Report on Workshops on Making cities ODF ++

(Fecal Sludge and Septage Management)

Workshop Report August-September, 2018

Government of Workshop for cities to become ODF++ (FSSM)

Workshop report

Background

The government of Maharashtra successfully achieved its ambitious mission of making the state Open Defecation Free (ODF) in 2017. The state also recognized that making cities ODF is only half the battle and it is also important to ensure that the ODF status is sustained over time. In its ODF Sustainability Charter, Government of Maharashtra has recognized the importance of fecal sludge and septage management. The entire service chain of onsite sanitation has also been recognized by the Government of Maharashtra (GoM) in its ODF, ODF+ and ODF++ framework. To support this, Government of Maharashtra has issued guidelines for implementation of Faecal Sludge and Septage Management (FSSM) in urban areas (link).

A few cities in Maharashtra, including Wai, Sinnar and Umred, have already taken up citywide FSSM services. In addition, six other cities have initiated planning for citywide FSSM. As a next step in scaling up of efforts for implementation of FSSM services the State Government decided to conduct sensitization and capacity building workshops for cities to become ODF++.

The workshops were organized across the state to cover all the six divisions. In most cases, the workshops were hosted by ULBs that have already initiated planning for citywide FSSM. The host cities showcased what they had done so far on FSSM. It thus provided peer-to- peer learning as well for the ULB officials.

The workshops were organized by SMMUA with the support of CEPT University and AIILSG under the SCBP program of NIUA. They also provided an opportunity to discuss some of the findings under the ongoing study of Financing and Private Sector in FSSM carried out under Bill and Melinda Gates Foundation (BMGF) grant.

The main objective of these workshops was to sensitize the ULB officials on the following aspects:  Need for Fecal Sludge and septage management  Challenges in implementing FSSM and ways to address them  Technical and financial Planning for citywide FSSM in their cities

Eight workshops were conducted across six divisions in Maharashtra with about 412 participants from 136 ULBs. The state government identified these 136 cities, on the basis of various criteria such as: Individual toilet coverage, cities that performed well in achieving ODF status, geographic distribution etc.

SN Division location No. of cities No. of participants 1 Wai 16 34 2 Umred 24 57 3 Akot 18 61 4 Amravati Amravati 15 77 5 Gevrai 16 32 6 Nanded 25 85 7 Nashik Sinnar 14 36 8 Thane Ambernath 08 33 Total 136 412

Presentations and Group Work

The one-day workshop in each of the eight locations covered the following key aspects:

 Need for FSSM: This session provided an overview of the emerging recognition and efforts taken by the state government for FSSM, benefits of FSSM over the conventional sewerage system and insights about negative environmental impacts of carelessly dumping fecal sludge without treatment. The presentation was followed by the video of FSSM planning and implementation in the city of Sinnar in Maharashtra.

 Planning for emptying services: This session highlighted the benefits of scheduled emptying over current practice of demand-based emptying. It also discussed financing options and private sector participation for emptying service. The session also included group exercises to calculate infrastructure requirements in the city for emptying services.

 Planning for treatment services: This Figure 1: Flyers on FSSM shared with participants session gave an overview of different treatment options available for FSSM, implementation and funding options for Faecal sludge treatment plants (FSTP). Participants also worked together to prepare an action plan for implementation of FSSM plan for their respective cities.

 Presentations by host cities: The Chief Officers of the host cities presented details of on-going work, challenges and efforts taken up by them for planning and implementation of FSSM in their cities. Workshop deliberations

1. Sensitization of cities for implementation of FSSM will be crucial for moving towards ODF+ and ODF++ In Maharashtra, 340 out of 384 cities are completely dependent on onsite sanitation systems, mainly comprising septic tanks. Even in cities that have sewerage network, the spatial coverage is not complete and many properties are not connected to the network. At present, in Maharashtra, only 35 ULBs have an existing STP and another 9 ULBs have proposed STPs under AMRUT. For these cities, as well as a few nearby cities it would be possible to take up co treatment at these STPs.

Other ULBs have no facilities to treat their fecal waste at present. In these cities, septic tanks are emptied only when they are full, often once in 8 to 10 years. The septage that is collected by the ULB or private emptiers is indiscriminately disposed in open lands or water bodies without any treatment. This practice has adverse effect on ground water and surface water, which affects the health and environment in its surrounding. Thus, an efficient implementation of FSSM service chain can certainly help in achieving the goal of improved and sustainable sanitation at much lower costs.

