RO concession-type infrastructures and industrial projects. desalination and water and wastewater treatment, • Operation and maintenance production. • Abeima is responsible for the design, engineering, and our capability is demonstrated by 70 reference • Integrated water resources management and construction of hydraulic & environmental Abengoa vows to strengthen its commitment with the projects in the desalination sector (with a total In the following sectors: water business. With more than 60 year experience, infrastructures, desalination and water or capacity of 1.9 million MLD), and in excess of 400 Abengoa, through its subsidiaries Abengoa Water waste treatment plants, and other works for water, wastewater and sludge treatment projects, • Reverse osmosis (RO) desalination and Abeima (resulting from Befesa Agua’s split), has environmental improvement. positioning us as the market leader in the construction • Drinking water been recognised by prestigious organisations and This know-how enables Abengoa to bring viable of water treatment plants in Spain, Italy and Portugal. • Wastewater won numerous awards in the last few years and has solutions on marked value-added projects which Around the world, ACCIONA Agua is building one of been ranked among the Top 10 leading desalination require specific knowledge while securing a return the biggest desalination plants (300 MLD) in Australia • Reuse companies. on investment. It has the capacity to desalinate more (Adelaide). We also have projects under construction For more information: www.acciona-agua.com than 1.3 million cubic meters of water per day and has managed and built projects in Latin America, Spain, North of Africa, India and China among others.

aqualia aqualia is the water management subsidiary of the industrial water uses. It also works in 17 countries environmental services and infrastructure company throughout Europe, America, Africa and Asia, including AECOM FCC, one of the main citizen services companies in Spain, Italy, the Czech Republic, Portugal, Algeria, AECOM’s water professionals provide a high level of range of markets, including transportation, facilities, Europe, and operating in more than 50 countries. Egypt, China and Mexico. In the past few months, aqualia has been awarded with new contracts in Chile, expertise in water and wastewater treatment, water environmental, energy, water and government. With aqualia specialises in managing all water-related KSA and Abu Dhabi, which strengthens its international resources and community infrastructure serving approximately 45,000 employees around the world, activities and is one of the few companies in the world expansion and diversification. The company currently local, municipal and federal government clients to AECOM is a leader in all of the key markets that it that is capable of providing advanced solutions for serves more than 28 million people in around 1,100 address the world’s need for clean water. Through serves. We provide a blend of global reach, local water usages, including domestic, agricultural and cities. these disciplines, our professionals offer integrated knowledge, innovation and technical excellence in industrial purposes. A global market vision, with a services for total project delivery, covering everything delivering solutions that create, enhance and sustain strong local commitment, has turned aqualia into a aqualia’s efforts have been recognised internationally, from initial environmental planning studies to detailed the world’s built, natural and social environments. A world benchmark company in the management of the being chosen as the Water Company of the Year, design, construction management, and operations and Fortune 500 company, AECOM serves clients in more entire water cycle. 2007, by Global Water Intelligence, and awarded with maintenance training. than 130 countries and has annual revenue in excess of “Customer Service Leader of the Year”, by Frost & Sullivan aqualia’s businesses are focused on three key areas: $8.1 billion during the 12 months ended December 31, (2007); and Best of European Business, by Roland Berger We are a global provider of professional, technical the management of public water services, hydraulic 2011. More information on AECOM and its services can (2006). In 2010, GWI already named the New Cairo and management support services to a broad infrastructure, and comprehensive solutions for be found at www.aecom.com. WWTP financial close “Water Deal of the Year”.

