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Data Collection Survey on Sewerage Sector in Democratic Socialist Republic of Sri Lanka

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Data Collection Survey on Sewerage Sector in Democratic Socialist Republic of Sri Lanka Democratic Socialist Republic of Sri Lanka National Water Supply & Drainage Board (NWS&DB) DATA COLLECTION SURVEY ON SEWERAGE SECTOR IN DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FINAL REPORT SEPTEMBER 2012 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) NIHON SUIDO CONSULTANTS CO., LTD. YACHIYO ENGINEERING CO., LTD. YOKOHAMA WATER CO., LTD. 1LKR ＝ 0.549 ¥ 1USD ＝132.37 LKR 1USD ＝ 78.63 ¥ DATA COLLECTION SURVEY ON SEWERAGE SECTOR IN DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FINAL REPORT DATA COLLECTION SURVEY ON SEWERAGE SECTOR IN DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FINAL REPORT Table of Contents Page EXECUTIVE SUMMARY .................................................................................................. S - 1 CHAPTER 1 INTRODUCTION 1.1 Background ......................................................................................................... 1 - 1 1.2 Objectives of the Survey ..................................................................................... 1 - 1 1.3 Terms of Reference of the Survey ..................................................................... 1 - 2 1.3.1 Survey Areas ...................................................................................................... 1 - 2 1.3.2 Terms of Reference ........................................................................................... 1 - 3 1.4 Structure of the Report ........................................................................................ 1 - 3 CHAPTER 2 NATIONAL POLICY AND STANDARDS 2.1 Laws, Acts, Regulations and Standards Related to the Sewerage Sector ............... 2 - 1 2.2 Organizations Relevant to the Sewerage Sector ................................................... 2 - 3 2.3 National Policy, Sector Program, and Financial Arrangement............................ 2 - 9 2.3.1 National Policy..................................................................................................... 2 - 9 2.3.2 NWSDB’s Program.............................................................................................. 2 - 9 2.3.3 Financial Arrangement........................................................................................ 2 -10 CHAPTER 3 PRESENT STATUS OF SEWERAGE SECTOR 3.1 Sewerage Development....................................................................................... 3 - 1 3.1.1 Existing Sewerage Systems ............................................................................... 3 - 1 3.1.2 On-going Sewerage Projects ................................................................................. 3 - 2 3.1.3 Sewerage Project Formulation ............................................................................ 3 - 5 3.1.4 Sewerage Development Priority ......................................................................... 3 - 5 3.1.5 Present Financial Arrangement for Sewerage Works.......................................... 3 - 7 3.2 On-site Treatment Facilities ................................................................................ 3 -10 3.2.1 Legal Framework .............................................................................................. 3 -10 3.2.2 Present Status of On-site Treatment Facilities .................................................. 3 -11 3.2.3 Present Financial Arrangement for On-site Treatment Facilities .................. 3 -12 3.3 Present Conditions of Institutional Arrangement ................................................... 3 -12 3.3.1 Institutional Arrangement for Sewerage Development ......................................... 3 -12 3.3.2 Institutional Arrangement for On-site Facilities ................................................. 3 -13 CHAPTER 4 PRESENT STATUS OF SEWERAGE SECTOR IN 14 CITIES 4.1 Present Status of Water and Environment Sectors .............................................. 4 - 1 4.1.1 Population and Population Density ................................................................... 4 - 1 4.1.2 Water Supply ..................................................................................................... 4 - 1 i DATA COLLECTION SURVEY ON SEWERAGE SECTOR IN DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FINAL REPORT 4.1.3 Solid Waste Management .................................................................................. 4 - 2 4.1.4 On-site Treatment .............................................................................................. 4 - 3 4.1.5 Present Financial Arrangement for On-site Treatment Facilities ........................... 4 - 4 4.1.6 Sewerage Facilities ............................................................................................ 