The various initiatives taken by the National and state government in the FSSM sector were highlighted to the participants. At the national level, Ministry of Housing and Urban Poverty Alleviation (MoHUA), Government of has rolled out the National Faecal Sludge and Septage Management policy in year 2017. Recently, the protocols for ODF+ and ODF++ have been issued under the Swachh Bharat Mission, where one of the key aspects for a city to attain ODF++ status is to have a proper Faecal Sludge and Septage Management (FSSM). At the State level, Government of Maharashtra had developed the concept of ODF, ODF+ and ODF++ even before the national government protocols. Under this, ODF+ cities are those cities where 80% of residential properties will have access to own toilets and remaining population will have access to public/community toilets and there would also be safe collection, conveyance and treatment / disposal of faecal sludge and septage. The Government of Maharashtra has also issued Government Resolution (GR) directing cities to use the 50% of 14th FC funds and SBM incentive funds for FSSM related activities.

It was also highlighted that these training workshops will help the participants to plan and implement FSSM services in their cities. The participants were informed that post this workshop, cities should start planning for FSSM services and soon after state government (SMMUA) will follow- up regarding their implementation plan and related timeline.

2. Scheduled/regular emptying of septic tanks for ensuring equitable, affordable and environmentally appropriate services For FSSM service to work well, it is important that the full sanitation service chain is addressed, and universal and affordable conveyance services are available to all citizens. The current practice of emptying septic tanks in cities is to provide “emergency complaint redressal system”, rather than as a regular service by the local governments. The irregular or delayed services also put a threat to public health and environment. The user charges for these are often very high ranging from Rs. 1000 to Rs. 7000 per trip in different cities of Maharashtra. It was discussed that a more equitable citywide service linked to local sanitation tax or property taxes is needed.

As national policies on FSSM and CPHEEO have suggested cleaning of septic tanks once in every 2 to 3 years1, the regular cleaning of septic tanks has gained much significance over the last few years. The example of performance linked annuity models for “citywide” scheduled emptying in Wai was presented. It showed how the ULB and private player had joined hands to build a mutually beneficial business model with a win-win situation for all. Under this model, ULB appoints the private player to carry out scheduled emptying service in the city. The Capex cost of the truck and Opex cost of the emptying service will be initially mobilized by the private player which will be paid back by the local government using annuity payments. The private player will be paid against performance linked to the number of septic tanks emptied. The household will pay sanitation tax to the local government, which will ensure that adequate funds are available to recover the cost of emptying service. The risk of late payment raised by private players is attempted to be mitigated through an escrow account mechanism. Thus, with a performance-based contract, customers are assured of a high-quality service with low prices paid through sanitation tax. Lower prices are due to economies of scale, lowering the charge per individual emptying.

The emerging experience of the cities of Wai and Sinnar in Maharashtra in providing citywide scheduled services using a PPP model with a performance linked annuity model can help address concerns of both equity and affordability. The idea of scheduled emptying service was very well appreciated by the ULB officials. Around 96% of cities expressed their interest for implementation of scheduled emptying services in their FSSM action plan submitted by them at the end of the workshop.

1 As per CPHEEO Manual on Sewerage and Sewage Treatment Systems - 2013 ; Part-A Engineering, chapter-9, page-22

In case, some cities decide to continue with demand-based desludging services, a few ideas to improve this service were also highlighted. The licensing or registration of private emptiers along with GPS based monitoring systems need to be setup. This will help to monitor where the tanks are emptied and whether the truck disposes the collected fecal waste at treatment facilities or at the designated sites. . A few cities showed interest for a gradual approach of emptying (strengthening demand-based services first, and then going for scheduled emptying). The participants suggested that there should be state level guidelines and standard formats for registration / licensing / contracting with private sector for both scheduled or demand based emptying services.

3. Treatment options for FSSM In Maharashtra, only 44 cities have an existing or proposed sewage treatment plant. Other cities where no treatment facilities are available, the septage collected from septic tanks is dumped without any treatment into dumping ground/open ground posing health and environment risks. The participants were exposed to various treatment options that can be adopted based on the local context. Multiple treatment options for FSSM are possible for different typologies of cities, for example: large cities with STP can co-treat faecal sludge at their own STP; towns in 20 km vicinity of cities with STP can explore co-treatment with nearby city STP, while other towns can treat septage at an independent Faecal Sludge Treatment Plant (FSTP). The participants were taken through the different treatment technologies for setting up independent FSTPs, which have been vetted and approved by NEERI. The cities can now take up these technologies for construction of FSTPs. Majority of small and medium sized cities were interested in setting up an independent FSTP; About 43 cities could treat at their own STPs, or were within 20 km radius of STP cities, and were interested in the co-treatment option. A few others wanted to explore the possibility of co- treatment with their SWM treatment.