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Aqualyng Danfoss Aqualyng- a leading player in the international technologies. To this end, the company’s Project Danfoss A/S is one of the largest industrial companies The energy recovery device, called iSave, is an isobaric desalination market Development team targets sales of product in Denmark, with more than 25,000 employees energy recovery device that is fully integrated with its water produced utilising the company’s patented worldwide, production on four continents and sales in own positive displacement booster pump and electric Aqualyng is a global leader in the international technologies, via BOO (Build, Own, and Operate) almost every country on the planet. Danfoss is world motor. The iSave provides constant flow despite desalination market. Our spectrum of successful, contractual structures, under long term water purchase leader in the development and production of a wide variations in feedwater salinity and temperature. Like state-of-the-art products & services deliver fresh water agreements with creditworthy off-takers. The team’s range of mechanical and electronic products and APP pumps, iSave devices are characterised by having – whenever and wherever it is needed. In the relatively geographical focus spans all five continents, targeting controls. some of the highest efficiencies in the market. The short span of time since 1996, we have garnered an opportunities to form consortia with equity partners and small and compact devices are easy to install and excellent industry reputation for delivering desalination Danfoss RO Solutions, part of the Danfoss Group, has a contractors best suited for a given prospect. operate, which reduces the need for trained operators. plants for production of all qualities of water. clear mission: to develop, manufacture and market the Whereas the company had traditionally been regarded best high pressure pumps and energy recovery devices The pumps and energy recovery devices are sold for As a global water solutions provider addressing diverse as a provider of high quality desalination equipment for the reverse osmosis (RO) market. both land-based, marine and off-shore use as well as water needs for a variety of concerns, the company is employing seawater reverse osmosis technology, mobile and containerised applications. All products are carving a unique trail in the desalination industry. With The high pressure pumps, called APP pumps, the company’s renewed focus is to sell not just the made in Duplex and Super-Duplex materials, making over 15 years experience in the desalination industry, we are characterised by having some of the highest equipment, but also the product water. Having them the perfect choice for high salinity sea water have the requisite expertise in designing and operating efficiencies in the market. The axial piston design assembled a committed in-house technical team reverse osmosis applications. plants across 3 continents. Aqualyng’s reverse osmosis- results in constant flow regardless of pressure of seasoned veterans, with focus on technological based desalination plant solutions have increased variations. The pumps are reliable, easy to maintain and Danfoss RO Solutions offers an extensive range of advancement and R&D as well as plant design and efficiencies and reduced costly assembly times for can boast of having the market’s smallest footprint, pumps and energy recovery devices – a range which operations, Aqualyng is able to leverage its superior projects ranging from Europe, the Gulf Countries, which makes the pumps suitable for systems where is continuously being expanded and which today has understanding of the core technology to devise Northern and Southern Africa to China. component size really matters. units in operation in more than 15,000 RO systems customised solutions around each project’s unique set throughout the world. By using the most advanced engineering know-how of requirements. The range of APP pumps has recently been extended in the industry, Aqualyng is solving the scarcity of with 3 new sizes, so it now covers pumps from 0.6 to The APP pumps and iSave energy recovery devices are Following construction, during the commercial freshwater in arid regions and feeding the growth of 38 m³/h. ideal partners. With its range of high pressure pumps operations period, Aqualyng’s operations and large industry. Our modular desalination water systems and energy recovery devices, Danfoss RO Solutions maintenance group provides technical services As something new, APP pumps are now also available bring fresh water to lives everywhere… provides RO customers with a comprehensive portfolio including inventory management, maintenance in off-shore versions for the oil and gas industry – of energy saving powerhouses – all from the same planning, and long term parts & services supply to the these pumps are designed according to the American Our focus on Water Sales reliable supplier. company’s operating fleet. Centralising the operations Petroleum Institute Standard – API 674. Aqualyng actively seeks to identify and pursue management function across the fleet allows for better For more information, visit www.ro-solutions.com opportunities to invest shareholder capital in efficiency achieved from parts pooling and improved and www.isave.danfoss.com the company’s own equipment and proprietary inventory management.