4 - 5 4.1.7 Treatment Systems for Hospitals ...................................................................... 4 - 7 4.1.8 Treatment Plants at Industrial Complexes ......................................................... 4 - 7 4.2 Present Status of Sewerage Development........................................................... 4 - 8 4.2.1 On-going Sewerage Projects ............................................................................. 4 - 8 4.2.2 Existing Sewerage Frameworks and Plans ........................................................ 4 -10 4.3 Consideration on Project Preparation ................................................................ 4 -16 4.3.1 Selection of Treatment Process ......................................................................... 4 -16 4.3.2 Construction and Maintenance Costs ................................................................ 4 -16 CHAPTER 5 FINANCIL STATUS OF SEWERAGE SECTOR 5.1 Required Financial Resources to Achieve the Sewerage Coverage Target ....... 5 - 1 5.2 Central Government’s Financial Condition......................................................... 5 - 2 5.2.1 National Budget for Sewerage Scheme Implemented by NWSDB .................... 5 - 2 5.2.2 National Budget for Sewerage Scheme Other than Those of NWSDB (CMC Portion of the Greater Colombo Wastewater Management Project) ...... 5 - 3 5.2.3 Limitation of GOSL’s Available Financial Resources for Sewerage Investment ................................................................................. 5 - 3 5.3 NWSDB’s Financial Condition ......................................................................... 5 - 5 5.3.1 Recent Performance of NWSDB as a Water Utility .......................................... 5 - 5 5.3.2 NWSDB Corporate Plan 2012-2016................................................................... 5 - 7 5.3.3 Financial Condition of NWSDB ......................................................................... 5 - 7 5.3.4 NWSDB’s Operating Cost and Debt Service Obligation.................................... 5 - 9 5.3.5 Sewerage Tariff Revision .................................................................................... 5 -10 5.3.6 Proposed Water Tariff Increase ........................................................................... 5 -14 5.3.7 Financial Projection of NWSDB......................................................................... 5 -14 5.3.8 NWSDB’s Financial Capacity to Cross Subsidies the Sewerage Operation....... 5 -15 5.4 Local Government’s Financial Condition ......................................................... 5 -16 5.4.1 Available Financial Resources for Local Governments .................................... 5 -16 5.4.2 Financial Status of the 14 Cities.......................................................................... 5 -17 5.4.3 Example of Kolonnawa Urban Council ............................................................ 5 -18 5.4.4 Present Status of Sewerage Sector in 14 Cities................................................... 5 -19 5.5 Financing of the House Connection Cost .......................................................... 5 -20 5.6 Fundamantal Issue regarding Sewerage Sector Financing in Sri Lanka ........... 5 -21 5.6.1 Central Government versus Local Government ................................................ 5 -21 5.6.2 Grant versus Loan ............................................................................................... 5 -23 5.6.3 Financing of On-site Sanitation ........................................................................ 5 -23 5.6.4 Economic Impact of Sanitation ......................................................................... 5 -24 5.6.5 Private Public Partnership (PPP) for Sewerage ................................................. 5 -25 CHAPTER 6 FINDINGS AND RECOMMENDATION FOR SEWERAGE SECTOR 6.1 Central Government Issues ................................................................................. 6 - 1 6.1.1 Policy, Law, and Standard ................................................................................. 6 - 1 6.1.2 Financial Arrangement of Central Government ................................................ 6 - 2 6.1.3 Institutional Arrangement of Central Government ............................................ 6 - 3 6.2 Technical Issues ................................................................................................ 6 - 4 6.3 Issues in Sewerage Implementation Sites ........................................................... 6 - 5 ii DATA COLLECTION SURVEY ON SEWERAGE SECTOR IN DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FINAL REPORT 6.4 Issues in Community and Local Government..................................................... 6 - 7 CHAPTER 7 RECOMMENDED ROAD MAP TO PROMOTE SEWERAGE DEVELOPMENT AND POSSIBLE ASSISTANCE OF DONORS 7.1 Road Map to Promote
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