The independent treatment facilities can either be implemented through DPR (Detailed Project Report) based tender or DBO (Design, Build, Operate) type tenders covering key clauses in terms of land availability, O&M, payment terms etc. DBO tenders are increasingly becoming popular in comparison to traditional DPR tenders. The DBO approach provides an opportunity to single private entity to design, construct and operate the treatment facility, bringing ease in project delivery and monitoring. The DBO based approach for tendering FSTP have been used in Sinnar and Umred cities of Maharashtra, 76 FSTPs of Andhra Pradesh and for 72 FSTPs of Telangana. A model contract for DBO tender for FSTP based on the experience of Sinnar city was shared with the participants. There was a mixed response from the cities; with 41 cities opting for a DBOT based approach and 31 cities for DPR based approach –for implementation of their independent FS treatment plant. Most cities had land for FSTPs. However, 12 cities did express their concern that currently there is no land available in their cities for setting up of treatment plant. These cities would have to procure land for setting up their FSTPs.

4. Financing FSSM services and sanitation tax The financing requirements for provision of universal FSSM services are not very high as compared to conventional sewerage systems. The state government of Maharashtra has issued Government Resolution (GR) on ODF+ and ODF++ framework and in that they have directed cities to use the 14th FC funds and SBM incentive funds for financing FSSM projects (link to GR).

For treatment systems, capital cost can be mobilized either through 14th FC or SBM incentive funds which were awarded by GoM to all ODF cities. For operation and maintenance cost, these will have to essentially come through local government own funds. It was also highlighted that as public funds are used for capital expenditure, it will be local government’s responsibility to ensure sustainability and equity in FSS services.

For the conveyance services, there are opportunities for financing by private enterprises. The capital investment for the purchase of trucks can either be mobilized through local government funds or private sector financing. Currently, the operation and maintenance cost in conveyance is financed through user charges collected at the time of emptying. However, it was found that these charges are usually very high ranging from INR 1000 to INR 7000 per trip per septic tank. Households are generally willing to pay these high distress charges as they have no other recourse but to pay whatever the emptier demands.

As an alternative to high user charges, cities can levy sanitation tax to finance conveyance services. The Maharashtra Municipal Councils, Nagar Panchayats and Industrial Areas Act, 1963, enable ULBs to levy tax towards provision of sanitation services in the city. This includes conservancy tax, compulsory and voluntary taxes including general sanitary tax, special latrine tax, sewerage benefit tax and special sanitary tax. The case example of Wai and Sinnar, cities who have levied a sanitation tax for financing conveyance services through private sector participation, was explained to participants. Under this, property owners pay a yearly sanitation tax to the government as a part of their property tax bills, as against current system of paying a user charge/fee at the time of emptying services. Sanitation tax helps the citizens to hold government accountable for ensuring service delivery, while also securing a reliable funding source for current and future services for the Local government. Sanitation tax can be levied as a flat charge or as a percentage of property tax. Majority of cities readily accepted the idea to levy sanitation tax.

Around 86 cities that required independent FSTPs (including cities that have selected co-treatment with SWM), around 67 cities have both fund and land available for implementation of FSSM services. Few cities highlighted that they have already allocated their 14th FC funds for other activities and hence they would require additional financing support for FSSM. The participants also suggested that there should be dedicated financial allocation for FSSM from the state.

5. Private sector participation in FSSM In Maharashtra, the available data from cities suggests that nearly 30% of cities have private service providers for emptying services. In other cities, emptying vehicles are largely operated by the ULBs themselves, though in some cases private sector is contracted to provide services using these trucks. Private sector service providers also operate in many cities, especially around major metropolitan areas. Around 83 cities express their interest to involve private sector players for implementation of

FSSM services.

The case of Wai and Sinnar cities for the engagement of private sector for emptying services was discussed with the participants. In both these cities, the ULB has introduced a performance-based contract, wherein the private sector will provide the emptying services to all households/properties on behalf of the local government and will be paid a contract fee against this service. Under this contract, the private sector has invested and brought their own trucks for the emptying services. The private player will be paid on the performance based payments linked to the number of septic tanks emptied. The risk of late payment raised by private players was mitigated through escrow account mechanisms. For treatment, the private sector was involved in both the construction and Operation and maintenance for 3 year period through local government funding. It was also highlighted that though private sector is ready for capex investment in trucks they are in general not ready for funding treatment facilities.