CH2M HILL Doosan As a global leader in full-service engineering, Conveyance and Tunneling Services (including water Doosan Heavy Industries & Construction has been our R&D Centers in Changwon, Tampa, and Dubai, procurement, construction, and operations, CH2M storage and transmission infrastructure) • Desalination one of the leading providers of desalination solutions enables us to deliver reliable and cost-effective turnkey HILL provides water, wastewater and water resource and Reuse • Program Management • Master Planning since commissioning our first turnkey project in 1989. solutions with the shortest lead times in the industry services to clients worldwide. With $6.4 billion in • Management Consulting • Operations and In addition to the 310 million imperial gallons per for projects of various scales. revenue and 23,000 employees worldwide, CH2M HILL Maintenance • Asset Management • EPC-Contractor day (MIGD) of capacity currently under construction, Doosan’s wide spectrum of products and services, delivers innovative, practical, sustainable solutions— our plants are producing 1,300 MIGD of water for use Full-Service Global Resources: which include engineering, procurement, construction helping clients develop and manage infrastructure and by more than 19 million people in communities and Australia/New Zealand • South East Asia and India • and operation & maintenance for desalination and facilities that improve efficiency, safety, and quality of industries around the globe. Northern Asia • Middle East/North Africa • Central/ water treatment plants and systems, are actively life. Working with our clients, we deliver customised Eastern Europe • Western Europe • South America • Our proven portfolio of multi-stage flash (MSF), multi- marketed by our regional offices in the Americas, the solutions in a flexible and responsive manner. Northern Latin America effect distillation (MED), and reverse osmosis (RO) Middle East, and Southeast Asia along with our U.S. Areas of Expertise: technologies, which are continuously developed by subsidiary Doosan Hydro Technology. For more information, visit: www.ch2mhill.com, Drinking Water • Wastewater • Water Resources www.ch2mhillblogs.com/water, twitter.com/ and Ecosystem Management • Climate Change ch2mhill and facebook.com/ch2mhill Risk Assessment and Water System Adaptation •

188 Brave new world Company directory 189 ROME Global water summit 2012 Brave new world Company directory

Foz do Brasil Hitachi Taking care of water, earth and air are fundamental FGTS (Investment Fund of the Government Severance The Hitachi group of companies is a Japanese For many years now, the Hitachi group has supplied actions in order to provide better living conditions for Indemnity Fund) of the Brazilian worker. The company conglomerate headquartered in Tokyo, Japan. The not only Japan, but also over 40 countries worldwide its population. This is what Foz proposes to achieve. Foz operates, invests and participates as partner in public Hitachi group consists of over 900 subsidiaries. There with a wide range of products and systems, from EPC do Brasil aims to invest in and operate environmental projects that ensure the improvement of quality of life are eleven business units with total revenues of \9,315 for water purification and sewage treatment facilities, projects and provide services which focus on three of millions of Brazilians and helps in the development billion in fiscal 2010. water treatment systems, water conveying pumps, segments: Water and Sewer – public water and sewage of companies that have sustainability as the basis of information and control systems, to billing systems and Hitachi is selectively channelling its business resources concessions; Industrial Operations –utilities; and Waste their actions. other back office systems. – diagnosis and remediation of contaminated areas, into the Social Innovation Business, which supplies Foz´s mission is to provide environmental solutions environmental monitoring and energy recovery. advanced social infrastructure linked by information From now on, we will not stop at Japan, but further for sustainable development and to improve quality technology (IT). strengthen planning participation in the operation Foz is part of the Odebrecht Group, one of the Brazilian of life, combining managerial skills, investments and and management stages, as well as the EPC business In this special feature, we introduce several core largest business groups, with participation of the FI advanced technology. in the fields of recycled water, seawater desalination, activities within the Social Innovation Business industrial water and wastewater, where growth including Information and Telecommunication is expected in the future, in conjunction with the Systems, Power Systems, Railway Systems and Water water supply and sewage fields on the global water Environment Solutions, as well as the supporting environment market, which includes China, Southeast Materials and Key Devices. Asia, India, the Middle and Near East. GS E&C GS E&C has established its status as a top-ranked Specially, we have responding to environmental issues company domestically since its foundation in 1969 including Sewage Treatment Plant, Water Treatment by achieving tremendous growth in the fields Plant etc, and expanding environmental Project. Also of architecture, civil engineering, housing, plant, we have recently taken over Spanish plant owner/ environment and power plant. Amid an