The small cities expressed their concern that according to government regulations, each tender requires at least 3 bidders. In the small towns, this is often not possible and ULBs do not always attract enough bids. They have to go through multiple rounds of tendering before they could award a contract successfully. They suggested that to help small cities, state government should identify and

empanel qualified service providers.

The participants also highlighted that their current contracts with private sector are relatively simple documents and they do not have payments linked to performance, monitoring mechanisms or even evaluation of the risks involved with a private sector engagement. It was suggested that step-by- step guidelines, sample contract term sheets, and monitoring processes and forms would be helpful for the cities.

Many cities have shown interest in private sector engagement as they had previous experience working with the private sector in the solid waste management sector. Taking this experience forward, it is likely that greater private sector participation in FSSM can bring in technical expertise and capex financing for emptying services.

Way Forward

The workshops helped the ULBs to strengthen their capacity and understand the relevance and importance of FSSM in non-sewered towns. These workshops sensitized them to move towards ODF+ and ODF++ to achieve sustainable sanitation services in their cities. Various discussions, group activities and resource materials helped participants triggered their thinking towards improved sanitation services through FSSM. The key actionable points that emerged from the discussions are as described below:

 Need for state level directives for cities to take up FSSM activities including the details of emptying services through either demand based emptying or scheduled based emptying, provision of sanitation tax, involvement of private sectors, listing of treatment options, implementation of Fecal sludge treatment plant through either DBOT or DPR based approach, fund allocations, monitoring plan and IEC activities required for FSSM projects.

 Revised government resolution for co-treatment of septage at own STP or nearby cities with STP. It was highlighted that current co-treatment resolution covers cities within 100 Km distance of cities with STP and the transportation of septage to such large distance will be uneconomical for ULBs.

 Provision of specific funds for FSSM from State government for FSSM activities was requested by some cities that have already planned or allocated their 14th FC and Incentive funds for other activities.

 Support and guidelines for involvement of private sector through performance based contracts and proper monitoring systems will be required. Securing empanelment of private sector providers for FSSM, for emptying and treatment, at the state level will help ULBs in faster implementation of FSSM projects.

 Support for preparation of FSSM plan/DPR Many cities also highlighted that they would require state support in identifying experienced consultants in FSSM for preparation of FSSM plan or DPR for their cities.

Group Photo with the participants

Nanded Municipal Corporation Sinnar Municipal Council

Amravati Municipal Corporation

Georai Municipal Council

Group Photo with the participants

Wai Municipal Council Ambernath Municipal Council

Akot Municipal Council

Umred Municipal Council

Annexures

Workshop Agenda Outline

Time Sessions Presenters State, CEPT & 10:00 – 10: 30 Introduction and Welcome AIILSG ODF++ (FSSM) - Need of the hour  Introduction to FSSM for making city of ODF++ 10:30 – 11:00  State agenda for FSSM ( Policy, guidelines, financing) CEPT / AIILSG  Monitoring by State for FSSM activities  Sinnar ODF+/++ movie Planning for Onsite sanitation emptying services  Demand v/s Scheduled emptying  Licensing v/s contracting private sector 11:00 – 11:45  Monitoring emptying services CEPT / AIILSG  Awareness activities  Involving private sector – model contracts  Financing emptying services Group Work: Discussions with ULBs for preparing FSSM Planning, Availability of private sector contractors, idea of scheduled 11:45 – 12:45 emptying, tax based system, funds for emptying services , City Groups working out number of septic tanks to be emptied, number of trucks required Presentation by each group 12:45 – 13:15 Host city to present on FSSM activities taken up by the city Host city 13:15 – 14:15 Lunch Planning for Treatment services  How to choose a technology  Options for septage treatment 14:15 – 15:00  Exploring reuse of treated septage CEPT/AIILSG  Involving private sector  DBOT Tender v/s DPR based Tender  Financing Treatment services Group Work: Discussions with ULBs regarding land for treatment facility, 15:00 – 16:00 funds for treatment facility, working out number total septage City Groups load to be treated Presentation by each group 16:00 – 16:30 Preparation of action plan for ODF++ by Each city Each city CEPT/AIILSG/City 16:30 – 16:45 Key Take Away and Wrap Up officials

FSSM Action Plan for your city

S.no. Description of action plan Timeline 1 Assessment of onsite sanitation systems (Septic tanks, pit toilets) in your city?