adverse operator Inima. Inima is ranked within the top 10 in the business climate, we pursued various ways to achieve water treatment industry, which began as a pioneer both growth and financial soundness; after all, we building the first desalination plant in the world since Hyflux attained solid growth, with $14.5 billion in new orders its establishment in 1957. This acquisition will help GS and $8.0 billion in sales in 2011. Through continuous E&C expand its markets to the Europe, Africa, Central Founded in 1989, Hyflux has successfully transformed component manufacturing, process engineering, development of its human resource, acquisition of and South America over the Middle East and North itself into a global fully-integrated water solutions engineering, procurement and construction, to technologies, determined challenges and practices, we Africa. We can also expand the market coverage by company and one of the top desalination plant operations and maintenance, in addition to arranging have set forth the stepping stones to leap as a Global maximising its synergy utilising technology, track suppliers in the world. for project financing of large-scale municipal water Leading Water Company. Now, we are ready to take records, experiences and business networks of Inima. projects. next step forward on to new challenges. Hyflux offers sustainable solutions in the areas of membrane-based desalination, water recycling, At the core of Hyflux’s business is its membrane wastewater treatment including membrane bioreactor innovation that is focused on the development of technology, and potable water treatment. Its projects membranes, membrane applications, and the design and operations span across Southeast Asia, China, and development of membrane-based plants to India, Europe, the Middle East and North Africa, and deliver solutions for a wide range of applications include landmark projects such as the world’s largest in water treatment and industrial manufacturing Hydration Technology Innovations seawater reverse osmosis desalination plant in Magtaa, processes. Algeria. HTI manufactures proprietary Forward Osmosis (FO) HTI’s membranes are commercially used to treat a Through its projects across the world, Hyflux has left membrane material that allows osmosis while using a variety of Industrial Wastewaters and are in a suite of Hyflux is distinctive in its ability to address challenges an indelible imprint on the communities that it serves, proprietary osmotic agent to leave behind virtually all FO retail products used for personal hydration, disaster at every point of the entire value chain of the water driven by its commitment to deliver water that is clean, contaminants. FO can filter water without the need for relief and military use industry – from R&D in membrane technology, safe and affordable. high pumping pressure. Thus, FO filtration systems use For more information visit www.htiwater.com little energy, are constructed from low cost materials and are capable of filtering highly contaminated water, even those containing high solid concentrations, without plugging.

190 Brave new world Company directory 191 ROME Global water summit 2012 Brave new world Company directory

IDE Technologies Ltd Winner of “Desalination Company of the Year” GWI built and currently operates most of the world’s mega- Award 2011, IDE specialises in the development, sized SWRO, as well as some of the largest MED and MVC engineering, construction and operation of enhanced desalination plants, providing high-quality water for desalination facilities and industrial wastewater various industries, mines, refineries and power stations, as treatment solutions, as well as snowmaking and well as potable water. IDE’s proven track record spans 400 refrigeration solutions. In addition, IDE offers the IDE plants, 40 countries and 4 decades. PROGREENTM product line – a chemical-free, compact, Sorek Project Shortlisted for GWI 2011 “Water Interapp cost-effective reverse osmosis water production Deal of the Year” system. The IDE PROGREENTM system is able to deliver This project’s unique financing package resulted InterApp, part of Industrial Valve Solutions from Leading organisations benefit from InterApp’s affordable, sustainable, clean water for a wide variety of in significant savings in terms of debt service and the AVK Group: Understanding Water Treatment experience in large scale projects uses, including agriculture, industrial, drinking water and minimised refinancing risk. Industries. Worldwide leading companies such as Degrémont, Veolia, Boiler Feed Water (BFW). With more than 40 years of experience, InterApp Hyflux etc. benefit from InterApp’s longtime experience, Sorek will be one of the largest and most economical With thermal and membrane technologies recognised develops, manufactures, delivers and implements their expertise in engineering and manufacturing as well SWRO installations ever built, using innovative technology as the most advanced in the world, IDE has designed, state-of-the-art flow control solutions for various as their project management capabilities in the water and establishing an onsite private power station. industries and applications around the world. treatment industries. Thanks to a sophisticated modular Headquartered in Switzerland, the company just-in-time manufacturing system as well as the AVK operates their own research and development as Group’s far reaching network, InterApp is capable of K-water well as their manufacturing, assembly and testing supplying their products individually adapted to customer specifications to any location in the world. K-water was founded in 1967 as a state-owned We control 2.2 billion m³ of flood water a year and facilities in Switzerland, Italy and Spain. corporation which is responsible for water resources generate 1,463 MW’s of hydropower energy. Comprehensive solutions from one single source A product portfolio for the most demanding development and management in the Republic of As a member of Denmark based AVK Group, InterApp requirements K-water also supplies bulk water to local governments Korea. offers one of the most comprehensive range of InterApp’s product portfolio includes valves with and industries through 33 multi-regional Water Supply products and solutions in the industry. Working with diameters from DN 10 to DN 3,200. InterApp offers the K-water comprises 1 Main Headquarters, 8 regional Systems and its total capacity is 17.7 million m³ of global distribution channels, together within the group following products: Rubber and Plastomer lined centric headquarters, 65 branch offices nationwide and 9 water a day serving 20 million people and occupying and creating synergies, the affiliated group members butterfly valves, double and triple eccentric butterfly overseas branch offices. 4,416 employees are working 45.1% of nation’s total treated water supply capacity. also benefit from a global organisation. With sales and valves, damper valves, ball valves, globe and diaphragm for K-water. The company’s total assets are valued at 18 municipal Water Treatment Plants are under the distribution organisations in 50 countries, InterApp and valves, gate and knife gate valves, check valves, strainers, 16.8 billion USD and yearly revenue comes up 5.4 operation of K-water through the concession contract. the AVK group supplies its products and services to air valves, flanges, flange adaptors, dismantling joints, billion USD in 2011 fiscal year. We’re also engaged in the clean power supply over 80 countries around the world. By tailoring perfect couplings, fittings hydrants, actuators and accessories. K-water provides 11 billion m³ of source water a year business, 4 major river development projects, and packages with products and know-how from across the InterApp solutions are ideal for the following which is 43% of the total amount of source water overseas projects including Patrind Hydropower entire group, InterApp clients benefit from seamlessly applications: supplied in Korea through 16 multi-purpose dams. (150 MW) in Pakistan. integrated solutions through one single source. • Desalination Water treatment as one of InterApp’s major fields of • Drinking water treatment expertise • Sewage treatment Miahona While InterApp and the AVK group companies supply their products and services to a variety of industries such • Industrial water treatment Miahona provides management and concession Miahona has four subsidiaries namely: 1) CDM Arabia as power generation, chemical process and life sciences, • High purity water (semiconductor, solar) services for urban water utilities including water which is a joint venture between Miahona and water treatment has always been one of their major treatment, water supply system, wastewater collection CDM International of USA providing engineering • District cooling and heating systems fields of expertise. InterApp is specialised in desalination, and treatment facilities on BOO/BOT/O&M basis. consultancy services in various water & wastewater • HVAC and swimming pools sewage treatment, drinking water, industrial water As a leading holding company, Miahona also offers related areas, 2) Jeddah Water Services Company a treatment and many other applications. • and many applications in the chemical and life urban utility engineering consultation in water joint venture with SUEZ ENVIRONMENT providing science industries. and wastewater disciplines in Saudi Arabia and management expertise for water supply and MENA region. Major Business Areas of Miahona & wastewater collection services in Jeddah City, Subsidiaries include Urban Water Management, O&M 3) Jazzirah Environment which specialises in the and Concessions, Domestic and Industrial Water & operation and maintenance of industrial wastewater Wastewater Treatment & Reuse, Brackish Groundwater treatment plants in industrial cities, 4) Ranhill Arabia a Development, Treatment, O&M and Distribution, partnership with Ranhill Utilities of Malaysia specialises Consulting Engineering for different disciplines for in leakage detection, control and repair in order to water and wastewater sectors in addition to Leakage reduce Non-Revenue Water. For more information, visit Detection & Repair. www.miahona.com