2 FSSM plan for your city and its timeline for implementation 2.a Decide mode of Emptying services - Scheduled or demand______- Emptying cycle (2/3/5 years)? ______- Number of septic tanks to be emptied daily______- Number of trucks required______- O&M cost of emptying services (per year)______- Sanitation tax (per property per year)______- Will you explore private sector for providing emptying services (Yes/No)______

2.b Decide Fecal Sludge treatment option - Co-treatment with own STP______- Co-treatment with nearby city STP (city name and distance)______- Co-treatment with SWM______- Independent treatment plant______- Volume of septage to be treated (cum/day)______- Mode of implementation (DBOT/DPR)______

3 Council resolution for implementation of FSSM plan (timeline) 4 Source of financing for Emptying and Treatment? - Emptying: Capex______Opex______- Treatment: Capex______Opex______

5 City allocates land for treatment plant? (timeline)

6 City implements the FSSM plan (timeline) 7 What all Awareness activities city plans to undertake?

8 What type of Monitoring mechanism will city setup for emptying and treatment?

Analysis from the action plan submitted by cities

Sr. Emptying Number % No (out of 128* cities) 1 Cities agreed to do Scheduled emptying 124 97 2 Cities willing to involve private players for emptying service 83 65 provision 3 Cities with Fund availability for emptying CAPEX and opex 83 65

4 Cities agreed to implement Sanitation tax for emptying OPEX 27 21 Treatment Number(out of 128 % cities) 5 Cities planning for co-treatment at own/nearby STP 54 43 6 Cities planning for independent FSTP 74 58 7 Cities with both Fund and Land availability for independent FSTP 56 76 *Out of a total 134 cities that attended these workshops, Action Plan data was filled by 128 cities List of cities that have received training for FSSM planning and implementation

Sr.No City name Sr.No City name Sr.No City name Sr.No City name 1 Achalpur 35 Deoli 69 Latur 103 Rajura 2 Ahmadpur 36 Desaiganji 70 Loha 104 Ramket 3 Alandi 37 Dharmabad 71 Lonavala 105 Risod 4 Ambad 38 Dharur 72 Mahabaleshwar 106 Sailu 5 Ambejogai 39 Digras 73 Malkapur 107 Sangamner 6 Ambernath 40 Dondaicha 74 Malkapur 108 Sangranpur 7 Anjangoan 41 Duelgaon Raja 75 Malwan 109 Sasvad 8 Ardhapur 42 Erandol 76 Mangrulpir 110 Satana 9 Arvi 43 Faizpur 77 Manjlegoan 111 Satara 10 Aurangabad 44 Gadchiroli 78 Mehkar 112 Savda 11 Ausa 45 Gadhinglaj 79 Morshi 113 Savner 12 Badlapur 46 Gangakhed 80 Motala 114 Sawantwadi 13 Balapur 47 Gangapur 81 Mudkhed 115 Shegaon 14 Ballarpur 48 Ghantaji 82 Mul 116 Shendurjana 15 Basmath 49 Gondiya 83 Murtijapur 117 Sindi 16 Bhadravati 50 Hadgaon 84 Murum 118 Sonpeth 17 Bhandara 51 Hinganghat 85 Nandura 119 Talegaon 18 Bhatkuli 52 Ichalkaranji 86 Narkhed 120 Tasgaon 19 Bhokar 53 Jalgoan 87 Nilanga 121 Telhara 20 Bhokardhan 54 Jalna 88 Paithan 122 Tirora 21 Bhusawal 55 Jintur 89 Palam 123 Tumsar 22 Bid 56 Kalameshwar 90 Panchgani 124 Udgir 23 Biloli 57 Kalamnuri 91 Pandharkaoda 125 Uran 24 Buldana 58 Kamptee 92 Panhala 126 Uran- Islampur 25 Chalisgaon 59 Kandhar 93 Paranda 127 Vaijapur 26 Chandurbazar 60 Kannad 94 Parli 128 Vengrule 27 Chikhaldara 61 Kapa 95 Parola 129 Wani 28 Chikhli 62 Karad 96 Pathardi 130 Warora 29 Chiplun 63 Karanja 97 Pathri 131 Warud 30 Daruha 64 Karjat 98 Patur 132 Washim 31 65 Khamgaon 99 Pauni 133 32 Dattarpur 66 Kinwat 100 Peth Umri 134 Yevla 33 Deglur 67 Koregaon 101 Pulgaon 34 Deolali 68 Kundalwadi 102 Rahta Pimplas