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Pentair Pentair is a global diversified industrial company and experience in water purification, ranging from headquartered in Minneapolis, Minnesota. Its Water producing potable water to treating wastewater and Group is a global leader in providing innovative the pre-treatment of seawater, but also in the food, products and systems used worldwide in the beverage and pharmaceutical industries. Worldwide, movement, treatment, storage and enjoyment of Pentair X-Flow has an extensive network of professional water. Pentair’s Technical Products Group is a leader sales offices, service centers, agents and distributors in the global enclosures and thermal management that work together to make Pentair X-Flow leading in Purolite markets, designing and manufacturing thermal purification. Together with the extensive application management products and standard, modified, and know-how for projects of all sizes, this guarantees the Resins for Ion Exchange, Catalysis, Adsorption • Macronet™ MN series of unique adsorbents for custom enclosures that protect sensitive electronics best available water purification solutions. Proof can and Specialty Applications organic molecule removal and recovery and the people that use them. With 2011 revenues be found worldwide: operational solutions among Purolite, a privately owned company, established in • Purosorb™ PAD range of specialty adsorbents for of $3.5 billion, Pentair employs over 15,000 people the largest in capacity of their kind, realised by leading 1981 has grown to become a leading supplier of resins food and pharmaceuticals worldwide. principals in many different areas in the industry. for ion exchange, catalyst, adsorbent and specialty • Purolite® MB series of ready-made, mixed-bed Company profile Pentair X-Flow: For additional information, visit the website: applications worldwide. resins for general industry demineralisation X-Flow BV, a Pentair company, has broad know- www.x-flow.com Purolite continues to set new standards of • Purolite® S series of chelating resins for metals how and a proud history in the development and removal and recovery Contact details performance by continuing to expand manufacturing application of innovative membrane filtration Pentair X-Flow capacity, improve product quality and drive innovation • Purolite® SST™ series high regeneration efficiency technologies. The company develops and supplies Marssteden 50 through investment in new equipment, expert staff resins membrane technology to global municipal and 7547 TC Enschede, the Netherlands and upgraded facilities. Purolite recently announced • Purolite® A and C series of Anion and Cation resins industrial markets. The product portfolio contains Tel. +31 53 4287000, Fax +31 53 4287001 a new R&D expansion in Romania incorporating for general softening and demineralisation, or numerous standard membranes, modules and units for E [email protected] greatly expanded facilities, as well as improved contaminant removal or recovery filtration and purification processes. Throughout the R&D Laboratories in , UK, USA, and China and I www.x-flow.com Product applications are supported by a team of years Pentair X-Flow has especially gained expertise additional manufacturing capacity in the USA, Romania over 200 technical professionals located close to our and China. customers. These world class operations reinforce Purolite’s Purolite’s products, services and technology are widely Suez Environnement commitment and ability to quickly custom used in municipal and potable water treatment; configure resin solutions that fit individual customer Natural resources are not infinite. Each day, SUEZ treatment services for 63 million people, and collects pharmaceutical; electronics; chemical and refining requirements and sets Purolite apart from the ENVIRONNEMENT and its subsidiaries deal with the waste produced by close to 57 million people. industries; catalysis: food and beverage: metals competition. the challenge of protecting resources by providing SUEZ ENVIRONNEMENT has 80,410 employees and, extraction; electroplating; fossil and nuclear power innovative solutions to industry and to millions of with its presence on five continents, is a world leader Purolite was recently awarded the title of “Distinction” generation; Life Sciences and a host of other industries. people. SUEZ ENVIRONNEMENT supplies drinking exclusively dedicated to water and waste management in the category of Industrial Water Project in the 2012 Just Ask Purolite ...... water to 91 million people, provides wastewater services. Global Water Awards where Purolite’ s SST™ , Shallow Shell Technology, was selected for the Cartagena Purolite Refinery Demineralisation Plant in Spain . 150 Monument Road Highlights of the Company’s current product Swing Corporation Bala Cynwyd portfolio include: In 1931, our company has been established as a pump From engineering to operation and maintenance, we Pa 19004 • Purolite® NRW high purity resins for the fossil and manufacturer in Japan. Since then, we have been could provide comprehensive technical solutions in nuclear power industry Tel: 1 800 343 1500 or 1 610 668 9090 supporting people’s lives and the environment through the field of water related business such as Municipal our advanced water related technologies. In 2010, we Water Treatment, Municipal Wastewater Treatment, • UltraClean™ UCW range of ultra-pure water resins email: [email protected] have started a new operation by Ebara Corporation, Industrial Water and Wastewater Treatment, Chemicals for the microelectronics industry Mitsubishi Corporation and JGC Corporation, which is for Water Treatment. Website: www.purolite.com aimed at expanding oversea business. Tokyo, JAPAN (Head Office) / Beijing and Shanghai, We are proud of our leading-edge water and P.R.CHINA / Kuala Lumpur, MALAYSIA / Jakarta, environment technologies, developed in Japan over INDONESIA / Riyadh, SAUDI ARABIA many decades. Our company name, SWING stands for Find us online: “Sustainable Water” + “ Ing”, and we wish to be a best http://www.swing-w.com/en/index.html solution provider by integrating various advanced technologies.

194 Brave new world Company directory 195 ROME Global water summit 2012 Brave new world Company directory

TaKaDu Veolia Water TaKaDu is a pioneer in Water Network Monitoring, TaKaDu gives the utility comprehensive control over Veolia Water, the water division of Veolia design/build capabilities meet the global needs of providing water utilities worldwide real-time alerts on the distribution network. The service is easy to roll-out, Environnement, is the world leader in water and municipalities and industry. Veolia helps its customers inefficiencies, water loss, faults and network anomalies requiring no network changes, no additional devices or wastewater treatment. Specialised in outsourcing to support both environmental and economic based on existing data from meters and sensors capital expenditure. services for municipal authorities, as well as industrial challenges by securing their performances, offering already deployed in the network. and services companies, it is also one of the world’s them ongoing improvement and synergies, delivering Leading water utilities across Europe, Asia, Australia major designers of technological solutions and solutions and expertise to optimise the recovering TaKaDu’s Software-as-a-Service solution uses state- and Latin America are using TaKaDu for reducing constructor of water and wastewater treatment recovery of natural resources from their water and of-the-art statistical and mathematical algorithms to water loss and increasing their efficiency. TakaDu is facilities through its subsidiary, Veolia Water Solutions & wastewater and also by providing innovative and accurately identify a wide range of distribution network a Technology Pioneer 2011, Technologies. sustainable carbon and water footprint programs. problems as they occur, and enable the utility to and was recently named “Cleantech Company of the This reflects Veolia’s commitment to bring ever more respond quickly and efficiently. Year: Europe & Israel” by the Cleantech Group and the From small scale pure water units through to turnkey service, value and responsibility for the benefits of its Guardian. water and wastewater treatment plants, Veolia’s range clients. of differentiating technologies, associated services and TALIS Group TALIS is always the number one choice whenever TALIS ist in Sachen Wassertransport und WABAG water transport or control is required. TALIS has the Wasserregulierung die absolute Nummer eins. WABAG sustainable solutions. for a better life industrial sectors and offers innovative, eco-friendly best solution for water and energy management, as TALIS hat die besten Lösungen im Bereich Wasser- and cost-effective solutions, precisely tailor-made to WABAG, a leading multinational company provides well as for industry and municipal applications. With und Energiemanagement sowie für industrielle meet individual requirements and new challenges. a varied range of products we offer comprehensive und kommunale Anwendungen. Mit einer complete life cycle solutions for water, wastewater and solutions for the entire water cycle. From hydrants Vielzahl von Produkten bieten wir umfangreiche desalination plants worldwide has been in the water With over 160 patents WABAG offers solutions for to butterfly valves. From the knife-gate valves to the Lösungen für den gesamten Wasserkreislauf – von treatment business for the past 90 years. individual water reclamation (recycle and reuse) systems employing high-performance processes needle valves. Hydranten, Absperrklappen und Plattenschiebern We have an excellent track record in executing large such as membrane filtration, thermal and membrane bis hin zu Ringkolbenschiebern. Unsere Erfahrung, and complex projects in cities such as Vienna, Sofia, Our experience, innovative technology, global based processes for sea and brackish water innovative Technologie, weltweite Expertise und Izmir, Delhi, Beijing, Windhoek, Algiers and Muscat and expertise and individual consultation process form desalination, including advanced pre-treatment and unser individueller Beratungsprozess bilden die has sustained its success based on the competence the basis for developing sustainable solutions for the water intake & outfalls systems, removal of micro- Grundlage zur Entwicklung nachhaltiger Lösungen of more than 1,500 employees in 20 countries, having efficient handling of the vital resource “water”. pollutants using advanced oxidation and filtration, für den effizienten Umgang mit der lebenswichtigen executed over 2250 projects in the last three decades advanced wastewater treatment with efficient sludge Ressource „Wasser“. globally. management, sludge to energy concepts: anaerobic WABAG has a wealth of experience in plant design, sludge treatment plants with biogas recovery for the construction and operations for both municipal and production of green energy. The National Water Company The National Water Company (NWC) was established strong performance through a commercially viable on 2008 as a government owned statutory company organisation. by a Royal Decree from his Royal Highness, the Xylem Inc NWC is dedicated to providing quality water and Custodian of the Two Holy Mosques, King Abdullah. wastewater management services to all citizens and Xylem is a global water leader offering technology Through its philanthropic arm, Xylem Watermark, the With a strong aspiration for economic growth and residents, while promoting and encouraging skill and deep application expertise across the cycle of company offers critical assistance in water emergencies infrastructure development, the Kingdom initiated enhancement and career progress for its employees water: transporting, treating, and testing it, then and helps provide safe water, sanitation and hygiene the process of privatising its national utility services. and staff. returning it to the environment for re-use. Spun off education for children and families through school- The objective of such a shift is to increase operational from ITT Corporation in October 2011, Xylem serves the based programs in developing countries. With pro- It is the collective efforts and shared responsibility of efficiency in water and wastewater management, while municipal water, wastewater, residential and commercial forma annual revenues of $3.8 billion, Xylem includes the government and the National Water Company that simultaneously contributing to the broader goals of building services, agriculture and industrial markets. It well-known global product brands such as Flygt, Bell will propel the Kingdom and its water and wastewater the Kingdom’s development strategy. produces highly efficient products and systems that & Gossett, Lowara, WTW, Flojet, WEDECO and Goulds management utility sector into a position where high- require less maintenance, use less energy and provide Water Technologies, among others. Xylem’s stock trades NWC’s Vision is to be a world-class water utility quality service is both the standard and the norm. environmental benefits to users and communities. on the New York Stock Exchange and Euronext (XYL), company that provides exceptional water and NWC Website: WWW.NWC.COM.SA Doing business in more than 150 countries, Xylem plays and is listed on the Standard & Poor’s 500 Index. wastewater services in a reliable, sustainable and cost Contact: Mr. Jose Gambe Tibayan, E-mail an important role in improving quality of life, helping effective manner, focusing on the satisfaction of its [email protected], Phone 01-440-9577 communities to grow, farms to prosper and industries customers, employees and communities, to deliver to thrive.

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ROME Global water summit 2012 Brave new world

The GWI conference team Global water summit 2012

Left to right: Oliver Rollinson, Jessica Underwood, Heather Lang, Ankit Patel, Olivia Jensen, James Wemyss, Jenny Yeulet, Brady Porche, Jablanka Uzelac, Jack Ceadel, Lola Arowoshola, Sivan Tal, Ian Elkins, Tom Scotney, Emilie Filou, Emma Welsh, Charlotte Massey, Gina Rowland, Max Borchardt, Ruth Newcombe, Christopher Gasson, Erich Hiner, Samantha Yates, Fabiola Alvarado-Revilla, Antoine Schmitt, Clair Blakeway, Rhys Owen, Marta Hudecova, Clara González-Manchon, Jelena Stanic, Barbara Korell

200 Brave new world // The GWI conference team